How Investing in Small Cap Stocks lead to Wealth Creation?

Dear Reader,

Do you know small investment of Rs. 10,000 a month over a period of 10 years can help you create a corpus of Rs. 25 lakhs. Total amount invested over period of 10 years by you will be Rs. 12 lakhs and you will have profit of Rs. 13 lakhs. Not Good? This might look less to you as we are assuming returns of 13.5% per annum. If we assume returns of 27% per annum, your corpus will be Rs. 50 lakh and your profits would be more than 3 times of your actual investments that too when you are investing a nominal amount of Rs. 10,000 on monthly basis. Impressive! Right?

You might think that investing in mutual funds could be one of the way to start SIP (Systematic Investment Plan). However, returns may not be that high which you can generate by directly investing into good quality small and mid cap stocks. Hence, we suggest our members to start SIP by directly investing in stocks every month. What you are suppose to do is to invest your savings in a particular stock once in a month instead of putting it into mutual fund. Next month, same amount would be invested in another stock which at that point of time gives you good medium to long term investment opportunity. This could be an ideal choice for salaried employees as well as businessmen / entrepreneurs, as it will help you to directly invest in fundamentally strong small and mid cap companies to build a diversified portfolio of high quality small and mid cap stocks over a period of time to achieve wealth creation.

Also Read: Techno-Funda Stock Pick 2019 Report - Free Download

Also Read: Facts of Investing in Small & Micro Cap Companies

Investing in small caps is a great way to build your diversified investment portfolio. It is a simple and time tested approach for accumulation of wealth in a disciplined manner. Simply get some savings from your monthly income and invest in stocks for long term. It not only allows you to save every month in a disciplined way but also help you ride through ups and downs of stock market.

Invest some portion of your monthly income in good companies without timing the stock market and you will definitely get rewarded in long run. In fact, post severe correction witnessed in small and mid caps during last 1.5 years, we are confident that small & mid cap companies backed by good fundamentals will deliver far superior returns compared to large cap stocks in coming years.

Just take care of Basic Principle of Investing in Equities:

1. Invest in stock market with a long term view (3 - 7 years or more).

2. Invest in companies which are fundamentally strong with scalable business.

3. Follow disciplined approach by Investing regularly in equities.

4. Build a diversified portfolio by investing in small & mid cap companies.

5. Avoid frequent buying / selling of stocks, Its trading not Investing!

6. Review performance of your holding companies at least once a year to decide whether to buy / sell or hold.

Hidden Gems - SIP Returns @ 112.7% Vs Small Cap Index Returns @ 44.9%

It gives us immense pleasure to share that average returns of Saral Gyan 87 Hidden Gems stocks (Our Unexplored Multibagger Small Caps) released since inception (from Sept 2010 to Dec 2018) during last 9 years is 112.7% compared to 44.9% returns of BSE Small Cap Index. Monthly investment of Rs. 10,000 in Hidden Gems till Dec'18 during last 9 years not only allowed you to save Rs. 8.7 lakh but also appreciated your investment by more than 100% making your total Hidden Gems stocks portfolio of Rs. 18.5 lakh with overall profit of Rs. 9.8 lakh. However, if you would have invested the same amount in Small Cap index, you would be sitting with overall gains of Rs. 3.9 lakh.

Below is our Multibagger Stocks - Hidden Gems performance scorecard since inception  (from Sept 2010 to Dec 2018) which illustrates value of Rs. 10,000 invested every month in Hidden Gem (Unexplored Multibagger Small Cap Stocks) stock of the month vis a vis value of Rs. 10,000 invested in BSE Small Cap Index during last 9 years as on 04th July'19.
Even after severe correction in small cap stocks during last 18 months, 31 Hidden Gems stocks out of 87 released on monthly basis from Sept 2010 are giving more than 100% returns to our members. Moreover, 23 stocks out of these 31 are giving returns in the range of 150% to 1800%. In fact, we advised to book partial or full profits / exits in many of these stocks at higher levels during last couple of years.

Note: Total 87 Hidden Gems stocks were released (from Sept 2010 to Dec 2018) during 100 months, we have not released Hidden Gems for the months not displayed in the table above. 

As we made most of these reports public, you can access read / download our research reports by clicking on the Read / Download link:

1. SAB TV NETWORK >>> Rec. Date: 05 Sep'10 >>> ROI: 890% >>> Read / Download

2. DE NORA >>> Rec. Date: 07 Nov'10 >>> ROI: 213% >>> Read / Download

3. CAMLIN FINE >>> Rec. Date: 27 Mar'11 >>> ROI: 866% >>> Read / Download
4. WIM PLAST >>> Rec. Date: 30 Aug'11 >>> ROI: 401% >>> Read / Download
6. CERA SANITARY >>> Rec. Date: 24 Dec'11 >>> ROI: 1782% >>> Read / Download

7. INDAG RUBBER >>> Rec. Date: 29 Jan'12 >>> ROI: 161% >>> Read / Download
8. MAYUR UNIQ. >>> Rec. Date: 31 Mar'12 >>> ROI: 383% >>> Read / Download

9. PREMIER EXPLO. >>> Rec. Date: 22 Jul'12 >>> ROI: 177% >>> Read / Download
10. ROTO PUMPS >>> Rec. Date: 05 Aug'12 >>> ROI: 638% >>> Read / Download

12. ACRYSIL >>> Rec. Date: 25 Nov'12 >>> ROI: 367% >>> Read / Download

13. BAMBINO AGRO >>> Rec. Date: 25 Dec'12 >>> ROI: 214% >>> Read / Download

14. TCPL PACKAGING >>> Rec. Date: 31 Jan'13 >>> ROI: 379% >>> Read / Download

15. ATUL AUTO >>> Rec. Date: 28 Feb'14 >>> ROI: 101% >>> Read / Download

16. RANE BRAKE >>> Rec. Date: 31 May'14 >>> ROI: 220% >>> Read / Download

17. DYNEMIC PROD. >>> Rec. Date: 29 Jul'14 >>> ROI: 149% >>> Read / Download

18. ASIAN GRANITO >>> Rec. Date: 29 Sep'14 >>> ROI: 146% >>> Read / Download

19. CONTROL PRINT >>> Rec. Date: 30 Nov'14 >>> ROI: 46% >>> Read / Download

20. PLASTIBLENDS >>> Rec. Date: 31 Jan'15 >>> ROI: 61% >>> Read / Download

21. MOLD-TEK PACK >>> Rec. Date: 22 Mar'15 >>> ROI: 150% >>> Read / Download
22. CHEMFAB ALKAL. >>> Rec. Date: 06 Sep'15 >>> ROI: 156% >>> Read / Download

23. ULTRAMARINE >>> Rec. Date: 11 Oct'15 >>> ROI: 134% >>> Read / Download

24. STYLAM IND. >>> Rec. Date: 08 May'16 >>> ROI: 199% >>> Read / Download

We are confident that we will continue to hunt best Hidden Gems from universe of small caps by doing authentic, in-depth and unbiased research work and support our members to make educated investment decision.

Through Hidden Gems and Value Picks, we are providing you opportunities to invest in such small / mid cap stocks today. Infosys, Dabur, Glenmark, Bajaj Finance were the small cap stocks in past and today are the well known companies falling under mid and large cap space.

The stocks we reveal through Hidden Gems & Value Picks are companies that are either under-researched or not covered by other brokers and research firms. We keep on updating our subscribers on our past recommendations suggesting them whether to hold / buy or sell stocks on the basis of company's performance and future growth outlook.