{Discussion} (1lakh ₹ ) which is good small cap, midcap or large cap for long term investment (2-3 year)

I am new to stock market.

I want to invest my 100000. For long term (approx 2,3 year)

I am considering fundamental analysis for this.

Roce >15%
Debt to equity <. 5
Return on asset >20%
Promoter holding >40
Eps should increase.
Roe>20
Opm>20
Current ratio >1

Is this good.

Or should i Check other parameters?

Now one problem is that should i consider small cap and midcap stock. (because they give high return)

@Himangshu welcome to Dhan community :innocent:

@KunalShah do share your thoughts on this!

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Please give me some advice

Look at people behind the business. Good people - management / team form the core and necessary condition to generate good numbers.

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Personal Opinion:
I generally avoid betting on smaller and mid-sized companies due to the demanding research involved. To make informed choices, one needs a strong connection to the industry and the company itself, which is why I opt for Mutual Funds in this segment. Over the past 8 years, I’ve never regretted this decision; my small and mid-cap funds have yielded impressive returns.

For a broader perspective, I recommend reading DSP Netra, which gets updated in the first week of every month. The most recent version can be found at https://www.dspim.com/latest-literature/netra-december-2023.pdf.

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Hi,

We ran this query for you and got the following screened stocks (54 meeting the criteria mentioned above).

Screened Stocks

However, since you are starting to invest with a capital amount of 1,00,000; mutual funds or ETFs would make more sense, that too in a staggered manner given the valuations at which the markets are. Talking about this, we just went live with Mutual Funds on Dhan’s platform and now you can screen the right mutual fund for yourself and start investing there.

Best,
Kunal

Very true. Harvard MBAs are struggling to beat the index. So what chance does mortals like me have with getting and processing all the information out there and then make the market beating investment decision…:sweat_smile:

@GalaticX @Himangshu

May be you know. But for the benefit of someone who doesn’t here is an article on an interesting experiment

Also, a stock like Reliance was like a dead dodo for a decade before it finally broke out. Whatever we do nothing is certain in market just like in life.

Besides am not a great fan of investing when the market is at ATH. I am in the process of liquidating my ELSS infact :sweat_smile:. In a bull market even kachra will fly. Only the good ones come out flying from a bear market. Over 300 yrs of capitalism has had a crash every decade on an average. After covid crash something else may be waiting in the future for triggering the next bear market and that could be a better investing opportunity.

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Everyone has their own way to do investments.

Personally for me, portfolio has 14 multibaggers (7 are > 200%; 7 are > 100% and 10 are > 50%) - most are large & mid caps. Invest largely in sectors I believe will grow and then mix of leaders and upcoming leaders in those.

I buy and very very rarely sell. Last portfolio rebalancing was in April 2020; so technically this portfolio is build in last 3.5 years. Also I don’t think 2-3 years is long term, my view is for 6-8 years.

Only thing that changed for me post my rebalancing in April 2020 is - earlier I use to average the stocks that were going down in portfolio, now I average ones that go up. I will review for rebalancing now in Feb / March, which is largely for tax-loss harvesting.

Ps: This is not an investment advice or recommendation. And word of caution: You should never trust investment suggestions of your broker :slight_smile:

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hi thank you for your comment… i hope all dhan user will get some knowledge here