A smallcase is a basket of exchange traded securities like stocks in a specified weightage to reflect a certain theme. A smallcase has a minimum of 2 securities and a maximum of 50 securities.
Minimum amount investment needed of around 20k.
Small case can be of type High risk and Low risk. So you need to select the one best for you.
Similar to thematic mutual funds based on themes.
For example, Smart Cities & Affordable Housing are some themes which you would find in smallcase.
These themes contains a portfolio of stocks related to the theme.
For example, if you choose for affordable houing theme then some sample stocks part of the small case portfolio
would be asian paints,crompton,orient electric,housing dev corp etc.
Broker would review the stocks in the small case basket and add remove stock according to performance.
Small cases are designed by experts according to the current market scenarios.
Why to use small case?
There has to be a benefit or else the concept would not have been invented.
So with smallcase, hectic task of selecting individual stocks and adding to our portfolio is avoided. One click and basket of stock’s added.
How simple is it? 🙂
How it is diff from Mutual funds:
Unlike mutual funds, with smallcases you get:
Cost Cutting – No extra fees
Transparency in your portfolio and ownership – See what’s inside the portfolio
Fees:
You are charged a one-time flat fee of ? 100 when you invest in a smallcase (no additional fees for further orders in the same smallcase). As an introductory offer, this Rs. 100 fee is waived off for the first 1,000 smallcase investments. Brokerage & other statutory fees are applicable as usual for all orders placed.
Which small cases should we invest in?
Small Cases work best when you want to invest for a long term. So choose a theme which you feel would work in the long run.
You can go to small case website and check out the best themes suitable to you.
Biggest Positive:
The biggest positive is that we are easily investing into multiple stocks with a single click.
It is good product but new investors can avoid it. Evolved investors should invest in it as they are accustomed to themes and known to thematic
mutual funds and have good experience in markets.
Not for new investors is which i feel but you can do your analysis and take the call.
Additional benefits:
1)With smallcases, you have complete flexiblity over your investments, so you can add or remove stocks anytime.
However, please ensure that you don’t sell any smallcase stocks directly on the trading platform.
2)No lock In periods.
Below is the list of stock brokers providing the facility of small case.
For exploring different kinds of small cases, kindly visit www.smallcase.com
