Penny stocks plays an important role in equalizing the portfolio balance. One should invest some percent of the amount in penny stocks. Just because the stock is undervalued or underrated, that does not mean that the stock will not grow. Understanding the fundamentals of the company and investing in penny stocks will surely give you returns one day!
Note: Don't put all your hard-earned money in a penny stock where you think that it will give you high return then the liquid stocks. Invest 1-2% of your total investment in penny stocks where you can accept less risk and high returns.