Search
+
    Invest with Confidence. Lead with Insights.
    • Drench in the knowledge with exclusive insights, ePaper & smart market tools with ETPrime.

    Taking risk and understanding risks are two different things: 5 smallcap stocks from different sectors

    Synopsis

    Risks are higher, but desire to own them is at the highest. This probably explains the current state of relationship between the small cap segment of the market and investors. One of the reasons for it could be the recent performance of small caps and the kind of return they have delivered in the last eight months. This has brought them in the category of stocks where the desire to own them is “highest”. But the fact which gets ignored in such conditions is that “risks” are also higher. Especially the market liquidity risk and the risk of corporate governance being thrown out of the window. There are many risks which are being ignored and largely because of one reason, the narrative and price action on the street. So, while you take risks, understand the risk and try to manage the risk.

    While it appears that the best place to make quick money at this point is the small cap segment of the market, the fact is that this space is full of challenges. Challenges because there are both strong tailwinds and headwinds in this space. Now let's look at the tailwind or what is commonly called positives or for small caps. Before that these tailwinds are not only for small caps but Indian equity as an asset class. Lower oil prices, softer
    • FONT SIZE
    • SAVE
    • PRINT
    • COMMENT
    ET

    Uh-oh! This is an exclusive story available for selected readers only.

    Worry not. You’re just a step away.

    Why ?

    • Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

    • Stock analysis. Market Research. Industry Trends on 4000+ Stocks

    • Clean experience with
      Minimal Ads
    • Comment & Engage with ET Prime community
    • Exclusive invites to Virtual Events with Industry Leaders
    • A trusted team of Journalists & Analysts who can best filter signal from noise
    • ​Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-​

    The Economic Times