Small Capital Funds: Some Tips to Stay Safe During Market Hits

Investing nowadays is not as easy as it may seem. Whether it is investing directly in equity or through mutual funds, each method requires a significant amount of research and effort to select the right stock or fund, manage it and make a profit. In the case of mutual funds, it becomes difficult for a person if the chosen fund varies depending on market conditions. Yeah! Here we are talking about mutual funds of small capitalization. These funds are too volatile in nature and can easily leave their investors confused by their constant fluctuations.

But do not take risks and turn away from the funds of this category. The most important thing that investors need to understand is the investment in capital associated with risk that varies according to the size of the company. Risk and profit are directly proportional to each other in the case of small-cap funds. The more you dare to take risks, the better your chances of making a high profit.

Over the past three years, we have witnessed exceptional performance of small-cap funds that have attracted too many investors. But some investors who are not willing to take risks, believe that these investments in mutual funds for obvious reasons are like a pie in the sky. For these investors, we have a few tips that you can keep in mind before investing in these mutual funds.

  1. Investigate this
    It is known that the fund’s past performance does not guarantee its future performance. But that doesn’t mean you shouldn’t conduct a preliminary study of your investment strategy, fund manager, past performance, etc. before investing in it. Of course, if you want to make a great profit by investing in small-cap funds, then you need to spend enough time researching this.
  2. The goal is a long-term investment horizon
    As mentioned earlier, low-cap funds are very volatile in nature and tend to fluctuate regularly with the bearish and bullish phases of the market. Therefore, investing in them in the short term is not a solution. You have to work on the saying, “Patience is the key.” If you want to know how these funds work, you have to look at their results over the last 5 or 10 years. So, if you are going to invest in these funds, you should invest for a long period of 5-10 years.
  3. All eggs in one basket – NO!
    Diversification is a capacious term, which when applied to investing means the purchase of more than one type of equity instruments. Portfolio diversification helps to allocate risks and minimize losses. Because sticking to just one style of investing that forces you to keep only small-cap funds can lead to losses when the market declines. A well-diversified portfolio containing a mix of stocks can help you make a profit, even as those funds dwindle.
  4. Market time – NO, market time – YES!
    Many financial industry experts have considered time in the market to be a foolish activity. Time to market is not only nerve-wracking, but also risky for your investment portfolio. You can never predict the market and its confidence because you never know what factor will affect, thus, the mood of the market by lifting it up and down. So the best way is to stay away from the habit of determining market time and start your investment as early as possible with a long-term goal.
  5. Investment Philosophy Suitability
    The investment philosophy of the fund must be consistent with the objectives of the portfolio. This aspect of investment is very important in times of high volatility. Because being an investor is very difficult to remain patient in a time of market downturn, so when investment strategy and philosophy should be such that should support your risk profile and investment goal.

Although we cannot predict how a small-cap fund will work in certain market conditions, but if you remember the tips above, then investing in these funds will also be beneficial to those who fear high risk. If you have not yet invested in mutual funds, you should seek the advice of a financial advisor and start investing now.

The Amazon, the king of destroyers


When it comes to destructive technology, there is one company that dominates. Amazon ($ AMZN). Amazon and its pioneering founder and CEO Jeff Bezos are responsible for disrupting more industries than I can expect and they are still working. In this article, I’m going to explain what makes Amazon such an efficient machine, and many industries are disrupted.


When was the last time you visited Barnes & Noble ($ BKS)? Or in some other bookstore, for that matter? How about when was the last time you visited the Amazon website? I’m willing to bet that almost everyone who reads this has been on the Amazon website in the last few days, and I’m also willing to bet that almost no one has been to a physical bookstore in a long time. The bookstore industry, symbolized by the former giant Barnes & Noble, was the first victim of Amazon’s devastating trends. Amazon’s roots go back to 1994, when the company founded an online bookstore. Conceived as an online bookstore, Amazon was able to offer much more choice than any physical bookstore, and offer consumers the same choice at a lower price. Because the free market behaves normally, consumers opted for a cheaper option when offering an identical product or service. By 2007, Amazon surpassed Barnes & Noble in revenue from book sales, in the same year they released the first version of the Kindle e-book reader. By 2010, sales of digital books exceeded sales of physical books through Amazon. Amazon also runs the company and website Audible, one of the biggest players in the audiobook game. In 2011, Borders Group, which was just a few years before, the second largest chain of bookstores in the United States, declared bankruptcy and ceased to exist a few months later. At the time of writing, Barnes & Noble has a market capitalization of approximately $ 454 million. Amazon’s market capitalization is about $ 832 billion. According to market capitalization, Amazon costs almost 2,000 times more than Barnes & Noble. Amazon’s entry into the bookstore industry and its replacement by companies that were previously entrenched in place is simply the first of many industries to be torn apart by the Amazon bull.


