#how does smallcase work

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What Is Smallcase and How Does It Work?

Smallcases infuse a portfolio-driven approach to investing; individual stock units will be credited to your Demat account once you make a purchase. This is not the case with respect to a mutual fund, where you gain access to the aggregated fund alone and not the underlying companies.

For a long time, finance was an idea, like art. It then became a commodity accessible only to a privileged few. Beyond dinner-time conversations about the rising (or plunging, as the case may be) Nifty and hush-hush tips about companies that may rule the markets of India’s ballooning middle-class, investments, and investing ideas were often approached with an air of mystique. But that was then; 2020-2021 has ushered in a new era of financial literacy and everyone is interested! The pandemic changed the rules of the game and made everyone sit up and take notice of their savings and the need to invest. This is fortified by the record number of Demat accounts opened, even at the peak of the pandemic, when the economy was distressed, and the stock markets diverged and rebounded. Indian investors opened a record 14.2 million new Demat accounts in FY21, nearly three times that of the previous fiscal year, and the Nifty shot up from around 8500 at the end of FY20 to above 14600 by the end of FY21.

Whether it’s direct stocks or commodities, mutual funds or cryptocurrency, everyone is now putting a lot of time and effort into figuring out how to save and build wealth for the future. As the investment landscape heats up and finances as a subject become more accessible to the masses (at last), new and innovative ideas have cropped up and disrupted the industry.

Case in Point: Smallcase

The term ‘Smallcase’ is synonymous with the company of the same name, founded in 2015 by Anugrah Shrivastava, Vasant Kamath, and Rohan Gupta to bring theme-based investments to non-institutional investors. To put it simply, Smallcases are modeled around legacy portfolio management strategies that had so far been reserved for large investors (read HNIs & HNWIs). A smallcase fund or simply ‘Smallcase’ refers to a collection of a group of stocks based on a certain sector, technology or theme that is managed by SEBI-Approved Fund Managers. This is, in a way, a tangible method to invest money into multiple companies’ shares when trying out strategies the fund managers believe could work well together at some point down the road; it introduces an element of diversification instead of cherry-picking ‘industry stalwarts’ among laggards.

Let’s see this with an example:

Suppose you feel very positive about high-growth tech stocks in the long term. You want to invest in them, but are unable to hand-pick the best bets – or you simply don’t have the knowledge or the time to research. In this case, buying a specific Smallcase that invests in the theme will be ideal, instead of buying a random stock from the sector based on a large-cap or small-cap categorization.

Smallcases typically help investors walk the middle path between mutual funds and direct investments in stocks.

What are Smallcases?

Smallcases infuse a Portfolio-Driven Approach To Investing; individual stock units will be credited to your Demat account once you make a purchase. This is not the case with respect to a mutual fund, where you gain access to the aggregated fund alone and not the underlying companies.

What this also means is that when you Invest In A Smallcase, you become a part-owner in every stock that is in the portfolio of your chosen Smallcase, and you are eligible for dividends and other rights assured to shareholders.

The cost of investing in Smallcases may be comparable to investing in mutual funds, and different Smallcases have different expense ratios as per the RIA (Registered Investment Advisor) Handling The Portfolio. However, no exit load was applied on Smallcase redemptions. Every charge applicable to stock trading is applicable to Smallcases too. Read more about how does smallcase work

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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.

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How Does Small Casework, And What Is It?

Smallcase is a distinctive method of making investments. With just one click, buyers can buy a diverse collection of equities or exchange-traded funds (ETFs). 

Unlike investing in mutual funds or other standard portfolio management facilities, small case investing gives a choice of pre-built portfolios called "smallcases." Those smallcases are collections of stocks or ETFs that follow a certain investing theme or approach. They are delicately put together and handled by Smallcase's in-house study team or experts with whom they work together.

How do you use Smallcase?

Let's figure out how smallcase operates now that you understand it. Smallcase serves by giving people who want to spend a simple and easy way to do so. This is how it works:

Investment based on a theme: 

The best smallcase to invest in is based on specific trading ideas or techniques, like "Banking Sector Outlook" or "Digital India." Every smallcase has a collection of stocks or ETFs which match the theme.

Strategy based on research: 

Smallcase has a staff of experts and pros who do thorough study and analysis to find possible business opportunities underneath a provided theme. When making the smallcases, they look at economic conditions, company basics, and industry perspectives.

Clear composition: 

Each smallcase is clear, so buyers can see which stocks or ETFs belong to the portfolio. It makes it possible for buyers to make choices according to their risk tolerance and financial goals that are well-informed.

