Small cap. vs large cap

What are the securities and risks of deliveries in large cap. and small cap. ?
For high returns , which cap. is fine to invest ?
Is there any risky involve in small cap. ?

Elaborate your question.

I made some changes about my query .

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Large means big, like elephants, so they will move slowly relatively to mid and small caps. Mid caps are like horses, they can run fast for many more years until they become elephants. Small caps are like kangaroos, they jump a lot but we cannot predict their movement.

So large caps provide stability to a portfolio, sometimes give good returns, sometimes average returns, sometimes no returns at all, but by and large there will not be any capital loss if one stays invested for some years. Small caps have the potential to give multi fold returns, become multibaggers, but are risky, as sometimes there will not be much information available about them, sometimes they are illiquid, there will be pump and dump. So some people choose mid caps instead, as they are proved businesses, still have a long way to go, so can compound at good rate.

Behind every stock, there is a company. So whatever you choose, study about the company, its business. Know about sales, margins, management, competition, debt etc.

Investing is completely opposite to trading regarding certain aspects, you cannot look at investing as a trader, it needs a different mind. A trader need not always look at the company, but an investor should, so think of investing as owning a small part of a real business, which it is.

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Thank a lot for the response .Now I am understanding the depth .

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I have just scratched the surface, I did not say anything deep, what I have said is the tip of the iceberg, the real rock in beneath the water.

Just like trading, you give your money to your opponents in investing too, stocks are valued at very high multiples for many reasons, after you buy, the price may fall and will take years to get back to the previous high price, this happens with even the biggest of the names.

And sometimes your opponents build long positions for many reasons, and after you buy, the price collapses, sometimes these are pump and dump stories, sometimes there will be a scam in the company. So the more the greed for huge returns, the harder the fall will be.

So whatever you do, go very slow, because there is a lot to learn for many years.

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Woow, what an explanation! Summerised whole answer in just 10 lines😯

Also, there are many self declared gods in the field of investment, who can predict very well the future of stocks😂.

Saavdhan rahe aese logo se🤨

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Sometimes even the managements of the company, the founders themselves cannot anticipate or predict their companies’ growth, even they fail to see how big their companies will become in the future.

But sometimes, there will be a clear visibility of the future, for a couple of years, for example, if a company is importing something to a foreign country, and there are orders for a couple of years, and no competition will come into the scene, so this company will enjoy great demand. And the market knows about this and the price goes up fast. This is not prediction, this is a visibility. This usually happens not just for one company but for a whole sector, and all the companies present in the sector will be in demand, examples are chemicals, metals etc. But this will not be permanent, this will not remain forever, because competition may come in the middle, or the demand may decrease in the foreign countries etc.

So visibility yes, prediction may not happen always.

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Right, there are many factors like news, buyback, increased dividands, history etc. What is needed that individual should use their minds while making any decision, many investers just almost blindly follow, they avoid to do hard work

That is correct.

Just like trading, investing involves hard work too, a different kind of hard work. Blind following may give returns if luck happens, but if there are people who want to cheat, then blind following will give capital losses. The more the greed, the more will be the loss with blind following.

Bina kuch jaan ke nivesh kiya to nuksaan ayega na. Nariyal samjha, aam khareeda, ghar gaya, phal toda, aam se paani nahi ayega na :grin:

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here is your answer