Why invest in ASX Small Caps?
Investors start with Small Caps because of their huge growth potential. These shares can double, triple and more in value. You need a couple of Small Cap shares in your portfolio to double and triple to generate excellent financial results. It’s this outperformance that you simply can’t achieve anywhere else or with any other financial investment. Get:
- Huge share price growth potential
- Investors can start without a lot of money
Share Price Growth
You want strong performance from your investment. Share price growth is the primary reason to start investing in Small Caps because this will deliver you oustanding financial results.
But you can also earn income if they pay dividends
. 50% of the shares we recommend pay dividends. When small companies pay dividends it shows that the company is a quality investment and it represents an important price signal for the market.
Shares to buy under $5
Many small caps are cheap, costing under $5 to buy, so you can start small and build up a portfolio or group of shares over time.
You don’t need a lot of money so start investing in smaller shares. This is one of the key benefits. To buy $100 CBA shares at $85/share you need $8,500. But if you invested that money into a smaller company you could invest $2,000-$2,500 in 3-4 different shares giving you a bigger personal holding.
Small Caps also provide diversification at cheap prices. Diversification means reducing your risk by not putting all your investment eggs in one basket. You can buy of shares in well run companies that operate in many differnt types of growth industries, from corporate biotechs and mining, to australian health, smaller banks, pharma, energy companies or food producers.
There is a vibrant group of shares at the tail end of the ASX so investors can access exposure to different growth industries and varied risk profiles cheaply.
If you are looking for true share price growth, then growth stocks should be part of your personal balanced portfolio. Of course you need to consider your own financial situation or needs before you begin investing in this type of investment. Please see that you follow the right independent share research and services from a licensed provider with a proven track record of investment performance. See our investment performance over the last 10 years here. You don't choose a share because it's popular you need to follow quality advice and access information and reports that will give you education too. Receive our research and join now.