Large Caps Offer Better Risk-Reward Than Small Caps: Harish Krishnan

• Harish Krishnan of Aditya Birla Sun Life AMC states large-cap stocks currently offer better risk-reward than mid and small caps.
• Market leadership is shifting from B2B to consumption-led themes, with sectors like banks, IT, metals, and FMCG poised to lead.
• Small caps are 'overcrowded,' with 23% of Indian mutual fund assets invested in them, despite accounting for only 11% of profit pools.
• Consumption, IT services, and materials are highlighted as key sectors for the next 12-18 months.
• Equities are expected to outperform gold medium-term, and selective opportunities exist in consumer-focused small caps.

Why It Matters: Large caps provide superior risk-reward over small caps due to market shifts and overcrowding.