The Microcap opportunity represents thousands of growth companies that are creating big discoveries, technologies and companies of tomorrow
A Microcap Is A Publicly Traded US Company With A Market Capitalisation Between 50 And 300 Million US Dollars
Microcap Stocks Offer A Big Upside
Benefits Of Microcaps
Higher Potential Returns
Small Companies Outperform Big Companies Over Time
Lack Of Visibility = Higher Arbitrage
Nimble Companies And Boards
Mergers And Acquisitions Potential
Downsides Of Microcaps
Less Analyst Coverage = Less Due Diligence By Market
Less Trading Volume
Thorough Due Diligence Can Mitigate Microcap Downsides
The infographic below provides some helpful insights into the whole area of microcap companies, illustrating what a significant opportunity this sector of the market can offer.
As with every type of loan and investment opportunity you might wish to consider for your SIPP, maximising return and minimising risk is all about the level of due diligence you undertake. When it comes to analysing microcap stocks, you’ll find what you need to consider clearly set out in the following sections:
- The People
- The Capital Structure
- The Numbers
- The Differentiators and Catalysts
- The Valuation
The microcap infographic ends with a useful section on the Tricks of the Trade.
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AJ Bell Is Often The Best Value SIPP For Stockmarket Assets
Over time, charges can wipe out a huge part of your fund. We like AJ Bell because there are no set-up costs. If you hold passive funds, which is our preference, or shares, investment trusts, EFTs, gilts or bonds, you pay one small fixed fee no matter how large your fund. And when you come to draw your benefits either as occasional drawdown or UFPLS payments, there's a small charge for the whole year no matter how many times you access your money (many SIPP and SSAS providers charge more than this for each payment). However, you should always compare charges in detail, because AJ Bell could be more expensive than other providers, depending on the type of stockmarket assets you hold.
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