Why should you invest in this smallcase?
Growth companies experience positive earnings and cash flows, while growing at a rate faster than the overall economy.
- Generally, growth companies have a lot of investment opportunities to reinvest their earnings and not pay dividends. Fast growing business and rising earnings allow them to command high valuations
- But, everything has a fair price and irrespective of the quality of the product, one should never overpay. This rule is applicable in the case of growth companies as well
- Such companies are good investment opportunities, however because of their high valuations, it is difficult to judge whether they are fairly priced
- This smallcase is a collection of companies experiencing earnings growth and, witnessing margin improvement.
- In addition, only the companies experiencing increasing return on capital, and available at justifiable valuations are selected
A low-cost version of this smallcase without high-priced stocks is also available here
Past PerformancePerformance vs
Current value of Returns on ₹ 100 invested once 4 years ago would beare