A little hard work in volatile times goes a long way in giving medium- to long-term returns: 5 small-caps that tick the right boxes

Anyone who doubts that volatility and bearishness hit small-caps stocks more than others should check what happened to some of them in these four months of correction. Small-cap stocks do have a higher element of risk. But if you take care of a few things before investing, it will go a long way in ensuring that you get that extra return for the extra risk taken. Also, understand a simple fact. Small-cap stocks are highly volatile, with price swings amplified by limited trading volumes. So, when they are rising don’t assume that it is all about fundamental improvement in the business and vice versa.