STOCK INVESTMENT

Which is best… Large Cap or Mid Cap Stocks…?

The success in investment lies in which stock we are investing. Investing in large cap stocks preserves one’s investment. It will give 20-30% return per year in average. It is a good return compare with any other investment avenues like bank fixed deposits, PPF and post office saving schemes. But if one really wants to become rich in their life through investment, then they need to take some risk. Risk is highly associated with rewards. Investment in Mid cap or good Small cap companies will give good yield in future. We need to choose carefully the mid cap or small cap. Because we can’t assure that particular stocks will grow in future. Still, those who have small or mid cap stocks in their portfolios will have good returns over the period of time. These investments will yield 400-2000% returns in 2-3 years.
So, one should invest at least 60-70% of their money in good small and mid caps stocks to become rich in life.