Are small-cap stocks riskier than large-cap stocks?

Although small-cap stocks are considered riskier investments than large-cap stocks, enough small-cap stocks are offering excellent growth potential and high potential returns on equity to warrant their inclusion in the holdings of all but the most conservative investors.

Is it good time to invest in small cap funds?

Small-cap funds can perform exceptionally well during a bullish market phase. However, these funds can go through some difficult market phases, leading to an abrupt fall in their returns. Investors should practice caution while investing in these funds.

How much of my portfolio should be in small cap stocks?

Allocation Within Classes You can start with 50 percent of your stocks in large-caps, 30 percent in mid-caps, 20 percent in small-caps. Adjust from there according to your risk tolerance. For example, if you want more growth, you could go with 40 percent large-caps, 40 percent mid-caps and 20 percent small-caps.

What are the best small cap stocks?

BJ’s Restaurants.

What is an example of a large cap stock?

Included within large caps are mega caps, which are typically defined as companies with markets caps of $200 billion or above. These tend to be companies that are very stable and dominate their industry. Wal-Mart, the world’s largest retailer, is an example of a mega-cap stock.

What is the definition of small cap stock?

The “cap” in small cap stocks refers to a company’s capitalization as determined by the total market value of its publicly traded shares. Small cap stocks are generally defined as the stock of publicly traded companies that have a market capitalization ranging from $300 million to about $2 billion.

What are mid cap stocks?

Mid cap stocks means those stocks whose market capitalization is between INR 50 Billion and INR 100 Billion. Mid caps stocks capitalization is between the range of small cap stocks and large cap stocks.