Small cap investments 2018: Shankar Sharma has this critical message for investors

Small cap investments 2018: Ace investor Shankar Sharma has some eye-ball grabbing tips for investors when it comes to buying small-cap stocks. While these stocks can be very volatile, they also carry the potential to make significant returns on investments for investors who are not chary of taking on risk. So, when Zee Business asked, Sharma to name or suggest the areas where the investments can be done when it comes to small-caps, here is what he said. 
 
"I feel you, the investors, should concentrate on companies that have changed certain things in previous 3-4 years, at least in terms of pollution and environmental concern among others will provide good returns," Sharma said. These are areas that have increasingly grabbed public and policy makers and also companies attention and the latter are not lagging when it comes to finding solutions for the same.
 
Sharma went ahead and added that, "I can say that people should choose companies engaged in the production of Chemicals and Steel along with road builders. Due to environmental factors, the steel companies have also changed themselves, a lot." 

Watch Shankar Sharma video here  
Considering the fact that infrastructure situation in the country is under the spotlight, Sharma had this to say about the possibilities and potential for investors in companies that deal with road building projects. Sharma revealed, "The mismatch in the number of players available to construct the road and number of projects makes this field investor friendly. The number of companies has gone down from about 25-30 to 5-10 but the demand of road has gone up." 
 
His final suggestion for investors was a call to action in combination with ameliorating risk. He said, "You can choose 4-5 companies based on their fundamentals of these sectors and invest in them. Distribution of the funds in 3-4 companies will help you to mitigate the risk."