Multibagger Small / Mid Caps & Long Term Investing Report

Dear Reader,

We are experiencing lot of hopelessness along with fear towards equities in 2019.  The reason is the carnage in stock prices of many well-known established companies over last 18 months. Retail investors have taken the back foot and lost their faith and conviction towards investing in small and mid caps. We understand that it is really frustrating to see the Sensex and Nifty at all time highs while the BSE Small Cap and Mid Cap indices hovering at much lower levels compared to last year.

Since Jan 2018, Nifty and Sensex delivered positive returns of 10% and 8% respectively, BSE small cap index slumped 31%, while BSE mid cap index dropped 20%. Though these numbers tell us what the overall index lost, individual small and mid cap stocks were touching 52-week lows every other day and individual damage to most of the stocks in this category was to the tune of 50-60%, some even more than that.

Despite that we are quite excited about opportunities emerging in small and mid cap space. You may argue that most of small caps and mid caps have wiped out your hard earned gains over last 2 years. In fact those who invested in small and mid caps in past 2 years are sitting on significantly higher losses and may be thinking to stay away from them.

However, we beg to differ. We firmly believe that these are the opportune times to invest in broader markets and not in large caps. The negative sentiments around small and mid caps have brought excellent businesses down to historically low valuations. The fall in stock prices of many small caps and mid caps by more than 50% from their peaks has not happened for the first time. This has happened in past and companies with good business fundamentals have always bounced back strongly.

When overall market sentiments are negative like we are witnessing now, quality businesses also face the heat. As bad stocks go down, good stocks go down with them too. But good companies make a stronger come back once economy cycle starts its upturn. Though it was a combination of issues that affected the broader markets, we can largely peg this mayhem to 6 major reasons:

Coming back to the current situation, the BSE small cap index is down by 31% from its peak made in January 2018. The liquidity crisis in NBFCs, the DHFL and IL&FS defaults, series of rating downgrades by rating agencies, lenders dumping stocks of debt laden companies have taken the steam out of small caps. Fear and misinformation has shattered investor’s confidence and hence quality businesses are back to cheap valuations.

To ease NFBC liquidity crisis and get economy growth back on track, Government is in process of taking all possible corrective measures. In Budget 2019, Finance Minister Nirmala Sitharaman announced that the government will provide a one-time six months partial credit guarantee to public sector banks to buy high-rated pooled assets worth Rs 1 lakh crore from NBFCs. This will provide the much-needed liquidity to NBFCs, they can thus liquidate their portfolio and meet their liabilities in a timely manner.

Moreover, below are the few announcements made in the budget which certainly qualify as steps in the right direction.

• Recapitalisation of banks to the tune of INR 70,000 crores
• The Credit Guarantee Enhancement Corporation to be set up in FY20
• The action plan put in place to deepen the market for long-term bonds 
• 2% interest subvention for all GST registered MSMEs

The focused impetus for sustainable job creation via targeted investment in infrastructure will have a ripple effect on secondary and tertiary employment. Overall, it was an uneventful but visionary budget marked with a long-term 10-year plan while retaining focus on immediate priorities.

We strongly believe that this is a great time to buy good quality small and mid size companies that have been beaten down. No one is talking about small caps these days and that’s the strong reason why we should invest in this segment. It’s wise to be greedy when there is fear surrounding small and mid caps. This is not the first time small caps have fallen out of favour and then gone on to recover smartly.

Staying invested may be easier said than done when the markets are in bear grip, but it is a necessity for long-term wealth creation. Patience will pay rich dividends to those investors who learn to weather the storm. In fact, investments made in right set of companies during bad market conditions rewards long term investors in much bigger way.

To make our readers understand the benefits of investing in small caps and mid caps during bad times like we are experiencing now, we have released - Multibagger Small / Mid Caps and Long Term Investing Report recently on 10th July 2019. 

The objective of this report is to make our members understand why its utmost important to invest in equities keeping a real long term view and becoming a discipline investor by investing in equities during good as well as bad times. We are confident that this report will reinforce your believe to stay invested during these turbulent times in broader markets and build your conviction further encouraging you to invest in small and mid caps with good business fundamentals.

