Carefully chosen microcap stocks with disruptive business models have the potential to demonstrate rapid growth and provide multibagger returns
In AMFI’s latest half-yearly rebalance of stocks, 23 stocks that were ranked below 500 in terms of market capitalisation have now graduated to become small-caps; ranked between 251 and 500
Active fund managers are preferably adding mid-, small- and micro- cap segment of pharmaceutical and healthcare businesses
Micro-cap stocks can turn multibaggers if fund managers choose them wisely. But sometimes, stock picks don’t go according to plan. These micro-cap stocks were shunned by mutual funds in the last 3 months
Quality microcap stocks have the potential to outperform over the long term. Despite market highs, Flexicap mutual funds can add small- and micro-cap stocks due to the flexibility
Seven stocks that were microcaps have been reclassified as midcap stocks over the last four years, as per AMFIs’ January 2024 classification rejig. Fund managers identified five of them to be in the early stage of their growth cycle and invested in them
Investing in micro-cap stocks can offer potential rewards, but it also comes with several risks that investors should be aware of. Nirav Karkera, Head of Research at Fisdom, tells us about what the micro-cap valuations are hinting at and how funds can manage the risks in micro-cap funds. Listen in
On a year-to-date (YTD) basis, the stock of this micro-cap company surged 5 percent versus a 10 percent rise in the benchmark Sensex. The market capitalisation of the company stood at Rs 454 crore
Motilal Oswal Nifty Microcap 250 Index Fund, which mimics Nifty Microcap 250 Index, is designed to measure the performance of the top 250 companies, excluding those already present in the Nifty 500 constituents.
Micro-caps in India often fly under the radar of research analysts, with more than 40 percent of companies receiving no analyst coverage at all and only 12 percent of the stocks having coverage by more than five analysts.
Earlier instances of bull markets in broader equities have seen microcap earnings yield spread over largecaps drop to near-zero versus current spread of 150-200 bps
Over the last three years, the Nifty Microcap 250 Index has delivered 58 percent on an annualised basis. But this segment comes with its own set of risks and challenges.
Microcap stocks are quite risky but potential multibaggers if they are picked with care and backed by good research
Shares of companies ranked below 500 are mostly under-researched and smallcap and microcap stocks. The lack of liquidity is more than made up by exceptional returns if the fund manager can correctly identify potential winners. Here are the most favourite holdings among active mutual fund managers
Despite illiquidity that plagues tiny companies on stock exchanges, especially micro-cap stocks, fund managers often go fishing at the bottom of the barrel. It’s a risky strategy, but if the picks work, they can become multibaggers
A high-risk, high-return strategy, microcap stocks are those whose market-capitalisation falls below Rs 3,000 crore. If picked with care and backed by good research, these stocks can give a big kicker in returns. And market correction presents a good opportunity to do quality picking.
Small and microcap indices fell much less than their mid and large-cap counterparts
The NIFTY Microcap 250 TRI registered a spectacular show by gaining 310 percent from its March 2020 lows
Equity mutual funds rewarded investors handsomely