Large Cap for Stability Only

When people want to get rich using Stock Market, Large Cap is not for them because large mainly provides the stability to them, it will not give the returns to make you rich or wealthy. But the only thing is that using a Large Cap losing a lot of money is not possible just like gaining a lot of wealth is not possible. People who want to create wealth in Stock Market should go beyond Large Cap and get Small Cap and Mid Cap.

PC: Pexels.com

Let's take an example of one small cap fund named IRFC, as you can see in the last 6 months it has given returns of more than 50% whereas in just last month it has given a return of 33% which is huge if we check the price of it. Someone buying a share and getting 33% returns in one month is truly a great way to increase your wealth.

PC: Google.Com

But the problem is these shares can go down too, very fast and this is where the entry and exit are very important in small-cap and mid-cap and this is the reason people who do not have time usually go with Large Cap where they just buy and forget for 6 months and then come to rebalance the portfolio. To overcome this, I have tried to change my stance and try to buy mostly the mutual fund so that I continue generating that sweet 10-12% returns. But I try to play with the stock market too and keep some money there just to see if my thinking is correct or not.

And along with that, there is IPO also where I try my luck to get hold of some shares at the time of issue only to get some returns at that time. So yeah try to get some large Cap for stability and get some small-cap and mid-cap for returns but do try to plan your exit properly.

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