Small Caps: Where the Odds Actually Lie
Series: #PFTidbits by Kannan M. 1
Small caps aren’t for the faint-hearted.
But it’s not just about the risk — it’s about who’s taking it and how.
Over a 10-year period:
✅ 97% of Small Cap Mutual Funds gave positive returns
❌ Only 35.6% of Retail Stock Picks did
That’s not a small gap — it’s a wake-up call.
Retail investors often enter small caps through hearsay, WhatsApp tips, or YouTube hype. The result? Poor stock selection, mistimed exits, and no review framework.
In contrast, MFs—despite volatility—offer:
Research-backed entry
Portfolio curation
Long-term conviction and course correction
📈 This chart says it all:
🎥 Further Reading & Watching:
📹 My Video: Stocks vs Mutual Funds – What's Right for You?
📝 Previous article: Direct Stocks vs Mutual Funds – What Most Investors Miss
📕 Book: Demystifying SIPs for Financial Freedom – Amazon India
🧠 Part of PF Tidbits — quick, data-backed personal finance reads curated by a practitioner.
— Kannan M.
Mutual fund returns are subject to market risk
#SmallCapInvesting #MutualFundsVsStocks #InvestmentTips #RetailInvesting #PersonalFinance #MutualFundReturns #StockMarketIndia #FinancialFreedom #PFTidbits #KannanM
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