Why should you invest in this smallcase?
Growth companies experiencing positive earnings growth and having a reasonable margin of safety, 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
Past Performance vs
Mar 3, 2014
Note: Past performance graph includes changes due to rebalance, events like stock splits & mergers. Also, past performance doesn't guarantee future returns