Catch them young and watch them grow is an adage that best describes small and mid-cap stocks. Deepika Asthana puts some of them under the scanner
Small and midcaps remind one of Sri Lankan cricketer Marvan Atapattu. Now considered a stylish batsman, he had a really poor start. He scored only one run in his first six test innings. Nobody predicted during that tumultuous time that the same batsman would go on to score 16 test centuries and amass 5000+ runs in test cricket.
Most mid-cap stocks have a similar journey. They tend to start out in anonymity and then grow to become giants.
When investors begin their investment journey, they naturally gravitate towards large-cap stocks. These are stocks of well established companies that provide our portfolios with the necessary stability. However, since these stocks are mostly on top of their game, they provide little or no opportunity for aggressive growth.
This story is from the May 2018 edition of Outlook Money.
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This story is from the May 2018 edition of Outlook Money.
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