These are considered
riskier than large cap, because there's more volatility with companies in this mix.
Since these funds are
riskier than large caps, the scope for growth is much more with mid caps.
Not exact matches
It was
risky, but I knew I was better suited to a startup
than a multinational
large cap where you're merely managing, not growing.
Investors have been taught that
large -
cap equities tend to be less
risky investments
than small -
cap equities.
Large cap stocks are less volatile
than their small
cap counterparts and are therefore less
risky.
Within stocks,
large companies (
large -
cap stocks) are seen as safer
than mid-sized companies (mid-
cap stocks) which are likewise seen as less
risky than small companies (small -
cap stocks).
Although share prices can fluctuate,
large -
cap stocks are considered less
risky than other equities because the companies tend to have more resources to weather economic downturns.
Though
large cap funds still hold some risk as an investment, they are seen as less
risky than a mid or small
cap fund.
OK, I might concede a small -
cap stock is — on average — more
risky than a
large -
cap stock (um, forgetting all those countless
large -
cap disasters...).
Just as is the case in developed markets,
riskier small and value stocks produce higher returns
than large -
cap stocks over the long term.
In general, although volatility can change on any asset (i.e., TLT is a good example), fixed income assets are less
risky than higher - yielding income;
large cap dividend stocks are not as
risky / volatile as
large cap growth or small
caps, which are not as
risky as foreign and emerging equity and so forth.
Put your money in an unmanaged index fund (as
risky as the index you put it to - ie: a venture index with small
cap companies would be
riskier in some ways
than an index of
large cap companies); and / or
Investing in micro -, small - and mid-
cap stocks is more
risky and volatile
than investing in
large -
cap stocks.
Investing in small
cap and mid-
cap stocks is more
risky and more volatile
than investing in
large cap stocks.