Some instances have been observed where people have allocated | ACEink Official

Some instances have been observed where people have allocated a large amount of funds to a single small-cap stock, which is now experiencing continuous decline.

This is a painful situation for investors and can be avoided

Here are some key points for investors:

- Never allocate more than 15% of your entire portfolio to any single stock.

- Avoid allocating funds without proper research.

- Pay attention to cash flow and Return on Equity (ROE).

- If investing in small-cap stocks, be cautious of stocks with a PE ratio above 20, especially if the market cap is less than 500 crores.

- Always read the annual report of the company to understand its growth plan.

These guidelines emphasize diversification, research, financial metrics, and understanding the growth strategy of the invested companies.


Disclaimer : This is not an investment advice and this is not an investment recommendation.