An Emergent Opportunity

Could smaller businesses be on the cusp of becoming the next big money spinner for the Indian equity investor? There are a number of indications that this may well be the case. On the aggregate level, smaller companies tend to outperform larger companies. Over a long period, globally, this is clearly visible in the movements of indices like the MSCI World Indices. Can Indian investors exploit this opportunity? Can they identify the right way of doing so. Let's examine the issue in greater detail. Generally, Indian investors have tended not to approach equity and equity fund investing from this perspective. When they have to evaluate equities or equity-backed investments like mutual funds, many investors make the mistake of focussing too much on which sector or industry a company operates in, and focussing too little on company size. This often results in inv

This article was originally published on April 25, 2014.