You have probably heard people saying that numbers don’t lie. When it comes to the stock market, small caps are known to do much better than large caps. If you master the art of selecting small caps, then you are a gem.
For the past 20 years, the S&P 600 has had a small-cap index of 10.5% in comparison to an annual return of 7.9% for the S&P 500 during the same period. That’s probably why most people often try to invest in small-caps compared to large-cap stocks.