Smallcase Vs Direct Stock Investments "Know what you own and know why you own it."
The answer lies in exploring what works for you depending on the return you are seeking and the risk you’re comfortable taking on. In this blog, we will investigate two approaches- investing directly into stocks and/ or buying into bundled investments products, namely Smallcases.
What is a Smallcase?
How does it work?
- Theme-based Investing
Another attribute of Smallcase is diversification- since at its heart it’s a bundled investment. What this means is that if you invest in say a Smallcase of electric vehicles, you’re not just investing in high-growth companies, you’re investing in a basket of rapidly scaling companies across sectors. The fund manager in this case will decide the benchmark of what qualifies as high-growth and so on.
- Actively managed Portfolio
Since by design a Smallcase is a scaled-down version of a portfolio management service, it involves the supervision and expertise of a Portfoliomanager that comes at a fee. Your money is entrusted in the hands of trusted investment experts who not only devise custom investment structures but are also responsible for its performance and returns. TejiMandi as a SEBI-registered investment advisor and a subsidiary of Motilal Oswal Financial Services is qualified for efficient fund management and has the right resources to help you with your investment needs.
b) Investing directly into stocks
Both Smallcase and Direct Stock Investing have their pros and cons. It ultimately boils down to what an individual investor wants- whether they want expert advice, a risk-reward balanced portfolio and the freedom of time and peace of mind, or the freedom to construct their own portfolios and manage them. There is no right or wrong answer- it depends on an individual’s risk tolerance, investment goals, and comfort level.
One thing is for sure- investors must be nimble to navigate through today’s highly dynamic markets, be certain about what their investment goals are and be willing to take decisions accordingly. In that sense, maybe, a managed portfolio like the TejiMandi smallcases may come in handy to give you the best of market opportunities alongside inbuilt risk management.