Mid-cap marvels

Small-cap stocks are where the brave go. We get their charm, too. There's the promise of explosive returns and the vivid success stories that play into one's cognitive bias. But what investors, wearing their rose-tinted glasses, forget is that unguarded bravery often exacts a heavy cost. It thus helps to remember that while small caps are often romanticised due to the handful that become multibaggers, the high-fliers are actually few and far between. Couple that with their steep risks like the unproven business models and low liquidity, and the skewed trade-off becomes more apparent.