Sensex hits fresh record high but here's why your portfolio is still bleeding
Updated : July 18, 2018 04:28 PM IST
To put things into perspective, the S&P BSE Sensex has risen nearly 8 percent in 2018. This compares to a 14 percent fall in the S&P BSE Midcap index and a 17 percent drop in the S&P BSE Smallcap index during the same period.
The performance across mid and small cap stocks for 2-3 years prior to the correction that started in January 2018 was stunning, primarily on account of improvement in earnings and expansion of P/E multiples.
Historically, market capitalization has an inverse relationship with both risk and return. Companies with larger market caps tend to offer lower returns, on average, than mid/small-cap stocks.
Have you signed up for Primo, our daily newsletter?
It has all the stories and data on the market, business, economy and tech that you need to know.
THANK YOU! You made our day. See you every morning
YOUR EMAIL IS ON ITS WAY. Check your inbox for future updates.
To keep watching CNBC-TV18, India's No. 1 English Business News Channel, call your Cable or DTH Operator and subscribe now for just Rs. 4 per month. You can also subscribe to CNBC-TV18 Prime HD for Re 1/- per month.Find out more