# Ask me anything about investing in small cap stocks

**URL:** https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414
**Category:** AMA (Ask Me Anything)
**Created:** [June 17, 2023, 7:37am UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414 "2023-06-17T07:37:01Z")
**Posts on this page:** 11
**Page:** 2

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### Author: ![ArvindKothari](https://tradingqna.com/user_avatar/tradingqna.com/arvindkothari/32/66229_2.png) [@ArvindKothari](https://tradingqna.com/u/ArvindKothari)
#### Post date: [June 22, 2023, 10:54am UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414/24 "2023-06-22T10:54:31Z")

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Volatility is inherent in small-cap investing, and it’s crucial to always keep that in mind. During challenging market conditions, small-cap stocks can experience corrections of up to 50% or even more.

Before investing in small-cap stocks, it’s important to adopt a long-term perspective. Therefore, it is advisable to have a minimum investment horizon of 3-5 years.

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### Author: ![Bhupendradhamii](https://tradingqna.com/user_avatar/tradingqna.com/bhupendradhamii/32/52837_2.png) [@Bhupendradhamii](https://tradingqna.com/u/Bhupendradhamii)
#### Post date: [June 23, 2023, 3:05pm UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414/25 "2023-06-23T15:05:36Z")

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Best Small Cap Mutual Fund?

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### Author: ![rjs391](https://tradingqna.com/user_avatar/tradingqna.com/rjs391/32/66434_2.png) [@rjs391](https://tradingqna.com/u/rjs391)
#### Post date: [June 23, 2023, 4:16pm UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414/26 "2023-06-23T16:16:22Z")

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Hello Arvindji,

I would like to learn more about your background in terms of investing. How did you form an interest towards investing and also what thought process made you focus on mid/smallcap investing or say scuttlebutt investing. There are many investing styles out there but what was the thought process behind sticking to the current one that you do and a little bit about your investing journey. I guess you would call yourself a growth investor right?

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### Author: ![ArvindKothari](https://tradingqna.com/user_avatar/tradingqna.com/arvindkothari/32/66229_2.png) [@ArvindKothari](https://tradingqna.com/u/ArvindKothari)
#### Post date: [June 27, 2023, 9:37am UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414/27 "2023-06-27T09:37:22Z")

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There are numerous themes that I find appealing, and one theme that stands out to us is our bullish outlook on India’s manufacturing sector.

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### Author: ![ArvindKothari](https://tradingqna.com/user_avatar/tradingqna.com/arvindkothari/32/66229_2.png) [@ArvindKothari](https://tradingqna.com/u/ArvindKothari)
#### Post date: [June 27, 2023, 9:58am UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414/28 "2023-06-27T09:58:23Z")

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Small-cap investing is attractive during a bull market, but staying invested after a significant correction in a bear market can be challenging. In such a market, conducting thorough research and building positions in companies becomes advantageous, as entering quickly in favorable markets can be limited due to rapid market reactions. To invest in small-cap stocks, it is advisable to have a long-term horizon of 3-5 years and to recognize volatility as an integral aspect of this asset class.

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### Author: ![ArvindKothari](https://tradingqna.com/user_avatar/tradingqna.com/arvindkothari/32/66229_2.png) [@ArvindKothari](https://tradingqna.com/u/ArvindKothari)
#### Post date: [June 27, 2023, 10:07am UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414/29 "2023-06-27T10:07:19Z")

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Hi YS\_Bhargav, I believe that capital has not been a challenge in the past few years, and technology has been evolving rapidly. Over the last decade, we have witnessed numerous small players transform into industry giants. Therefore, I do not think this is the case in the current world.

Holding companies for a longer period is becoming increasingly challenging. It is essential to closely track their performance.

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### Author: ![ArvindKothari](https://tradingqna.com/user_avatar/tradingqna.com/arvindkothari/32/66229_2.png) [@ArvindKothari](https://tradingqna.com/u/ArvindKothari)
#### Post date: [June 27, 2023, 10:12am UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414/30 "2023-06-27T10:12:00Z")

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Some sectors that are well poised include solar modules, textiles, electronic manufacturing, and capital goods.

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### Author: ![ArvindKothari](https://tradingqna.com/user_avatar/tradingqna.com/arvindkothari/32/66229_2.png) [@ArvindKothari](https://tradingqna.com/u/ArvindKothari)
#### Post date: [June 27, 2023, 10:15am UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414/31 "2023-06-27T10:15:38Z")

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It can be challenging as small-sized companies tend to react quickly. I am also exploring the correct method to navigate this situation. It depends on each scenario.

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### Author: ![Prakashsingh](https://tradingqna.com/user_avatar/tradingqna.com/prakashsingh/32/49669_2.png) [@Prakashsingh](https://tradingqna.com/u/Prakashsingh)
#### Post date: [June 28, 2023, 6:04am UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414/32 "2023-06-28T06:04:48Z")

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Hello Arvind, @ArvindKothari

Saw your recent picture with RK Damani ji, Nemish and durgesh shah. Inspiring stuff 🙂

Who were your idols growing up and can you share any lessons that you’ve learnt from your Gurus or mentors ? It would be great to know for all of us.

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### Author: ![Bhuvan](https://tradingqna.com/user_avatar/tradingqna.com/bhuvan/32/843_2.png) [@Bhuvan](https://tradingqna.com/u/Bhuvan)
#### Post date: [July 10, 2023, 6:20am UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414/33 "2023-07-10T06:20:21Z")

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Thank you so much for doing the AMA @ArvindKothari, this was really insightful.

We’ll close the AMA with this. We’ll record a podcast with Arvind and dive deeper into some of these things.

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### Author: ![Bhuvan](https://tradingqna.com/user_avatar/tradingqna.com/bhuvan/32/843_2.png) [@Bhuvan](https://tradingqna.com/u/Bhuvan)
#### Post date: [July 10, 2023, 6:20am UTC](https://tradingqna.com/t/ask-me-anything-about-investing-in-small-cap-stocks/148414/34 "2023-07-10T06:20:24Z")

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