Where to invest small cap or large cap stocks?

Feb 17, 2021 | 1 min Read

A small cap is generally a company with a market capitalization below Rs 5,000 crore while Large-cap companies have a market cap of Rs 20,000 crore or more. Large caps tend to be more mature companies, and so are less volatile during rough markets as investors fly to quality and become more risk-averse. Shares of small caps and midcaps may be more affordable for investors than large caps, but smaller stocks also tend to have greater price volatility. Small-cap stocks tend to have higher growth rates. Again, it's easier for a smaller company to double its revenue, whereas mature companies tend to see slowing revenue growth. On the other hand Small-cap companies can be riskier investments than large-cap companies. They have greater growth potential and tend to offer better returns over the long-term, but they do not have the resources of large-cap companies, making them more vulnerable to negative events and bearish sentiments. Both have their benefits and drawbacks you need to decide which suits you to invest as per your financial goals ,take the help of experts.