How to invest in multibagger stocks and what is the expected return?

Rather than searching for a Multibagger stock, an investor should focus on constructing a potential Multibagger portfolio.

Like any other stocks, Multibagger stocks also have investment risks. To reduce the risks, you should not only diversify your investment by including a number of stocks in your portfolio, but also avoid lump sum investment to reduce the market risks.

Equity investment advisory firm Research & Ranking answers some queries on Multibagger stocks:

In the current market scenario, how to look for Multibagger stocks? I have an investible surplus of 20 lakh which I want to invest over the next 3 years.

Instead of a lump sum investment of Rs 20 lakh, you may stagger your investment over 6 months as it is difficult to predict market direction over a short period of time.