What are Multibagger Stocks?

Stocks that generate returns multiple times higher than their acquisition cost Stocks of companies with low growth potential Stocks that always reflect an economic bubble Stocks with guaranteed high returns

Which characteristic is crucial for a company to generate Multibagger Stocks?

Limited investment in research and development Monopoly in the market with high entry barriers Low earnings per share and high debt-to-equity ratio Poor management skills and lack of coordination

Why are Multibagger Stocks considered a high-risk investment?

They guarantee high returns with no risk They are only issued by well-established companies Potential for substantial losses in a market downturn They are not influenced by economic bubbles or value traps

What is a characteristic of Debt Funds that makes them a suitable alternative for risk-averse investors?

They primarily consist of high-risk equity securities They offer the potential for massive returns like Multibagger Stocks They prioritize debt repayment, reducing associated risks They are highly volatile and susceptible to market fluctuations

How do Large-cap funds minimize investment risk compared to Multibagger Stocks?

By investing in companies with small market capitalization and high growth potential By focusing on companies with unproven financial strength and limited resources By investing in established companies with large market capitalization and proven financial stability By primarily investing in debt securities with low risk and low returns