After earning revenue from direct retail sales and fees levied from third-party vendors on the Amazon website, Amazon makes the most of its revenue from its Amazon Web Services division (AWS). The history of AWS dates back to 2006. During 2006, Amazon launched the Simple Storage Service (S3), a file storage service, as the name implies. Simple Queue Service (SQS), a service designed to automate message queues. And to end the year, they launched Elastic Cloud Computer (EC2), a service that allowed users to pay for server time for program execution and simulation. Today, under the auspices of Amazon Web Services offers about 100 different services that can meet almost any digital need. Currently, almost half of all digital cloud computing is powered by Amazon. Just like what happened to bookstores, Amazon took control. By 2020, cloud computing is projected to become an industry worth more than $ 400 billion. And Amazon is set to dominate this market in the foreseeable future.

Claim for glory

The retail and grocery industry is a great example of an industry that has forever changed Amazon and what they are best known for. However, let’s start with the fact that Walmart ($ WMT) has about three times the annual revenue of Amazon, so it’s not like Bezos and Co. have begun to dominate the retail industry, but they’ve definitely made a dent. We can say that they destroyed the industry. Although they were founded in 1994, the first four years they were just an online bookstore, but in 1998 the company expanded its catalog and started selling more than just books. Since then, the company’s online sales have grown exponentially year by year, and they have even been accused of making many traditional retailers disappear. Amazon gets about 85% of its revenue from the retail business, so it’s clear that this is the largest part of Amazon. For newcomers to online retail, Amazon has been able to establish itself as one of the largest players in retail, despite the fact that it is completely online, thanks in part to convenience and low prices. Most recently, in 2017, Whole Foods, a luxury grocery store, was acquired by Amazon to increase its market share in the retail and grocery scene. Thanks to its retail network and physical product divisions, Amazon can take a significant share of the market and keep the agency in space. Well, just to consider the scale of Amazon, more than two-thirds of all households have a subscription to Amazon Prime.


Above I talked about what Amazon’s largest divisions are and what they are best known for. But here I will talk about lesser known parts. Amazon manages its Amazon Video service and is available to all Prime customers. This service competes with traditional television and media and is popular among cord trimmings, it competes with other streaming services such as Netflix ($ NFLX) and Hulu (will soon be owned by Disney, ($ DIS)) and offers thousands of movies and TV shows. There is Amazon Drive, which offers unlimited file storage for just $ 59.99 a year. They also recently acquired the streaming website twitch, the largest live video game site that gives Amazon market share in the streaming and eSports industry. One of the first subsidiaries is A9, a very advanced search and marketing company that works with machine learning. Amazon is also stalking companies like Tesla ($ TSLA) and Waymo from Google ($ GOOG, $ GOOGL). Although Tesla is not as advanced as many believe, and not as good an investment. Returning, they also have Amazon Music, Amazon Tickets, Amazon Home Services, Amazon Inspire, Online Movie Database (IMDb), Amazon Go, Fire TV, Goodreads, Zappos and many more. Go ahead and look at Amazon subsidiaries or services offered by Amazon that I didn’t talk about, you can probably find at least a few dozen more. A few days ago, Amazon even announced that they were acquiring an online pharmacy to offer an online pharmacy and a delivery service for pharmaceuticals that disrupted traditional pharmacies.


Amazon is now the second most expensive market capitalization company in the world. The only company that outperforms them is technology giant Apple ($ APPL). Given Amazon’s huge potential for growth and the lack of equivalent competition, I believe their value will continue to grow. They are in a unique position of destroying almost every industry you can think of and succeed at the same time. Amazon is a great company that will continue to expand indefinitely and I would advise everyone to invest in a company even though some people think they are overrated.

Factors affecting stock prices

Like any other commodity, stock market prices also depend on many factors. Thus, it is difficult to single out only one or two factors that affect stock price. There are some other factors that directly affect the share price.

Demand and supply – This fundamental rule of the economy also applies to the stock market. The price is directly affected by the trend stock market trading. When more people buy a particular stock, the price of that stock rises, and when more people sell it, the price of that particular stock falls. It’s hard to predict a market trend right now, but your stock broker can give you a clear idea of ​​a steady market trend, but be careful before blindly following the advice.

News – The news is undoubtedly a huge factor when it comes to stock prices. Positive news about the company can increase interest in buying in the market, and a negative press release can ruin the outlook for stocks. Having said that, you should always remember that often, despite surprisingly good news, stocks can show the slightest movement. More important than the news is the overall performance of the company. It is always wise to wait and observe policies in a volatile market or when there is a mixed reaction to specific stocks.

