Small-Caps & Mid-Caps: Too Hot to Handle? | Dhirendra Kumar’s Expert Insights | Value Research

In this episode of Investors' Hangout, Dhirendra Kumar breaks down the explosive growth of small-cap and mid-cap stocks and explores whether this market rally is sustainable. Are these high-risk investments worth the reward? Dhirendra offers insights on how individual investors can navigate the risks, identify high-quality funds, and decide if now is the right time to invest. He shares practical tips on portfolio allocation and how to handle market corrections with a long-term mindset.

Don’t miss out on this valuable discussion for both new and experienced investors! Whether you're considering small-cap funds or looking for a safer investment route, this video will help you make informed decisions.
Chapters:
00:04 Introduction
00:36 What factors drive the exceptional returns rally in small-cap and mid-cap stocks?
01:57 How sustainable is the rally in the current economic and market environment?
03:20 What are the biggest risks investors should know, and how can they mitigate them?
06:50 How should investors select the funds that best suit their needs?
07:34 How much of an investor's portfolio should ideally be allocated to small- and mid-cap funds?
11:34 Viewers' Question
13:18 Closing
13:26 Key Takeaways:
1. Resilience of Small and Mid-Caps: Strong participation from individual investors drives small-cap growth but also increases volatility.
2. Biggest Risks: Small companies are more vulnerable to market cycles and may struggle to sustain rapid growth if their business model isn't scalable.
3. How to Choose the Right Funds: Look for funds with a proven track record of outperformance over 3-5 years and diversified exposure to small-cap stocks.
4. Risk Tolerance and Experience: Allocate to small-cap and mid-cap funds based on your risk tolerance and long-term investment experience, as these funds are more volatile than large-caps.
5. Avoid Small-Caps for Short-Term Money: Avoid investing money you'll need in 2-4 years in small-cap funds due to their volatility.
6. Optimism and Investor Inflows: Despite the risks, ongoing optimism and strong inflows from individual investors will likely continue supporting small-cap growth in the near term.

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Thanks for Watching - Small-Caps & Mid-Caps: Too Hot to Handle? | Dhirendra Kumar’s Expert Insights | Value Research

[rknathwani]

Ruchira Madam, this is an excellent information on small and mid cap fund investments. Dhirendra sir has elaborately explained when and who should not invest in these funds. A simple and straightforward talk to easily understand. 👌

[NovaBHim]

10:40 👍Need more coverage for this class.

[iamcoolinmay]

Pearls of wisdom...the experience of 2008 crash is unparalleled...

[manojsuri]

Market dynamics have changed. Mid caps and small caps seem to have better downside protection now than large caps. Things are not the same as it used to be in 2008 which I have closely seen.

[prakashraghunathan]

Thankyou Dhirnder sir and Ruchira madam.

[yugandharreddynalabolu]

Thank you for your nice explanation...

[TheRealMINDR]

Dhiren Sir listening to you calms my mind and I'm able to make much better informed decisions! I joined the equity market in September during the peak and have seen and dealt with the recent consolidations well! Thank you 🙏

[nagendraprasadashwath]

Appreciate if you can share your view on small and mid cap index funds

[daspragmatic]

nice discussion on small and midcap mf and stock strategy, thanks

[shivani-hnun]

He was not a big fan to invest much in mid and small cap earlier. As they performed well now, his view is changed.

[dayakarganta]

Sir,
Please make a video on smart beta fund / ETF investing.

[TheRealMINDR]

A quick question if Small cap companies or their respective industries saturate the growth shouldn't we invest in small caps for smaller horizons say 3 to 5 years?

[everestnd]

Dheeraj, u r the best.... Your the last advice in this episode

[jishnu]

Ignore all noise and I think it will be better to put into a small cap, midcap, NN50 and N50 index with 35% in N50, 25% NN50, 20% in midcap index and 20% in small cap index

[bharatfoodie]

Sir at times, you say invest in 4-5 funds in total. Now you are advocating 2 small caps and 2 mid cap funds. I am not sure why change of view really.

[mdisha]

This man only scared investigators, he him self has invested in Small and mid cap, but he doesn't want any other investigators to invest here

[SenthilKumar_Coimbatore]

Yesterday smallcap stock is today largecap. Titan was trading at 3 rupees. Wealth will create only in smallcap space. But these guys will promote only largecap only.