Invest in smallcase with sebi registered professionals
What Is Smallcase and How Does It Work?
India’s investment landscape has changed dramatically in recent years, with the introduction of digital platforms and the rise of mutual funds as popular investment vehicles.
Smallcase is a new investment platform in India that offers a unique way of investing in the stock market through theme-based portfolios. A Smallcase is a basket of stocks designed around a particular theme or sector managed by SEBI-approved fund managers. This innovative investment approach brings an element of diversification to investing in the stock market.
With low minimum investment amounts and well-rounded theme-based asset classes, Smallcases are an affordable investment option that won’t break the bank account.
Smallcases provide the services of a qualified RIA for the price of a mutual fund investment and offer the easy purchase of thematic investments. Instead of buying each company’s share one piece at a time, you can buy a theme or idea as a bundle, like investing in global tech leaders or companies benefiting from rising rural consumption. Smallcases are subject to the same clearing and settlement rules as direct stocks.
Features and Benefits of a Smallcase
Investing in the stock market has long been seen as a complex and risky endeavour that requires significant research, time, and expertise. However, a Smallcase is changing the game, providing a simple, flexible, and low-cost way for anyone to invest in the Indian stock market.
Smallcase offers a unique approach to investing, providing pre-made portfolios, known as ‘smallcases’, that cater to different investment goals and risk profiles. These portfolios are curated and analysed by experts in the field, providing investors with a diversified mix of stocks and other securities that can lead to stable and consistent returns over time.
One of the critical benefits of Smallcase is risk diversification. By investing in a mix of large, mid, and small-cap stocks, investors can protect themselves from the downside of any particular stock while enjoying the upside of multiple stocks.
Smallcase is a game-changer for the Indian stock market, providing a simple, flexible, and low-cost way for investors to build a diversified portfolio and generate consistent returns over time. Whether you are a seasoned investor or a novice investor, Smallcase has something to offer.
Types of Smallcases
Founded by three graduates from IIT Kharagpur in 2015, Smallcase provides a unique way to build a long-term stock portfolio based on various themes or concepts.
The beauty of Smallcases lies in their diversity. With various themes, investors can tailor their portfolios to match their investment profile. For instance, the trend-themed Smallcases are perfect for those who want to capitalise on different trends in the market. While Beta-themed smallcases use a quantitative approach to extract a favourable rate of return on investments. Industry-themed smallcases allow investors to focus on specific industries they want to remain invested.
Smallcases are designed to offer flexibility and convenience to investors. Unlike traditional mutual funds, smallcases are stock portfolios that can be bought and sold anytime during market hours, with no lock-in period. Smallcase is revolutionising the investment industry, making it accessible to all, regardless of financial background. With its unique approach to building a portfolio, it’s no wonder that Smallcase is gaining popularity among investors.
How to Select a Smallcase?/Investing in a Smallcase?
Investors are always on the lookout for new ways to grow their money. Smallcase offers curated investment baskets of stocks and ETFs based on different sectoral themes and risk appetites.
The first step in selecting the right smallcase is to identify your investment goal. Once you have identified your investment goal, you must also decide on an investment corpus. This decision must consider your risk profile, entry barriers for certain smallcases and expert fund management costs.
It is essential to read the investment methodology and the fact sheet and evaluate the risk factors involved in the smallcase.
Investing in smallcases has several benefits. Smallcase managers offer professional investment portfolio management, so you do not have to track individual stocks or keep up with market trends. In addition, investing in smallcases provides flexibility in the investment amount, making it accessible to all investors.
Which Smallcase is Best?
Smallcase offers a basket of stocks and ETFs that are thematically grouped based on a specific investment goal. For those seeking reliable capital growth or with a high-risk tolerance, investing in equities through Smallcase is an excellent option.
Once investors have determined that Smallcase investing suits them, they must consider their investment goals, expected returns, investment style, risk tolerance, and time horizon. It will help them choose the right type of smallcase investment for their portfolio. Different investment types include large-cap, small-cap, mid-cap, dividend-yielding, tech stocks, and high-growth. Each type of investment comes with its own set of risks and rewards.
Investors should ensure that the portfolio of stocks and ETFs included in the smallcase is relevant to their needs. Investors must also consider their risk profile, investment capital, and time horizon to find the right mix of investments.
In conclusion, choosing the best smallcase investment requires careful consideration of several factors. Still, investors who take the time to do their research can enjoy risk-adjusted gains while maintaining a balanced and diversified portfolio.
Smallcase Vs Direct Stock Investments
Investing in the stock market comes with a number of options. Two of the most popular options are investing in smallcases and investing directly in stocks. But what exactly are smallcases, and how do they differ from investing in stocks directly?
Smallcases are professionally managed investment products created by bundling a selection of stocks and ETFs. They are designed to provide investors a more diversified and cost-effective way to invest in the equity markets.
