Large cap vs small cap: The honest truth #investing #stocks #finance #podcast

Added: 2026-05-25

[00:00:00]The game where it gets interesting for small and mid is the large cap is a very efficient part of the market. Think about Indian team playing Australia in Australia, England in England, New Zealand in New Zealand.

[00:00:11]So, it's always going to be a tough challenge to win that series, not a match. versus playing at home Yes. Mid caps is playing these teams at home, but they are still tough teams.

[00:00:20]Small cap is playing any other team anywhere in the world.

[00:00:24]Most of the time Indian team over a test series will win them. Very interesting.

[00:00:27]So, the advantage of small and mid cap is not the fact that you're going to make long-term money, but if you are a skilled, you're going to create a lot more alpha in small and mid. So, your total returns can be higher if you are skilled.

[00:00:40]But, other thing I would also require you about markets is large cap investing is you are fishing in the coastal areas.

[00:00:47][music] There is a lot of competition.

[00:00:49]There's less fish. So, less alpha. Small cap mid cap investing is going into the deep waters.

[00:00:56]Very less competition. If you are skilled, you're going to catch a lot of fish, but remind you there are also sharks in the water.

[00:01:02]Coastal areas usually don't have sharks.

[00:01:04]So, if you're not skilled, you will be the lunch.