Why mid cap stocks might be a better option for your portfolio than small cap allocations

Many investors have included small cap allocations in their portfolios due to the strong performance track record over long periods of time and the diversification potential of a relatively inefficient asset class. As we know, however, there is no free lunch when it comes to investing. Small caps historical strength comes with greater risk than other equity asset classes in terms of return volatility, which may at times, adversely impact an investor’s total portfolio return. One way to examine…

Many investors have included small cap allocations in their portfolios due to the strong performance track record over long periods of time and the diversification potential of a relatively inefficient asset class. As we know, however, there is no free lunch when it comes to investing. Small caps historical strength comes with greater risk than other equity asset classes in terms of return volatility, which may at times, adversely impact an investor’s total portfolio return. One way to examine…

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