The emerging Asian markets, including Chinaand India, are presenting new and exciting opportunities for investments in Mid-Cap securities. At the same time investors might be wondering which shares to buy and which shares to sell. A good place to look is undoubtedly India.
India is believed to be the fastest growing economy in the world; and the third largest economy after the United States and China. In addition, according to Finance and Development, a quarterly magazine of the IMF, India is among ten of the largest economies contributing more than 35% of the world GDP.
India’s young workforce — 25 years or even younger — is expected to be the ones to “drive” the future economy, according to News of Future (Future News for Year 2020 and Beyond). Five years ago, for example, India was said to have been “reaching” a population of 1.5 billion people.
So what does this have to do with Mid-Cap investing? How can investors benefit from selectively determining which shares to buy and which shares to sell responsibly? Answer: everything! Its concern about Micro-Caps, not hype, needs to be addressed.
- What are Micro-Caps?
- What are they used for? And:
- Who may benefit from them?
Foremost, Micro-Cap companies are companies whose total market capitalization or security is anywhere from “less” than $1 million USD to $300 million USD. Micro-Caps trade in low volume and volatility swings can be wide. Investors potentially can lose or benefit from Micro-Caps explosiveness.
In theUnited States, most Micro-Caps are not traded on the S&P500, NASDAQ, or NYSE. Investors' questions about Micro-Caps can be answered by clicking the following link. By diversifying portfolios, with ETFs, for example, investors can help protect their downside risk, and despite political instability in the region sometimes, investors can nonetheless find profitable investing opportunities.