On the other hand, investing directly in stocks is suited for investors who prefer a more hands-on approach. They must understand what and why they buy and how the stock performs in the market and with its peers. They may also need to try and time the investment – the entry and the exit – to capitalise on the investment to the maximum possible extent.
If you are a beginner or an experienced stock-picker who wants to buy a niche idea, smallcases can work for you. However, direct investments may be the right choice if you are comfortable understanding risk profiles and willing to take on more volatile investment climates.
Smallcase vs Mutual Fund
When it comes to investing, plenty of options are available. Two popular options for diversifying your portfolio and achieving your financial goals are mutual funds and Smallcases. But which one is the best investment option for you?
Mutual funds are a pool of money collected from multiple investors, then invested in a mix of securities. Professional fund managers choose the fund’s constituents, and investors can choose from various schemes based on their investment objectives.
On the other hand, Smallcases are portfolios of stocks or ETFs created by top-qualified and registered investment advisors in India based on a specific theme, strategy, or objective.
The investment option that is best for you will depend on your financial goals and risk appetite. If you want high control, customisation, and low cost, Smallcases could be the better option. However, mutual funds may be the better choice if you are looking for diversification and risk mitigation.
Does Many Smallcases = More Profit?
In recent years, smallcases have emerged as a popular way for retail investors in India to invest in the equity markets. These thematic investments cater to investors’ diverse investing goals and risk appetite. However, with the growing popularity of smallcases, investors need to be cautious about their investment decisions.
While smallcases offer a convenient way to diversify one’s portfolio and mitigate market volatility, over-diversification can lead to concentration risk and expensive access. Additionally, too many smallcases can make monitoring the portfolio’s performance challenging, leading to confusion and difficulty in understanding the exact details of the investments.
Choosing the right smallcases that offer a well-diversified portfolio and provide reasonable returns is crucial. Investing in a few selected smallcases that align with one’s investment goals and risk profile is a better strategy than investing in multiple smallcases.
How to use your existing Demat account to invest in Smallcase?
For novices, investing in the stock market can be a challenging and intimidating experience. With so many stocks and funds, figuring out where to start can take time. Enter Smallcases, a new and innovative way of investing that makes diversifying your portfolio a breeze.
Smallcases are baskets of equities and ETFs carefully selected by investment experts to align with specific market themes, investment strategies, or trending ideas. To invest in Smallcases, investors need a Demat account, a trading account, and a bank account, just like conventional stock trading. The trades are executed through trading accounts with a broking firm, and the stocks purchased in the basket are held in the investor’s Demat account.
How do SIPs work in a Smallcase?
Smallcases are a unique investment avenue that allows investors to invest in a basket of stocks and ETFs that follow a specific theme or investment idea. One of the significant advantages of investing in Smallcases is the ability to establish a SIP, which is a systematic investment plan.
SIPs allow investors to invest small amounts regularly, an affordable way to invest in the stock market. However, it’s important to note that Smallcases work differently than mutual funds, and investors need to purchase total units of the stocks. In most smallcases, the first investment needs to be a lump sum investment that adheres to the minimum investment requirement.
Setting a SIP in Smallcases is a great way to build a disciplined investment habit and earn better risk-adjusted returns. It’s also a great way to stay relevant in all market conditions, as SIPs do not require investors to time the market.
How to set the proper Risk Appetite in Smallcase – Explained
Investing is often a game of balancing risks and returns. And while returns may seem like the most crucial factor in selecting an investment, experienced investors know that risk is equally critical.
Smallcases offer investors a unique investment avenue that allows them to access a carefully curated portfolio of stocks and ETFs managed by professional fund managers.
However, before investing in Smallcases, investors must understand their risk appetite and tolerance. Risk appetite is an investor’s willingness to take risks, while risk tolerance is an investor’s ability to take risks. Investors must examine these two factors before making any investment decisions. Once investors have determined their risk appetite and tolerance, they can choose the Smallcases that align with their objectives.
Finally, investors should regularly examine their portfolio’s alignment with their goals and rebalance it as necessary. It can help their asset portfolio stay on track.
Which Smallcase Is Good for the Short-Term?
Smallcases are curated collections of stocks designed by professional investors to help investors diversify their portfolios and increase their chances of earning higher returns. Smallcases are a popular investment option for those looking to earn high returns in the short term. Unlike mutual funds or ETFs, smallcases offer greater flexibility in entry and redemption, making them a good alternative for short-term gains.
But with hundreds of small-cap and midcap stocks to choose from. It is where the expertise of professional investors comes in. They carefully curate the stocks to ensure that the smallcase offers a perfect blend of small-cap and mid-cap stocks, providing the best returns on investment.