Customizability: 

Smallcases are pre-made investments, but buyers can change them to fit their needs. It may add or remove specific securities or exchange-traded funds from the smallcase to make it fit their needs.

Making investments with one click: 

When an investor has picked a smallcase, all it takes is one click to put money into it. The smallcase tool handles the deals and distributes the amount you want among the securities or ETFs that make up the smallcase.

Why is it a good idea to invest in small cases?

Openness and taking charge: 

In contrast to standard mutual funds, small cases give buyers full information about the stocks or ETFs that make up the portfolio. Buyers can see exactly what stocks they own, which helps them make smart choices and keep track of their assets.

Less expensive: 

Most of the time, small cases cost less than mutual funds. As they are built on owning stocks directly, buyers may prevent the management expenses that come via mutual funds. This could save them money in the long run.

Changeable and adaptable: 

The investors can change small cases to fit their level of risk, time frame, and financial goals. If you want to invest for revenue, growth, or worth, small cases allow you to make a personalized portfolio that fits your tastes.

Savings on taxes:

When people buy in small cases, they can directly own securities, which can help them save money on taxes. Buyers have a greater say over how they realize capital gains, which allows them to plan their tax obligations better.

Smallcase is a trading tool that is both new and easy to use. It has changed the way people trade in the stock exchange. Through its focus on themes, openness, and easy-to-use layout, smallcase gives new and experienced buyers a unique spending method.

Smallcase makes investing easier by offering pre-made portfolios. This takes away the need to do a lot of study and choose stocks on your own. Investors can get the availability of well-researched financial ideas and tactics from the study squad at smallcase or from pros with whom it works.

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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.

Read more about smallcase wikipedia

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How to calculate basic salary?

Your take-home salary is the total of your primary salary, deductions, additional allowances, and so on. Other terms like gross salary, CTC or Cumulative Cost to Company, and net salary get linked to it. Hence, it is necessary to understand them and how they impact your income. The foundation of your salary is the basic amount you receive from the company.

What is a basic salary?

It is a fixed proportion of your salary before adding allowances like Dearness Allowance, House Rent Allowance, Overtime, Bonus, or deductions like Provident Fund, Gratuity, etc. You can use the salary calculator to calculate your basic pay, which is a part of your total CTC and take-home salary. It also includes expenses like phone, internet usage, and travel for employees working from home.

Calculation

The formula to calculate your basic pay is Annual Basic Salary = Monthly Basic Salary x 12 months. Though there is no fixed method for deciding your basic pay, companies use a reversed calculation method. They take a percentage of your gross salary and CTC. Your basic pay is 50% of your CTC and 40% of your gross pay.

Additions to basic salary

The monthly income calculator includes some common additions to basic salary, including bonus, overtime, tips, gratuity, Dearness Allowance, House Rent Allowance, conveyance, medical allowances, and others like phone, internet usage, etc.

Deductions

Some deductions in your salary slip include pension contributions, contribution to salary sacrifice schemes, court order payments, pay reduction due to strikes, TDS or Tax Deduction at Source, and Group Insurance Policy premiums.

How does a calculator help?

The calculator helps calculate the take-home salary, the total salary you get after all additions and deductions. It also includes income tax calculations, CTC calculations, etc. Its formula box includes many allowances and deductions across various employment conditions and is suitable for all. It also has a leave and attendance tracker helping employees plan and understand their earnings better.

How to increase returns?

Money is essential for all your present and future needs. It will help if you start saving and investing from the beginning of your career. Smallcase is stock portfolio, or Exchange Traded Funds weighed for tracking a strategy, objective, and theme. Consider these uses:

Simplicity

They are modern investment products based on simple ideas that are easy to understand. You can track your investments and check whether they align with your objective.

Professional management

India’s leading financial experts created this startup and backed it by solid research and facts to offer customized services.

Customized services

You can edit your constituents at any time and create a customized portfolio.

Portfolio-based investing

Investing in a stock portfolio is beneficial than one or two stocks. It allows you to diversify across market segments and capitalization. You benefit and earn from the upside in different stocks and stay protected from the downside in a particular stock.

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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. Read more about smallcase

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Unlocking Smallcase

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.

Know More About Smallcase

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Which Smallcase Is Best for the Long Term

What is smallcase?

