Whether you are a newbie contemplating entering the world of investing, or a seasoned stock market professional, the one thing all of us are looking for is the right stocks to invest. Should I invest in cheap stocks or should I pick stocks that have proven their worth in the market? Then social media bombards you with all kinds of knowledge. Choose multibagger stocks some will say, some will say choose penny stocks. Some in index funds some in Futures & Options. 

In this blog let us understand Multibagger stocks and Penny stocks. Before we tell you which one should you choose – multibagger or penny stocks, let’s first understand what are multibagger stocks and penny stocks.

Multibagger Stocks: These are stocks that have the potential to increase significantly in value, often delivering returns that are multiple times the initial investment. They have the potential to double in a year and give up to 1000% returns in few years. 

Penny Stocks: These are stocks that have very low market cap. Most are them are not featured in the Index or the Future & Options category. These are small, emerging companies or those with lower market capitalizations. Due to their small market cap, they are highly speculative and volatile, with the potential for significant gains or losses. Finding good stocks in such category is a tedious and specialised task. 

Now that you know what these stocks mean, let’s look at their advantages.

Advantages of Multibagger Stocks

• Offers high returns several times the initial investment
• Gains that accelerate wealth accumulation over time
• Long-term growth benefiting patient investors
• Compounding effect enhancing overall portfolio growth
• Multibagger stocks helps a portfolio to outperform

Advantages of Penny Stocks

• High growth potential for substantial percentage gains.
• Low Market Cap gives them highly Speculative opportunities on emerging companies with highest growth potential.
• Penny stocks helps a portfolio to give short term gains with long term sustainability. 

In our experience, we have seen that Multibagger stocks and Penny Stocks both rise like options without the risk of total loss. We have also seen that small-cap stocks give good returns while large-cap stocks hardly move. To enhance your average returns you have to invest in stocks with high growth potential. Most of these stocks may at least double your initial investment, with some becoming standout performers while others yield average results.
Having said all this, we know you are still wondering which one to choose, right? Whether it is multibaggers or penny stocks, finding these stocks is a specialised task. With over 4500 stocks in the market, you need an expert stock advisory services to choose them for you. This is where we, ABJ Finstocks, can play a big role by recommending the stocks that can help you enhance your wealth.