Broadly, Multibagger Small / Mid Caps & Long Term Investing report covers:

1. 6 Major Reasons for Decline in Small & Mid Caps
2. Budget 2019 - Steps towards easing Liquidity Crisis
3. Benefits on Investing in Small & Mid Caps during Bear Phase
4. The Bulls, The Bears & The Farm
5. Long Term Charts of Small & Mid Caps (Hidden Gems & Value Picks stocks)
6. Release of Special Report - Potential 5-Bagger in 5 Years in July 2019

To receive our Multibagger Small / Mid Caps and Long Term Investing report, simply fill up the form below. Once submitted, you will receive the report directly in your inbox. 

If you are unable to view the form, click here to fill it online to receive our Multibagger Small / Mid Caps & Long Term Investing report directly in your inbox.

BSE Small Cap Index went up by 69% in 2014 and during this year numerous small and mid cap stocks turned multibagger delivering mind boggling returns. Scenario was similar in 2017 when BSE Small Cap Index rallied by 58%, later broader market went into bear grip with significant sell off in many small and mid caps due to expensive valuations and series of negatives developments as pointed out earlier.

The  correction has given investors an opportunity to sieve through and find good quality stocks which are backed by strong balance-sheet and robust cash flow. The broad underperformance of the small and mid-caps seems to be overdone and interesting bottom-up opportunities are now available in this space across sectors. Earnings revival could also set the ball rolling in terms of re-rating these categories of stocks.

Under this report, while looking at long term charts of the companies with good businesses, you will realise that investors who entered in market by investing in small and mid caps during last 2 to 3 years have pain in their portfolio however those who invested in bad phase of market in 2011 - 2013 like that of today are still holding plenty of multibaggers in their portfolio. That is why its important to invest in equities keeping a real long term view. In fact, during turbulent times, we must increase investments / equity allocation in small / mid size companies which have good business fundamentals to get rewarded in big way in long run.

Stay Invested & Keep Investing for Real Long Term. Bcoz "If you want your Money to Grow, Equities is the only Way to Go"

We are pleased to inform you that you can grab discount upto 30% and valuable freebies on our subscription services under Saral Gyan 9th Anniversary Offer. We suggest our members to consider current situation (post severe correction in small & mid caps over last 18 months) as a buying opportunity and invest in high quality small and mid cap stocks.

Discounts & valuable freebies which make our 9th Anniversary special for all our readers are as under:

1. Maximum discount up to 30% on combo pack subscriptions
2. Hidden Gems Flash Back Report - Released on 30th April 19
3. Value Picks Flash Back Report - To be released in Aug'19
4. 5 Stocks - Potential 5-Baggers in 5 Years Report Update - To be released in Jul'19
5. Existing Portfolio Health Check Up under Wealth-Builder subscription 
6. Saral Gyan eBook - "How to Grow your Savings?" worth Rs. 599 for Free.

Below table indicates subscription services and discounted prices valid up to 31st July'19.

Saral Gyan 9th Anniversary Offer 

SARAL GYAN SUBSCRIPTION SERVICE	9TH ANNIVERSARY OFFER DISCOUNTED PRICE	PAY ONLINE  CARD / NET BANKING
Hidden Gems	Rs. 10,000 9,000	SUBSCRIBE!
Value Picks	Rs. 6,000 5,400	SUBSCRIBE!
Wealth-Builder	Rs. 20,000 18,000	SUBSCRIBE!
Combo 1: HG + VP + WB + 15%	Rs. 40,000 28,000	SUBSCRIBE!
Combo 2: HG + VP + 15%	Rs. 20,000 15,000	SUBSCRIBE!
Combo 3: HG + VP	Rs. 16,000 13,000	SUBSCRIBE!
Combo 4: HG + 15%	Rs. 14,000 11,500	SUBSCRIBE!
Combo 5: VP + 15%	Rs. 10,000 8,500	SUBSCRIBE!

Simply choose the subscription service / combo pack you would like to opt and click on SUBSCRIBE! link in above table to make online payment using your debit / credit card or net banking facility. In case if you are not comfortable in making online payment, click here to know about our other payment options and bank details.

Click here to know more about Saral Gyan 9th Anniversary Offer.

Do write to us in case of any queries, we will be delighted to assist you!

Regards, 

Team - Saral Gyan