Follow the money

Why should you invest in small caps or why should you not?

- DHIRENDRA KUMAR

There's this well-known story about the famous American bank robber Willie Sutton. Sutton was asked by a newspaper reporter why he robbed banks. He replied, "Because that's where the money is". What's the connection of this with small-cap investing? We'll come back to that at the end of this page.

As you can guess from the subject of our cover story, I will talk about small-cap investing on this page. What do you think I'm going to say? Old-timers reading 'Wealth Insight' and my columns for years will probably think they have a good idea, but I could easily prove them wrong.

How? Like a good debater in school or college, I can equally well argue for or against the motion. I can give you 100 per cent convincing reasons that small-cap investing is too risky for you to dabble in. Or, I can give you 100 per cent convincing reasons that small-cap investing is the best way for you to make outsized returns on equity investing.