File ITR, invest & save upto
₹46,800 in taxes on the go
0% commission • Earn upto 1.5% extra returns
Reviewed by Nov 11, 2021| Updated on
A laggard is opposite of a ladder. Investors usually want to avoid investing in laggards because they achieve less-than-desired rates of return. If an investor holds laggards in their portfolio, they are generally the first ones to sell.
In broader terms, laggard connotes resistance to rising and a persistent falling pattern.
The reason for a laggard’s underperformance is specific to the company.
Investors may mistake a laggard for a bargain, but it carries a huge risk.
A laggard is one stock that returns 2% instead of another stock that returns 5% and costs the investors 3% each year.