Is Investing In SME Stocks Worth The Risk?
Dalal Street Investment Journal|September 11, 2023
Bhavya Rathod reveals that while the SME markets might not be suitable for the faint of heart, they undoubtedly offer a thrilling landscape for investors who are willing to embrace risk, exercise due diligence, and leverage their understanding to uncover hidden gems amidst the turbulence
Iris Clothings Limited, a readymade garment company engaged in designing, manufacturing, branding and selling garments for kids wear, announced its expansion strategy through exclusive brand outlets (EBOs).
Is Investing In SME Stocks Worth The Risk?

Embarking on a journey that unfolded some years ago, the Government of India laid the foundation for an initiative with the potential to reshape the investment landscape. This initiative, strategically crafted, held a significant purpose: to extend a helping hand to the unsung champions of the business world – the small and medium enterprises (SMEs). This dynamic endeavour aimed to democratize the realm of stock exchange listings, offering these emerging enterprises an opportunity to access investment capital from individual investors. In stark contrast to their larger counterparts with their financial prowess, SMEs often grapple with the uphill task of emerging from the shadows of obscurity.

Thus, when the government gave its nod of approval to this visionary initiative, it sent ripples of enthusiasm coursing through the market – an enthusiastic wave that has continued to shape the investment landscape. With official support in place, the exchanges sprung into action, culminating in the establishment of a specialised platform dedicated to SMEs. This strategic move garnered widespread commendation across the financial spectrum. Investors welcomed the prospect of holding a stake in the burgeoning SME sector, while the proponents of these modest businesses revelled in the assurance that funding would pose less of a hurdle.

This story is from the September 11, 2023 edition of Dalal Street Investment Journal.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

This story is from the September 11, 2023 edition of Dalal Street Investment Journal.

Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.

MORE STORIES FROM DALAL STREET INVESTMENT JOURNALView All
How To Invest In An Ageing Bull Market
Dalal Street Investment Journal

How To Invest In An Ageing Bull Market

Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.

time-read
5 mins  |
July 29, 2024
Should You Entrust All Your Money To A Single AMC?
Dalal Street Investment Journal

Should You Entrust All Your Money To A Single AMC?

If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario

time-read
7 mins  |
July 29, 2024
Wild Swings Engulf Global Equities
Dalal Street Investment Journal

Wild Swings Engulf Global Equities

U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.

time-read
2 mins  |
July 29, 2024
U.S. Elections and China's Economy Hamper Commodities
Dalal Street Investment Journal

U.S. Elections and China's Economy Hamper Commodities

Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.

time-read
2 mins  |
July 29, 2024
Wealth Building For Retirement Through Mutual Funds
Dalal Street Investment Journal

Wealth Building For Retirement Through Mutual Funds

Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.

time-read
3 mins  |
July 29, 2024
Mastering Investment with Information Ratio
Dalal Street Investment Journal

Mastering Investment with Information Ratio

Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool

time-read
6 mins  |
July 29, 2024
Plan To Be Financially Independent
Dalal Street Investment Journal

Plan To Be Financially Independent

Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.

time-read
2 mins  |
July 29, 2024
❝Technology is the new game-changer"
Dalal Street Investment Journal

❝Technology is the new game-changer"

With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company

time-read
5 mins  |
July 29, 2024
What If Donald Trumps?
Dalal Street Investment Journal

What If Donald Trumps?

The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store

time-read
6 mins  |
July 29, 2024
Sectoral Gains Make A Mark
Dalal Street Investment Journal

Sectoral Gains Make A Mark

Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures

time-read
2 mins  |
July 29, 2024