Mitigating High Capital Risk Exposure to Small Cap Sector in India

The world we live in is no longer a simple one. It is complex. Within this complexity, we wish to live simple lives.The main reason for choosing this topic is to analyse as an Investor the risks associated with equity capital investment in the Indian small cap sector and how to mitigate these capital risks, thereby making an Investor¿s life simpler. The methodology deployed will assist an investor in developing an investment philosophy whilst investing in small capital (listed companies) sector in India and keeping in mind the local factors. Investors are free to use or add their own philosophy to further their research. This model has been harnessed carefully under the influence of expert investors, which includes Benjamin Graham (Security Analysis); Warren Buffet; Philip Fisher (Common Stocks And Uncommon Profits); and Aswath Damodaran.