One of the goals that many investors have is to beat the return of the market each year.
In order to achieve this I think a little exposure to small cap shares can be very helpful.
After all, the S&P/ASX Small Ordinaries (Index: ^AXSO) (ASX: XSO) has vastly outperformed its illustrious peer the S&P/ASX 200 significantly over the last 12 months.
During this time the small cap index has posted a gain of 18% compared to a 4.1% gain by the benchmark index.
With that in mind, here are three small cap shares that I think investors ought to consider snapping up and adding to a diversified portfolio today.
Money3 Corporation Limited (ASX: MNY)
I think that this financial services company is worth considering as an investment today thanks to the impressive performance of its secured auto loans business. For the first-half of FY 2018 Money3 reported a 12.3% increase in net profit after tax to $15.5 million due largely to an 18% increase in its gross loan book. Considering the company still only has a 2% share of the second-hand automotive finance market, I think Money3 has a long runway for growth ahead of it.
National Veterinary Care Ltd (ASX: NVL)
Considering the high levels of pet ownership in Australia and New Zealand and the frequency in which these pets visit a veterinary clinic, I think National Veterinary Care is well-positioned to profit in the long-term. Especially given that the industry is highly fractured and gives the company the opportunity to grow through acquisition. In the first-half of FY 2018 National Veterinary Care delivered a 27.6% increase in revenue to $41.6 million and a 27.7% lift in net profit after tax to $3.3 million.
Swift Networks Group Ltd (ASX: SW1)
This entertainment and telecommunication services company provides fully integrated solutions for the resources, hospitality, lifestyle village, and aged care accommodation sectors. I believe there is a huge opportunity for the company in the aged care sector due to Australia's ageing population, which makes Swift Networks a great option for investors looking into the small cap space.
