MF Investments In Small And Mid Caps Hold Promise

This extremely important for investors to understand the market for small and medium cap companies, particularly when it comes to investing in this segment through the instrument of mutual funds. There are 3245 listed small-cap companies in India, 160 mid-cap ones, and only 73 large-cap ones. Most of these stocks represent small and medium companies, which the government is eager to assist and help in their recovery from the ill-effects of the pandemic. Investors need to analyse carefully what is feasible in terms of research into these companies and what should be left alone. Investing in smaller companies are equivalent to what is called a ‘percentage shot’ in cricket. So investors need to have a strong desire and the right attitude to manage the percentages. Succeed at a higher percentage, and fail at a lower percentage. Be prepared for the occasional bust and know...