As a thumb rule how much minimum market cap should a stock have to qualify for investment purpose?

General
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As a thumb rule how much minimum market cap should a stock have to qualify for investment purpose?

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anyone any answers please? i am sure there are many seasoned investors in this forum.

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Hi Rahul,

What is your risk appetite? In my experience, the min acceptable market cap is inversely proportional to the risk tolerance. Meaning that the higher the risk tolerance the lower the min limit would be.

I feel comfortable looking at companies with min of 50 crores of market cap but there are seasoned players I know who don’t mind looking at 10 cr. type of companies as well. So, it all depends on your risk-reward picture.

If you are a beginner, I would advise to keep the bar a little higher and diversify the portfolio well among large, mid and small caps.

All the best!

~Neha (www.VRDNation.com)