25 June 2020
Smallcase: Making Stock Investing a Little Less Cumbersome

    Stock Investing becomes an integral part of an average Indian adult’s life from the time, he/she steps out for jobs. Due to a lack of overall awareness and reliable knowledge beforehand concerning stock investing the process can be a difficult one in retrospect.

    Smallcase helps you out by bridging that gap to build a low cost, diversified, and a long-term portfolio.

      What is smallcase?

    Smallcase emerged as a new initiative where brokerages are now offering investors to buy an entire portfolio of stocks built around a specially curated theme in one go.

    Smallcases are portfolios of stocks, weighted carefully to track a theme or objective meaningfully.

    Started off by Smallcase Technologies, this new initiative gives investors a chance to take exposure to carefully researched and curated, diversified theme-based portfolios provided with existing trading and Demat accounts.

    A number of brokers including HDFC securities, Edelweiss, 5paisa, Axis Securities, Zerodha offers the smallcase platform where the investors have complete control since the smallcases are integrated into trading accounts.

      Why smallcase?

    Here we will list a few advantages of using smallcases :

      Diversify and Lower Risks - Smallcases help provide security. By investing in multiple stocks protects you from the volatility of investing in a single stock.

      Zero Management Fees - Smallcases are better than mutual funds when it comes to the transactions. For smallcases, you pay only after a transaction unlike for mutual funds where the payment is carried out on a daily basis.

      Stay in Total Control - Smallcases helps you stay at the top of your game by allowing you to invest without lock-in while earning dividends directly into your bank account.

    When we compare smallcases to direct stocks, smallcases have the upper hand due to it being diversified and backed by professional research. Also unlike other products, smallcases are liquid, transparent, and without any expense ratios. A smallcase allows you to invest in readymade themes while providing investing strategies curated by SEBI licensed professionals.

    Smallcases provide everything you would need to build your portfolio from scratch catering to your specific needs in the process.

    Transparent, customizable, and straightforward smallcases have a number of different types :

      All Weather Investing - All Weather Investing is focused on helping the customers build long-term wealth in a recession-proof manner.

      Smart Beta - This provides you with quantitative strategies that are built with blue-chip stocks or the big leagues, aimed at beating out the market.

      Thematic And Sectorial - This plan allows you to invest in disruptive ideas and long-term trends around you that have a critical impact on the Indian economy.

      Model-Based - Portfolios based on fundamental and technical factors or the strategies of famous investors like Benjamin Graham’s Value Investing(popularised by Warren Buffett) or Joel Greenblatt’s Magic Formula. These smallcases contain stocks screened using the methodologies of these prolific investors which then allows you to invest in just a single click.

      Top Smallcase Collaborators/Advisors

    Smallcases are built and managed by some of the top accredited SEBI professionals who use quantitative models and algorithms to screen and weight the constituents.

    Investment advisor stalwarts include :

  •   RoboCapital
  •   WeekendInvesting
  •   Capitalmind
  •   Wright Research

  • Asset Management is taken care of by:

  •   Kodak
  •   IIFL Wealth
  •   Edelweiss
  •   ICICI
  •   HDFC
  •   Axis Direct

  •   Conclusion

    Smallcases help eases the process of stock investing by eliminating the mind-numbing man-hours that would go into researching, understanding the stocks of the company you wish to invest in so all you need to focus on is what stocks you wish to buy at the helm of a click. Buy multiple stocks with smallcases, track them anywhere, anytime while investing regularly in SIPs. You have the flexibility given to you to create a smallcase picking out stocks to your liking. A major step toward improving the business acumen of the general public smallcases continues to be on the rise with its lightweight model propelling it forward.