New Delhi, Feb. 5 -- Investors should avoid systematic investment plans (SIPs) in small cap and mid cap mutual funds right now and even consider redeeming their investments in such funds as valuations are 'absurd', S Naren, executive director and chief investment officer of ICICI Prudential Asset Management Company, said on 25 January at an event organised by IFA Galaxy, an association of mutual fund distributors.

He also explained why he is bullish on large caps and India's macro situation and the risks in the initial public offering (IPO) market.

In 2013-14, the valuations of small and mid caps were very cheap. From then, it has gone absolutely absurd. Then we thought, are we looking at it the wrong way? Because, after all, India is g...