Investors looking to build a diversified portfolio must consider including mid and small-cap stocks. These stocks, which have a market capitalization lower than large-cap stocks, offer unique benefits and growth potential. By investing in mid and smallcaps, investors can gain exposure to a broader range of industries, sectors, and potentially higher returns. Radhika Gupta, an expert in the field, emphasizes the importance of mid and smallcaps in capturing the vast investment opportunities present in India’s growing economy. She explains how these stocks provide diversification benefits and can outperform larger companies over the long term. Furthermore, Gupta highlights that mid and smallcaps offer exposure to emerging sectors and innovative companies that have the potential to become tomorrow’s market leaders. However, investing in mid and smallcaps also comes with its own risks, such as higher volatility and liquidity concerns. Therefore, proper research, due diligence, and a long-term investment horizon are essential when considering these stocks. In conclusion, mid and small-cap stocks play a crucial role in a well-rounded investment portfolio by providing diversification, exposure to emerging sectors, and the opportunity for higher returns.