Investors must set realistic investment goals and align them with the capital they invest in and the type of smallcase they choose. However, investors must consider several key factors when selecting the best smallcase for short-term gains. These factors include investment horizon, investment goal, risk appetite, and capital that can be invested.
Who Manages Smallcase? Role of SEBI RIA
According to Regulation 3 of SEBI (Investment Advisors) Regulations, 2013, it is illegal to provide investment advice in India unless the person is registered with the SEBI or unless the person is otherwise exempted from registration.
RIAs are financial advisors with a fiduciary responsibility to provide financial advice considering the client’s best interest. They consider various factors affecting the investor’s investment, such as the risk profile, return profile, tax position, time horizon, liquidity constraints, legal aspects, and any unique investment objectives.
RIAs are critical in suggesting a suitable investment strategy to investors based on their unique needs and preferences. Whether it is goal-based investing, sector-specific investing, ESG investing, or corporate governance investing, RIAs can help investors make informed decisions.
Things you should know about smallcase before investing
One of the most significant advantages of smallcase investing is transparency. Unlike mutual funds, where investors have limited visibility into the underlying stocks, smallcases provide complete transparency. Every smallcase is designed to invest in a specific theme or idea, allowing investors to know what stocks they are investing in.
Smallcases are designed by Registered Investment Advisors (RIAs) who conceptualise the strategy, research and accountability over the years and understand the investment business. However, before jumping on the smallcase bandwagon, investors must do their due diligence. It means investors should consider the expertise and track record of the RIA before investing.
Smallcase investing is a promising new trend in retail asset management, offering investors access to niche investment strategies that were previously only available to high-net-worth individuals. But, as with any investment strategy, investors should do their due diligence and consider the inherent risks involved.
Dividend Investing in Smallcase
Dividend investing offers several advantages. For one, it allows investors to earn profits without selling shares. It is particularly beneficial during market downturns, as you can still receive regular income from your investments even when the stock prices are low.
Dividend investing also offers a way to preserve your capital, as companies that pay dividends regularly tend to be more stable and better managed than those that don’t. Additionally, dividends provide a passive income stream that can supplement your regular income or remain reinvested for long-term wealth creation. Finally, dividends can also act as a hedge against inflation, as they tend to increase over time and maintain the purchasing power of your investments.
Choosing the right stocks for dividend investing can be challenging, however. Two main approaches are high dividend yield and high dividend growth rate. The former focuses on companies with high cash flows that pay high dividends, while the latter looks for companies that pay low dividends but are increasing.
Everything About Smallcase Fees and Charges
Smallcase offers various portfolios catering to investors’ needs and goals. Some portfolios are free, while some come with access fees attached, which remain charged by the respective investment managers and vary according to the expertise provided.
Investors need to choose a broker from a list of options provided on the platform to start investing in Smallcase. The charges associated with Smallcases are minimal, with investors needing to pay only a fee when creating the first Smallcase. No further fee payment is required to keep investing in the Smallcase, just regular transaction charges. Brokers charge a fee to link investors’ Demat accounts to the Smallcase, but no charges are associated with account opening or maintenance.
Smallcase offers tax benefits on dividends, making it a more lucrative platform for investors. Security transaction taxes, stamp duty, exchange fees, regulator, and GST are also charged per the transactions. They are generally the same for everyone, which can be easily identified in the trade activity reports.
KYC Norms for Smallcases
With carefully curated baskets of stocks and ETFs, smallcases make it easier for individual investors to diversify their portfolios and minimise risks. But how do you get started with smallcases? The answer is simple: Know Your Customers (KYC) norms have made it easier than ever.
KYC requirements for smallcases are minimal, with investors holding Demat and trading accounts with supported brokers able to log in directly using existing credentials.
Investors opening Demat and trading accounts must provide ID and address proof, with options including Aadhaar cards, PAN cards, voter IDs, passports, and more. The lists of acceptable documents may vary according to KYC/AML regulations in force.
Which Smallcase Is Best for the Long Term
Are you tired of spending endless hours researching individual stocks for your investment portfolio? Do you want a hassle-free way to build a diversified portfolio for the long term? If so, then a smallcase might be the perfect solution for you.
First, you own the individual stocks in your demat account, giving you complete control over your portfolio. Additionally, there are no restrictions on selling, and with the rebalancing feature, you can sell at the right time. Smallcases are also built as long-term investments, covering all subscription costs and other expenses, with no expense ratios like mutual funds.
One smallcase that stands out for its suitability for long-term investment is the Teji Mandi Flagship Smallcase. It combines 15-20 short-term and long-term stocks from Nifty500, providing investors with liquidity and stability. By only including stocks that add value to the portfolio, smallcases follow the concept of value investing, helping investors outperform the market over time, growing their wealth steadily.
How Do I Buy/Sell Shares in Smallcases?
