03 Dec Small Opportunities Big Returns
Artificial Intelligence, Automation has shaking up the ecosystem over the last few years. But the Pandemic and consequently the Lockdown have accelerated the inevitable.The business and corporate world are poised to change forever.
The outcome of a forced social experiment emerging out of the Lockdown has seen tremendous gains in productivity and some of the changes will remain irreversible.
The new environment will give rise to a host of future based businesses. The new wealth creation is trapped in these concepts and new generation companies will benefit from this opportunity.
Scaling up has become easy on the back of automation, technology, artificial intelligence & the concept of “pay per use” using Cloud Technologies. Tomorrow’s Giants will mushroom faster than one can imagine.
Think of Amazon, Facebook, Google. These companies have become the biggest corporates in the world and have cast their global foot print in record time. And now things are poised to further accelerate. Just imagine what we are likely to witness over the next 5 years. The long term is getting shorter.
Tomorrow’s wealth creation will be discovered by those with the expertise of spotting these trends and identifying the companies who will make the most of these opportunities.
Hence, the “small cap” space is getting more relevant for those investors who have the patience and the time for long term wealth creation.
Despite the recent rally in Equity markets, the small cap space still holds a lot of promise going forward and is still fairly valued in the context of the anticipated growth.
However, small cap space is tricky because of liquidity challenges associated small cap stocks and hence risk management plays a crucial role.
Hence a solid investment management and risk management framework is a prerequisite to exploit this opportunity successfully.
In this context UTI Asset Management is well poised to make the most of the small cap opportunity because of its proprietary risk management framework.
As we emerge out of this pandemic, we need to be mindful that this is our moment of truth and that a few smart investment decisions now can change the trajectory of our wealth creation potential