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What is the best market cap for growth?
I'm quite curious with what market cap is best for growth at a young age? I have a Fidelity Brokerage and I currently am invested in a small cap index, mid cap index, large cap index, S&P 500 Index, and total market index. Reason why I am bringing this up is I feel like I have my money overlapping each other in all of the index funds, meanwhile if I just have invested in two or three with a larger sum of money due to selling the other funds, then I would be making more money instead of missing out on the potential gains. If someone has enough information, please feel free to let me know. Like I said before, I want to invest in a market cap that will provide the most return. If the total market covers the three individual market caps, then what route should I go for the most return?
4 Answers
- kswck2Lv 73 months ago
The growth of company is for you IF it goes along the same route as YOU are interested in. It is not the same for ALL people.
- ?Lv 63 months ago
A small, mid and large cap will all grow if they are worth investing in. The question for you is if they move as quick and as much as youd like to? Ask yourself if the stock is going to double, triple or even more in the time frame you have set. We dont have to settle for less than a double if we choose to. I dont invest in funds. Only individual stocks. Look at an earnings release calendar, scroll the stocks and look at the market cap of each one. Pick some stocks that you may be interested in and see how their market cap correlates to their price. If they are in the price range you like to invest in, look at their fundamentals and decide if they are worthy of investing in or not. Of course not every stock performs the same and we are never guaranteed the great return that another stock would have given us. Thats just the nature of stocks. You win some and you lose some. You have to choose and live with your choice. I know what works for me. You will have to learn what works best for you.
- AnonymousLv 73 months ago
In theory, small cap stocks are better able to sustain high growth rates. That being said, other factors such as valuation and overall quality of the business are more important.
I've gone through lists of companies that small cap funds are invested in and I see a lot of overvalued and low quality junk. There are only a handful of small cap companies that meet my quality standards out of all the research I've done. You are much better off with an undervalued quality large cap stock than an overvalued and questionable small cap stock. If I were to buy a market cap themed fund, I would buy a new S and P 500 fund and add an all cap or small and mid cap fund on the side.
- Anonymous3 months ago
You sound overdiversified. The thing about these is NOBODY knows in advance what will perform best in the future.
Its a crapshoot in some ways.
Small cap value used to outperform but they have been underperforming for a long time now. You pays your money and you take your chances.