Smallcase is a unique solution that aims to make stock investing easy, convenient, and intriguing. A smallcase is a stock basket reflecting the investor’s idea, theme, and mindset. With the help of financial advisors and experts, smallcase guides investors through portfolio choices, providing them with ready-made strategies that ease the confusion of choosing the right stock.
Buying and selling shares in smallcase is seamless, saving investors time and effort. Investors can select the stocks they want to invest in, assign weights to them, and efficiently manage their portfolio’s performance. SEBI-registered financial partners and researchers help with buying and selling decisions, making the process easy and hassle-free.
What Is Rebalancing in Smallcase?
Investing in stocks comes with its own set of challenges. One such challenge is periodically rebalancing your portfolio to ensure it follows the original investment strategy. Rebalancing is making significant changes to your portfolio to align it with the initial investment strategy.
Smallcase may remove or reduce the ratio of a particular investment instrument and replace it with another to ensure that the Smallcase’s theme remains intact. Rebalancing in Smallcase involves reviewing the volatility of the devices in the basket.
Understanding the process and impact of rebalancing updates is essential to make informed investment decisions. Smallcase users who skip the rebalancing updates risk the Smallcase no longer following the original investment strategy, which can impact returns.
Which Smallcase Is Good for the Midterm?
Smallcases are specially curated portfolios of stocks and exchange-traded funds (ETFs) that follow a particular investment strategy or theme. These baskets of securities make it simpler for investors to minimise risks and maximise gains by offering a diversified range of options.
Consider a few factors if you consider investing in a Smallcase for the medium term. Firstly, look for portfolios that have a higher exposure to large-cap stocks. These well-established companies tend to be less volatile than smaller and mid-sized firms, which can be more susceptible to market fluctuations.
Another essential factor to consider is liquidity. Mid-term investors should prioritise highly liquid stocks, allowing them to trade efficiently and quickly if the market turns volatile.
Diversification is also essential in any investment strategy. Investing in Smallcases spanning multiple market sectors and capitalisations can help reduce dependency on any one industry and offer the opportunity to benefit from growth in different sectors.
By following these tips, investors can find a suitable mid-term investment option with professional guidance and attractive returns.
Is Smallcase a Good Investment?
Smallcase allows investors to create a portfolio or invest in pre-prepared packages designed by financial advisors. The beauty of Smallcases lies in their simplicity, transparency, accountability, and cost-effectiveness.
Investors with a good understanding of the stock market and designated purposes for their investment portfolio, such as fixed income or multi-bagger returns, may find Smallcases as a suitable option.
Smallcases are a game-changer for investors looking to simplify their investment strategy. With the right smallcase and a good understanding of the stock market, investors can reap the benefits of this innovative financial instrument.
Smallcase VS PMS
Small investors in India now have an option for investing in managed portfolios, thanks to the investment platform Smallcase. The platform offers bespoke portfolios accessible to individual investors, unlike Portfolio Management Schemes (PMS), which require a minimum investment of Rs 50 lakh.
The idea behind Smallcase is to provide investors with an easy and accessible way to invest in managed portfolios. Unlike PMS, which remains aimed at high-net-worth individuals and wealthy families seeking personalised attention to their investment portfolio, Smallcase is available to everyone.
Overall, Smallcase is making investing in managed portfolios easier for small investors. The platform is accessible to everyone and is significantly less expensive than PMS. Small investors can now easily invest in managed portfolios and track their performance over time. Smallcase is changing the investment game and making it more accessible to everyone.
CAGR performance in Smallcase
One crucial factor to consider when assessing Smallcases is the Compounded Annualised Growth Rate (CAGR). CAGR is a representative number of annualised average returns, reflecting the annual return earned by Smallcase since its inception. This metric remains calculated using only live data, ensuring investors are fully informed about how returns remain calculated.
Volatility is an essential aspect to consider when calculating CAGR in Smallcases. While high volatility can impact CAGR, it can also provide better returns in the long term.
Returns generated by a Smallcase are the most vital metric to consider when assessing Smallcases. While dividends remain not considered when calculating CAGR, reinvesting dividends is advised to compound and grow investments faster. It ensures that investors can make the most of their investments and increase their returns over time.
FAQ
- We are a subsidiary of Motilal Oswal.
- Our portfolios – Flagship and Multiplier – are curated and actively managed by a team of experts.
- As of August 5, Teji Mandi Flagship portfolio delivered an annual CAGR of 35.94%. While Teji Mandi Multiplier portfolio delivered an annual CAGR of 51.14%.
- We share timely rebalance updates and also the rationale behind each stock picking.
- A subscription model with fixed fees and no hidden charges.
- Track your portfolio in an easy-to-use app in just a few clicks.
- Pocket Friendly Charges, starting at Rs 99 per month.
- We also offer a jargon-free daily newsletter to make you a better investor.