Market capitalization – If you try to guess the value of the company by the price of shares, you make a big mistake. This is the market capitalization of the company, not the stock, which is more important when it comes to determining the value of the company. You need to multiply the share price by the total number outstanding shares in the market to get the market capitalization of the company and that is the value of the company.

Earnings per share – Earnings per share – is the profit that the company received per share in the last quarter. Each open company must publish a quarterly report showing earnings per share of the company. This is perhaps the most important factor in deciding the state of any company, and they affect the buying trend in the market, leading to an increase in the price of that particular stock. Therefore, if you want to make a profitable investment, you need to monitor the quarterly reports of companies and carefully study the possibilities before buying shares of specific shares.

Value for money – The price / earnings ratio or P / E ratio gives you a clear idea of ​​how a company’s share price is compared to its earnings. If the stock price is too much lower than the company’s profit, the stock is undervalued and it may rise in the near future. On the other hand, if the price is too much higher than the actual profit of the company, then stock as they say, inflated, and the price can fall at any moment.

Before we end this discussion of stock prices, let me remind you that there are many other reasons for falling or rising stock prices. In particular, there are specific stock factors that also play a role in stock prices. Therefore, it is always important that you conduct your research and trade stocks based on your research and the information you receive from your broker. Therefore, to benefit from effective consulting services, it is always better to turn to professional stock trading companies than to be enticed discount brokerage advertising that you have to face every day.

Cryptocurrency market analysis

Cryptocurrency has been around for some time, and there are several articles and articles on the basics of cryptocurrency. Cryptocurrency has not only prospered, but also opened up as a new and reliable opportunity for investors. The crypto market is still young, but mature enough to infuse enough data to analyze and predict trends. Although it is considered the most volatile market and a huge game as an investment, it has now become predictable up to a point, and bitcoin futures are proof of that. Many stock market concepts are currently being applied to the crypto market with some tweaks and changes. This gives us another proof that many people are entering the cryptocurrency market every day, and there are currently more than 500 million investors. Although the total market capitalization of the crypto market is $ 286.14 billion, which is about 1/65 of the stock market at the time of writing, the market potential is very high given the success, despite its age and the availability of already established financial markets. The reason for this is nothing more than the fact that people have begun to believe in technologies and products that support the crypt. It also means that crypto technology has proven itself and so much so that companies have agreed to place their assets in the form of cryptocurrencies or tokens. The concept of cryptocurrency has become successful with the success of Bitcoin. Bitcoin, formerly the only cryptocurrency, now accounts for only 37.6% of the total cryptocurrency market. The reason – the emergence of new cryptocurrencies and the success of projects that support them. This is not to say that bitcoin has failed, in fact the market capitalization of bitcoin has increased, rather it indicates that the crypto market has expanded as a whole.

These facts are enough to prove the success of cryptocurrencies and their market. And in fact investments in the Crypto-market are now considered safe to the extent that some invest in their retirement plan. So further we need tools to analyze the crypto market. There are many such tools that allow you to analyze this market in the same way as the stock market, providing similar indicators. Including market capitalization of coins, coin stalker, cryptoz and investment. Even if these figures are simple, they provide important information about the crypt under consideration. For example, a high market capitalization indicates a strong project, a high 24-hour volume indicates high demand, and a circulating supply indicates the total number of coins of this crypt in circulation. Another important indicator is the volatility of the crypt. Volatility is how much the price of a crypt fluctuates. The cryptocurrency market is considered to be very volatile, cash in the moment can bring in big profits or make you pull by the hair. So we are looking for a crypto that is stable enough to give us time to make an informed decision. Currencies such as Bitcoin, Ethereum and Ethereum-classic (not specifically) are considered stable. Being stable, they need to be strong enough not to become invalid or simply cease to exist in the market. These features make the crypto reliable, and the most reliable cryptocurrencies are used as a form of liquidity.

As for the crypto market, volatility goes hand in hand, but its most important property is decentralization. The crypto market is decentralized, which means that falling prices for one crypto does not necessarily mean a downward trend for any other crypto. This gives us the opportunity in the form of so-called mutual funds. This is the concept of managing the cryptocurrency portfolio in which you invest. The idea is to spread your investment over multiple cryptocurrencies to reduce the risk if any crypto starts on bearish.

