Essay --

Benefits of investing in small cap funds are in galore. Most vitals are: 1. Small-Cap Stocks traditionally outperform the Large-Cap Stocks 2. Lack of Coverage creates potential Small-Cap bargains 3. Small-Caps have higher growth prospects However, there are certain factors that work together in bringing about these benefits. As Peter Lynch puts it, "Know what you own, and know why you own it." So, first and foremost, you have to understand the financial standing of the companies whose stocks you are planning to buy. It is essential to know that companies having strong fundamentals can make sure that you get good returns on buying their small cap stocks. Secondly, it is also important for you to be able to average out the buying price of small cap stocks. Also, the small caps are not always included in the mutual funds and thus it is always advisable to all the investors to do a thorough market research before investing in potential small companies. Small Caps Stock Investing Tips Many people scamper to buy stocks, pushing the price upwards, in order to make quick money! W...