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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

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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

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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

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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

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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