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Why Invest in Small Cap Stocks?

Small Cap Stocks will boost your investment returns.

It's much easier for a small company to double or triple in size than for a big company to grow by 5 or 10%.

ASX Small Caps will give you the growth you need

You simply can't achieve the kinds of gains in other investments that you can in ASX listed Small Cap stocks.

The share market goes up and down, and historically it rises more than it falls in seven out of ten years. On average, you can expect returns of 10.5% a year. Small Cap stocks will give you true growth and really boost your returns. 

  • To access this week's Best Small Cap Stocks to Buy, start your 14 day free trial now.

Small Caps versus Blue Chip Stocks

Blue Chip stocks like the banks, Telstra and other internet companies pre Covid-19 were trading at record high levels. Subsequently monetary stimulus has encouraged buying in many, which has lifted global indexes to within spitting distance of the previous levels. Investors are confident that their earnings will appreciate, delivering growing dividend income. However, these companies have high “price risk”. If there is any softening of their earnings growth, which is inevitable in the new environment where there is much less certainty about the future, their share prices are extremely vulnerable to another wave of sustained selling.

Why you need Small Cap research

In contrast, what you see with Small Cap Stocks, is “information risk”. The companies are too small for the big brokers to invest in so there is not the research around. Also, with these Small Cap stocks, the company's historic earnings performance can often bear little resemblance to their future earnings and so you need quality research before you invest in them.

Why invest in Small Caps?

Our annualised average return over all our 100+ small cap stock tips is over 50 per cent and this includes some real duds, but it also includes stocks like Sirtex Medical or Select Harvests that have tripled in value and more. At Under the Radar Report, we look for value, which means a small cap stock that is covering its costs but has an option on greatness. You can’t find these types of investments anywhere else.

Case Study:
What Small Caps can do for your Portfolio

Our editors family invested $70,000 into a Small Cap silver and gold miner Bolnisi Gold with operations in Mexico. They invested at 9 cents and below between December 1996 and October 2003.  Less than four years later the Small Cap company merged with Coeur d’Alene Mines and is now the world’s largest listed primary silver producer. Its stock rose to $3.27 by June 2007, making their family $1.5m.
 
Small Cap Stocks really can grow a portfolio as seen here with Bolnisi Gold. Small Cap Stocks can be at the risky end of the investment spectrum which is why you need to undertake thorough analysis of their sustainable earnings and balance sheets. This is where Under the Radar Report comes in.
 
Learn more about our case studies

We do all the research so you don’t have to

At Under the Radar Report, we provide you with independent, institutional grade stock research, and show you exactly how to structure a portfolio. We help you choose Small Cap stocks for your portfolio and we are delivering strong returns for our subscribers.
 
We recommend structuring your share portfolio clearly and that up to 25% of your portfolio should be invested across 7-10 small cap stocks to diversify your portfolio and position it for growth. Our weekly Small Cap stock report provides you with ongoing updates advising you when to Buy, Hold and Sell.

Start investing in ASX Small Caps today

If you want an edge in your portfolio, Small Cap stocks will provide you with real growth.

Start investing now in ASX Small Caps. Access this week's 10 best stocks to buy and access your free trial now for 14 days.

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