5 Ways to Boost Return in Your Investments While Actually Cutting Risk

Invest in small to mid-sized companies

History has proven that small-capitalization companies often outperform the large-capitalization companies in both the national and international markets.

Most investors think that smaller companies carry a higher risk because they are less established and they are riskier loan candidates as well. However, historically speaking, an investment portfolio that favors small-to-midsize companies has nearly always provided high returns than a portfolio with large-cap stocks.

From 1926 to 2010, small American companies outperformed the large American companies in terms of equity return by an average return of 2% every year.

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