Smallcase is a specifically curated basket based on easy-to-understand ideas. The use purpose of every smallcase is different, but they all serve one goal: wealth creation. Each smallcase is a professionally managed basket of stocks or ETFs that reflects a strategy, idea, or theme. The smallcases are made in such a way that helps you to invest into an idea, specific sector or businesses that have growth potential for the future.
The purpose is to help you invest in multiple companies that serve a particular investor goal (getting high dividends for some or investing in ESG companies for some).
The use case is to help people who might not be market experts but can still get returns by reading about the particular smallcase and the methodology behind creating the smallcase.
How is it different from a mutual fund or ETF
“Mutual funds are subject to market risk; read all scheme-related documents carefully”- is what every mutual fund advertisement tells you. This is true here also as in a sense, it is vital to understand the idea behind the smallcase one is planning to invest in. Other than that, a smallcase is very different from a mutual fund or an ETF.
Mutual funds aren’t market traded and are traded at NAV, while an ETF is market sold and traded close to its NAV. With smallcase, the investment amount is determined via the stocks it includes and the weights assigned to the stocks.
Smallcase helps you buy a bunch of stocks with just one click that gets credited to your Demat account, you actually hold those shares with you, which a mutual fund or ETF does not offer, and track their movement very seamlessly. Smallcase in this way gives you complete control of your holdings, and you can buy/sell the shares at your discretion also.
Since you are the shareholder, the dividends and stock split (if any) also get credited directly to you.
One of the biggest backdrops of mutual funds is the lock-in periods of different funds; this is not the case with smallcase as you have complete freedom of your portfolio. Smallcases also get rebalanced at regular intervals, and stocks are added, removed, or the weight are reassigned.
One of the most significant plus points of mutual funds is that they give exposure to equity, debt, gold, etc. via their different funds; this is the case with smallcase too. The different smallcases offer varied exposure to debt and gold via ETFs.
Now and then, the financial industry sees new products that help bring onboard a more unknown generation segment while promoting financial literacy. Smallcase is one such investment product for this generation, so don’t miss out on this opportunity.
You can head out to our retail section and see the different curated smallcases that we offer and choose the ones that fit your investment needs.