Their funds are so massive that buying a smaller company has little effect on their bottom line. Small cap stocks are great because their is less competition from institutional investors. Choosing the right stock is the key to investing in smaller stocks. On other hand, a smaller company can double its market cap many times over as they come into their own. Its just not possible for bigger companies to grow as fast because they would eventually become unsustainably large. The reason these smaller stocks are able to grow so fast is that they still have a relatively low market capitalization. Invest in the right small cap stock and that could be you. You hear all the time about people who invested relatively small sums into tech companies like GOOGLE and made ridiculous amounts of money. One of the best attributes of small cap stocks is that they have great growth potential. These companies aren't your big fish that everyone has heard of, but can offer great returns in their own right.
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IL&FS Engineering and Construction, Regency Trust, Macro International, Madhusudan Securities and Luharuka Media & Infra are among the remaining penny stocks that turned multibaggers during the said period. Swiss Military Consumer, Corporate Courier & Cargo, Triveni Glass, Tranway Tech, Innovative Ideals & Services, Nikki Global Finance and Biogen Pharmachem Industries have gained more than 120 per cent this year so far. Kiran Syntex, Hemang Resources, MPS Infotecnics and Elegant Floriculture & Agrotech (India) are some of the other stocks which delivered between 270-370 per cent returns to investors. They are followed by IT player BLS Infotech and textile firm Khoobsurat, which have gained 646 per cent and 586 per cent, respectively during the period under review.