{"id":1612,"date":"2021-11-19T16:05:00","date_gmt":"2021-11-19T10:35:00","guid":{"rendered":"http:\/\/jamawealth.com\/blog\/?p=1612"},"modified":"2026-06-08T04:58:47","modified_gmt":"2026-06-08T04:58:47","slug":"best-small-cap-stocks-to-buy-today","status":"publish","type":"post","link":"https:\/\/maxiomwealth.com\/blog\/best-small-cap-stocks-to-buy-today\/","title":{"rendered":"Smallcap investing: What are Small Cap Stocks, Why is BSE Smallcap Index a good benchmark?"},"content":{"rendered":"\n<p>If you\u2019ve heard about small cap stocks and are wondering what they are and how they work, we\u2019ll talk about them in this article.<\/p>\n<p>You may also find this useful: <a href=\"https:\/\/maxiomwealth.com\/blog\/what-is-a-sector-fund-should-beginner-invest\/\">What Is a Sector Fund and Should a Beginner Invest in One?<\/a>.<\/p>\n<p>You may also find this useful: <a href=\"https:\/\/maxiomwealth.com\/blog\/what-is-rupee-cost-averaging\/\">What Is Rupee-Cost Averaging and Why It Worked for You This<\/a>.<\/p>\n<p>You may also find this useful: <a href=\"https:\/\/maxiomwealth.com\/blog\/how-portfolio-management-actually-works\/\">How Portfolio Management Actually Works<\/a>.<\/p>\n<p>You may also find this useful: <a href=\"https:\/\/maxiomwealth.com\/blog\/elss-vs-ppf-vs-nps-80c-india-2026\/\">ELSS vs PPF vs NPS: Which 80C Option Should You Pick in 2026<\/a>.<\/p>\n<p>You may also find this useful: <a href=\"https:\/\/maxiomwealth.com\/blog\/how-a-public-provident-fund-can-secure-your-retirement\/\">How a Public Provident Fund Can Secure Your Retirement<\/a>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What are Small Cap Stocks?<\/h3>\n\n\n\n<p>To understand small-caps, we need to first understand what \u201ccap\u201d stands for. Market Capitalization is a simple metric to measure the size of a company. Simply put, the value of all the company\u2019s outstanding shares is its market capitalization.<\/p>\n\n\n\n<p><em>[Market Capitalization = Total number of outstanding shares of the company x Current share price]<\/em><\/p>\n\n\n\n<p>Now, in India, companies that have a market capitalization of less than \u20b95,000 crore are called small-cap companies. In the US, small caps are categorised as companies with market cap between $300 million to $2 billion.<\/p>\n\n\n\n<p>These small-cap companies are smaller in size, operations and revenues but they are not necessarily startups or new firms. Often, these could be old mature companies with great business models.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.bseindia.com\/sensex\/code\/103\">Here<\/a> is a list of the best BSE small cap stocks.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What are the Features of Small Cap Stocks?<\/h3>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Growth Potential:<\/strong> Because these companies are focusing on growth and might yet be to tap their entire addressable market or build the efficiency they targeted, they have significant growth potential. During market upswings, a fundamentally strong small cap stock might give better returns as compared to a large cap.<\/li><li><strong>Liquidity:<\/strong> The volumes traded for small cap stocks are significantly lower than large caps. This is because the outstanding shares in circulation are lower than those of large caps. At times, it can get difficult to exit an investment due to low liquidity.<\/li><li><strong>Risk:<\/strong> Due to the high volatility and a lower confidence in these businesses, weathering b","protected":false},"excerpt":{"rendered":"<p>If you\u2019ve heard about small cap stocks and are wondering what they are and how they work, we\u2019ll talk about them in this article. You may also find this useful: What Is a Sector Fund and Should a Beginner Invest in One?. You may also find this useful: What Is Rupee-Cost Averaging and Why It&hellip;&nbsp;<a href=\"https:\/\/maxiomwealth.com\/blog\/best-small-cap-stocks-to-buy-today\/\" class=\"\" rel=\"bookmark\">Read More &raquo;<span class=\"screen-reader-text\">Smallcap investing: What are Small Cap Stocks, Why is BSE Smallcap Index a good benchmark?<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":5092,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[44,80,199,682,684],"class_list":["post-1612","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing-fundamentals-mutual-funds-guide","tag-asset-manager","tag-buildwealth","tag-equity-investments","tag-small-cap-funds","tag-small-cap-stocks"],"_links":{"self":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/1612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/comments?post=1612"}],"version-history":[{"count":4,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/1612\/revisions"}],"predecessor-version":[{"id":6626,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/posts\/1612\/revisions\/6626"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/media\/5092"}],"wp:attachment":[{"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/media?parent=1612"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/categories?post=1612"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/maxiomwealth.com\/blog\/wp-json\/wp\/v2\/tags?post=1612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}