Benefit of investing in small-cap stocks | In this world of investment, small-cap funds often stand out as a compelling option for those seeking substantial growth potential.
Benefit of investing in small-cap stocks | Potential for growth- Small businesses offer greater growth potential, which implies investors will be in great profit.
Benefit of investing in small-cap stocks | Variety of business- It is not always that small businesses are new. Some are already developed and leads of a range of investment opportunities.
Benefit of investing in small-cap stocks | Less Popular- This means that the small businesses are less known and the shares can be frequently sold at a lower price and can yield a healthy return.
Benefit of investing in small-cap stocks | High volatility- They are quite erratic since they can quickly fall in value during a bear market.
Benefit of investing in small-cap stocks | Liquidity- Because of low trading volume, these stocks are least liquid among large, medium, and small-sized corporations.
Benefit of investing in small-cap stocks | High potential return- In a favourable market they could turn into multi-baggers that produce a return of above 100%.