Benefit of investing in small-cap stocks

Benefit of investing in small-cap stocks

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

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