Similar to this concept is the concept of indexes in the crypto market. Indices provide a standard benchmark for the market as a whole. The idea is to choose the best currencies in the market and distribute the investment among them. These selected cryptocurrencies change when the index is dynamic and takes into account only the best currencies. For example, if the currency “X” falls to the 11th position in the crypto market, the index, which considers the top 10 currencies, will now not consider the currency “X”, but will begin to consider the currency “Y”, which took this place. Some vendors, such as cci30 and crypto20, have tokenized these Crypto indexes. While for some this may seem like a good idea, others oppose it because there are some prerequisites for investing in these tokens, such as the minimum investment required. While others, such as cryptoz, provide the methodology and value of the index as well as the currency components, so the investor is free to invest the amount he wants and choose not to invest in a crypto otherwise included in the index. Thus, the indices give you the opportunity to further smooth volatility and reduce risk.


The crypto market may seem risky at first glance, and many may still be skeptical of its authenticity, but the maturity that this market has achieved in the short period of its existence is surprising and enough evidence of its authenticity. The biggest concern of investors is volatility, for which there was a solution in the form of indices.

Stock promoters – how do they raise money and increase market capitalization for your company?

It takes an incredible amount of effort, dedication and perseverance to translate your company from overall success to a thriving business. Much of this is under your control – you can work hard, represent your company and sell yourself with the best tactics in business. But what really will put your company over the edge and make it thrive? Impact. The main thing is that your company was represented by as many investors as possible! Get interested in big investors, and the sky is the limit!

What are small stocks?

Small-cap stocks are stocks of small-cap companies; small in terms of market value, usually with a market capitalization below $ 100 million.

What will the stock promoter do for me?

Basically, stock promoters give you the desired but elusive impact that every business owner seeks. They will put your company in front of millions of investors. Communicate a huge number of potential investors about your company and what you do. With this amount, your company can sell shares and increase its capital! In turn, you can use this capital to take your business to new heights and do with your company what you might not otherwise be able to afford! The number of public companies is growing every day, and attracting investors that your company deserves can be difficult. A stock promoter can open your company to investment opportunities and help you turn those investment dollars into working capital!

So how do they do it?

Stock promoters have a very specific and successful method that they use to promote your company.

1. They will use a professional research report to demonstrate all the key aspects of your company. This incredibly useful report is presented to hundreds of thousands of subscribers !!

2. You also receive an unlimited number of company news releases that will be sent to the same subscribers. Allows you to have unlimited and constant exposure.

3. The main thing – not only to attract the attention of investors, but also to capture it! You don’t want them to see your company and keep moving. You want to capture them and impress them. A stock promoter connects your company’s investment views with other successful companies (large and small), giving your company almost instant access and volume.

What should I look for?

If you are looking for the right stock promoter for you, there are a few things you need to know first. One promoter is not as good as another. Do your homework.

o Find out how well they are doing for themselves. How many visits does their website get per day? If they are not successful, you will not be able to use them.

o Do they have a large number of active subscribers? They can’t expose you to hundreds of thousands of investors if they don’t have hundreds of thousands of investors using their services to find companies like you. Again, your success will be on par with their own.

o Social networks are an increasingly valuable tool for any business owner. The nice feature you will get is chats, forums and blogs. These elements bring you closer to your investor.

o Find out what success they have achieved with companies like yours.

Questions to ask:

o How long did it take to increase their capital?

o What additional exposure were they able to achieve?

o How has this company changed since they started using their services?

Classification of market capitalization

Market capitalization, or market capitalization, refers to the value of a company and is a measure of a company’s size. Market capitalization is the value you get when you multiply all the shares outstanding by the price of one share. For example, if a company has 10 million shares outstanding and its share price is $ 5, the market capitalization is $ 50 million. Market capitalization is usually indicated on stock quotes that you find online.

Companies are grouped into market capitalization categories that are references to how large a company is measured by its market value. Here are five major categories of market capitalization:

1) Microcapital (less than $ 250 million): the smallest companies and the riskiest stocks. Penalty shares fall into this category.

2) Small capitalization ($ 250 million to $ 1 billion): stocks with higher growth potential but higher risk. Usually include new or young companies.

3) Medium capitalization ($ 1 billion to $ 5 billion): some part of the security of large investments with some growth potential for small investments. These companies run in the market longer than smaller companies, and their shares tend to have lower price volatility.

4) Large capitalization ($ 5 billion to $ 250 billion): stocks for a conservative investor who wants steady growth with greater security. These stocks are called “blue chips” and include companies like IBM.

5) Mega cap (over $ 250 billion): The largest companies that are usually leaders in their industry. Examples include Wal-Mart and Exxon.

There is no universal agreement on the exact categories. Many investors prefer the system of three constraints: small, medium and large, while others prefer to break it down into more than the five categories listed above.

The market capitalization classification allows you to estimate growth against equity risk potential. Larger capitalizations experience slower growth with less risk, while smaller capitalizations provide greater growth potential but with higher risk. Market capitalization is important to consider, but don’t invest just because of it. You can determine the value of a company in different ways, and market capitalization is just one of the indicators of value.