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Showing posts from November, 2018

Is it beneficial to invest in small and mid-cap stocks?

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Stocks of the companies that have small proportion of market share in their industries and with good managements bear foremost potential of exponential growth. Such companies are usually have  small cap and medium cap stocks and therefore Multibagger stocks are generally from small or medium cap stocks. Now what is this Multibagger returns or Multibagger Stocks??? Multibagger stocks are stocks that are expected to give multiple times returns in specific time period. Suppose stock delivered you 1 time (100%) return in 3 years than the stocks are known as single bagger stocks. If stocks give 5 times returns then they are 5 bagger stocks. Same way if you get multiple times returns it means those are multibagger stocks. For multibagger stocks you would need many bags to carry its returns. Small cap and mid cap stocks has high growth capacity and deliver high ROI as gives high capital appreciation. SO what are these Small- cap Stocks ??? Small-caps stocks generally refe

Does Long term makes any difference for good returns?? Explained with Story

This story is of Chinese Bamboo Tree, like any other plant it also requires nurturing  (water, fertile soil, sunshine). But when it comes to its growth  In its first year, we see no visible signs of activity.  In the second year, again, no growth above the soil.  The third, the fourth, still nothing.  Our patience is tested and we begin to wonder, will it ever grow, are we in right direction??? But the miracle happens finally in the fifth year, yes in 5th year, patience is rewarded. The Chinese Bamboo Tree grows 80 feet in just six weeks! Does the Chinese Bamboo Tree really grow 80 feet in six weeks?  Actually the little tree growing underground, developing a root system strong enough to support its potential for outward growth in the fifth year and beyond.  The same things happens with investment. Investors has to wait patiently for years for their investments to grow in best stocks to buy , here also for at least 5 years,  short term traders, speculators, lott

Which is the best investment plan in stock market?

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Best Investment plan means the plan that maximises your returns with the given level of risk or should minimize your risk for given level of returns. Now to reduce risk for given level of returns or to increase returns for givn level of risk   you need to make diversified investments in different stocks Let’s see what is diversification and why it is important. Diversification   is a technique that reduces risk by allocating investments among various financial instruments, industries, and other categories. It aims to maximize return with reduced risk. Now here we are talking about bestinvestment plan in stock market so we are talking only about diversification in different stocks. Let's say you have a portfolio of only oil stocks and any adverse price movement comes in crude oil  then share prices of oil stocks will drop. Your portfolio will experience a noticeable drop in value.If, however, you balanced the portfolio with a couple of pharma stocks, IT or bank