What Are Small-Cap Stocks & Why Are They Risky?

Understanding Small-Cap Stocks

– Market cap usually under ₹5,000 crore.
Often in early stages of growth.

Why Investors Choose Small-Caps

– Faster Growth: Can scale quickly in favorable markets.
Hidden Gems: Often under-researched and undervalued.

The Risks of Small-Cap Investing

– Price Swings: Sensitive to market sentiment.
Lower Liquidity: Harder to enter or exit positions.

How to Manage Small-Cap Risks

– Diversify Portfolio: Don’t go all-in on small-caps.
Do Deep Research: Understand company fundamentals.

Investment Insights

– Early-stage industry with massive long-term potential.
– Backed by global & Indian government incentives.