Tell me the difference between small, mid and large cap shares
The stocks in each of the indexes, include the Small Ords have a market cap in the billions. These are all large cap companies in reality. Find the hidden gems in the ASX with Under the Radar Report.
The All Ords Index
The Top 500
This index contains the top 500 large cap companies and accounts for 90% of the Australian equity market. These large cap stocks have multi-billion dollar valuations, and are financial giants. They get most of the media's attention and dominate the news.
The ASX mid-cap Stocks
The mid caps
These company's market value is generally between $2 and $10 billion. Mid cap stocks tend to have made considerable progress in establishing successful business models that give investors stability but they are probably not growth prospects.
The S&P ASX Small Ordinaries Index
ASX Small Caps
This index is used as a benchmark for Small Cap ASX equity portfolios run by professional investors. Companies in this index are still very big and include Fisher & Paykel, Seven Group, and Breville with a market value still in the billions.
Should I invest in ASX Small Caps?
Owning smaller stocks will increase your portfolio's performance.
Small Caps typically are part of any successful ASX Share Portfolio. They can provide some of the best investments because of their high growth potential. Many of the large cap stocks by market cap were once small. Investing in these niche stocks now exposes you to much greater leverage then investing in giants later.
In 1998 Amazon was around $7 while Tesla had that valuation just over 10 years ago but they are now true large caps.
How Growth Shares Can Power Your Wealth
Larger companies may sometimes mean less risk, but every investor also needs growth shares in their portfolio.
You want a number of outstanding shares to really shoot the lights out and to bank big returns. Examples of Under the Radar Report's recommendations that have done this include: Afterpay, Splitit, Mermaid Marine, and Northern Star Resources to name a few and it’s this size where individual investors can really make money.
Your personal wealth grows as the small company grows. There are outstanding shares to buy in this niche ASX space which is why investors follow our advice on Small Cap companies.
Small ASX Stocks 101
When people talk about a small cap stock that they invested in, they are normally talking about companies with a market cap of between $50-$600 million.
Ulitmate Guide
Small Cap Investing
For a DIY investor, investing in smaller companies can prove extremely worthwhile and profitable.
For more information about these investments go to our ultimate guide in Small Cap investing now.
Under Researched Stocks
With investing opportunities
Because of the smaller size of the majority of ASX companies there is very limited independent analyst coverage. These small cap companies are largely ignored by investors. This is where we come in to sift and discover stocks with great growth potential. Find out about our best performing stocks.
Smart Stocks
Case Studies
Small Caps are our niche and area of expertise. It's where ASX investors can really have financial success in the short and long term. Because as a small company grows, so does your wealth. Check out these case studies.
Invest in powerful ASX Small Caps
1 in 5 of our Stocks have been Taken Over. Get instant access to our current Small Cap BUY, SELL and HOLD recommendations.
Yes, you do have an advantage as an Individual Investors!
It isn't what you think when you are investing yourself that you have any advantage over the big end of town. But you do!
Fund managers are often mandated to only invest their fund in large caps or mid-cap index and some 'Small Cap' Fund Managers invest within the S&P Small Cap Index.
But those stocks are still in their billions!
You can invest in the hidden gems while they are still small! This is what the fund managers dream of doing.
Why does this matter to you?
This means that the share price of these Small Caps has had to have doubled, tripled and quadrupled before a fund manager will invest capital in it, with mum and dad investors riding the company's shares outstanding success wave to get there.
And this is precisely what happens. These are just a few of our outstanding shares that were all Under the Radar Report stocks when no-one else was covering them or investing in them.
AVA Risk Group (AVA)
Tassal (TGR)
BigAir
Afterpay (APT)
Zip (Z1P)
Austal (ASB)
Clover (CLV)
Macquarie Telecom (MAQ)
Northern Star (NST)
After a period of fast growth, fund managers become interested in small companies when the market cap reaches a key tipping point.
By which time, the share price has boomed and then the company's share price often booms again as more fund managers buy in to the future performance.
Take control of your investing
If you want to start investing in shares now Access or Core Portfolio Building Package + Accelerate with Small Caps!
Get the Small Cap Research You need to Take Action.
The Small Caps we cover and advocate buying are often simply not covered anywhere else.
Under the Radar Report adopts a proprietary investment process in order to look for Small Caps that match our criteria. In addition to analysing company announcements and financials, we spend a great deal of time speaking to the management of the company.
"If you want an edge in your portfolio, Small Caps will provide you with real growth."
Small Companies, Big Opportunities
Investing in smaller companies can be very rewarding. As a small businesses grows, so does your wealth.
You need independent research - and you'll find it here
Stocks like the banks, Telstra and some internet companies are trading at record high levels. Investors are confident that their earnings will appreciate, delivering growing dividend income. These companies have high “price risk”. If there is any softening of their earnings growth, their share prices are extremely vulnerable to big falls.
In contrast, what you see with Small Caps, is “information risk”. In these companies their historic earnings performance can often bear little resemblance to their future earnings. And so you need good research before you invest in them.
Under the Radar Report selects the best ASX small cap stocks to invest in
Our annualised average return over all our 100+ small cap share tips is over 50 per cent and this includes stocks like Sirtex Medical and Select Harvests that have tripled in value.
Our Stock Success Rate
7/10 Stocks Outperform
We don't get every stock right which is why it's so important to diversify.
Small Companies rarely attract independent analysis because they are too small. But the shares we have covered in the last 10 years have definitely been noticed now and have delivered big returns for our subscribers.
Our Take Over Stock Success Rate
1 in 5of our stocks have been taken over
These stocks have doubled, tripled and more in value. Some that no one knew about are now household names. Think Afterpay or Northern Star Resources. Most recently our lithium stocks are taking off.
But then there are all the small caps, that aren't taken over but just succeed in their niche and become household names, or are success stories of their industries.
Our Results
Growth
You simply can't achieve the kinds of gains that you can get in ASX Small Caps that you can through other investments.
At Under the Radar Report we advise structuring your share portfolio clearly and that up to 25% of your portfolio should be invested across 7-15 Small Cap stocks to diversify your portfolio and position it for growth.
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