For all those who are thinking of increasing their exposure to small cap stocks as nifty brings back the feeling all is well is back on the street. There is a principle to remember, they are first to fall and last to rise.
It is not the first time, but for decade’s this has been the trend and there is a reason for it to happen. In any economic down trend, the small size balance tends to come under pressure more than large size balance sheets.
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