A small case is an investment tool that contains several portfolios based on various themes or strategies from which investors can select based on their needs. Real estate, health, technology, and other topics are possible themes. The use of algorithms and weights by SEBI Licensed Experts' Advice is a critical component of these portfolios. In other words, investors do not need to research individual stocks from a pool of stocks in order to receive a personalized portfolio prepared by experts.

Some pros of investing in the Smallcase are:

· Individual stock ownership in the investor's Demat account

· The benefit of a pre-made portfolio without the hassle of researching and analyzing sing various stocks.

· There are no limitations on selling. Smallcase's rebalancing feature assists investors in selling at the appropriate time. In contrast to mutual funds, there is no automatic reinvestment.

· There are no expense ratio costs, as there are in a mutual fund.

· Furthermore, small cases are typically constructed as long-term investments. As a result, it assists in covering all subscription costs and other expenses that an investor may incur prior to investing in a small case.

How Does Smallcase Work?

· The first step for any investor is to open a Demat account. Through this account, all trading transactions will take place.

· Afterwards, he/she must access the broker’s platform and select a smallcase.

· Analyse the individual stocks with their respective weights, which make up that particular smallcase.

· Decide on the smallcase based on your interest and buy it.

· Prices and weights of the individual stocks in the selected portfolio will determine the purchase amount. You can make a Lump Sum Investment. Or start a SIP (Systematic Investment Plan) where you will invest a fixed amount monthly or quarterly.

· The broker platform will execute the transaction immediately once the investor clicks buy.

Which Smallcase Is Suitable for the Long Term?

Teji Mandi Flagship Smallcase

The Smallcase offers its investors a portfolio combining 15-20 short-term and long-term stocks, all from Nifty500. With the addition of short-term stocks, investors benefit from liquidity through this smallcase.

Its 1-year CAGR stands at 75.72%.

In case of negative news in a sector or an unfavourable situation, the smallcase will immediately exit those stocks. This smallcase aims to build a stable and liquid portfolio which are the critical factors for a long-term investment. Read more about best smallcase

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What Is Rebalancing in Smallcase?

Smallcase Rebalancing is the process of regularly reviewing your portfolio to make meaningful changes and ensure that you stay true to your original ideas.

What is rebalancing in the smallcase?

If you plan to visit a cold city, pack woolen clothing for your own safety. Similarly, if you want your vehicle to speed up, change gears.

What we mean is that you tend to automatically adjust to be optimally prepared for the coming changes.

Similarly, when portfolio updates occur in Smallcase, rebalancing updates are sent to users to ensure they are ready for what's to come.

This article discusses rebalancing and its impact on portfolio returns.

What is rebalancing?

Small case rebalancing is the process of periodically reviewing the portfolio to make meaningful changes and ensure that it stays true to the original ideas.

User has the option to review the proposed changes and accept or reject the update. However, skipping the update might break the small case from following the original idea. As a result, we recommend that you understand the financial implications before taking any action as it may affect your bottom line.

How does the small case rebalancing work? As you know, a small case is a basket of stocks that follow a specific market strategy/theme/idea. Each small case has a volatility factor. For example, choosing a low volatility factor-based small case means investing in commodities that do not change significantly over time. In such small cases, portfolio updates are typically done every 6 months.

However, when investing in the medium or high volatility small case, these include highly volatile instruments and require regular valuations to understand future profitability. there is. Portfolio updates for such small cases occur every three months in a normal scenario. This ensures that small cases are a good choice for dealing with a particular topic.

Smallcase rebalances updates are optional for every user. You can review the changes and apply or reject them in two easy clicks. It is imperative to understand that when you are a smallcase, you trust the fund manager to utilize your money in the best possible manner. So denying a portfolio update in a small case would mean that you no longer trust their judgment.

At Teji Mandi, we are a SEBI Registered Investment Advisor dedicated to helping you make the best investment choices.

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What Is Rebalancing in Smallcase?

Smallcase rebalance is the process of periodically reviewing and making meaningful changes to your portfolio to ensure it continues to adhere to the original idea.

What Is Rebalancing in Smallcase?

When you plan to visit a cold city, you pack in woolen clothes to ensure your safety. Similarly, you change gears when you are looking to accelerate your vehicle’s speed.

What we mean to say is we tend to adjust automatically to ensure we are best prepared for upcoming changes.

Similarly, when there is a portfolio update in smallcase, a rebalancing update is sent to the users to ensure they are prepared for what lies ahead.

This article discusses rebalancing and its impact on your portfolio profits.

What is rebalancing?

Smallcase rebalance is the process of periodically reviewing and making meaningful changes to your portfolio to ensure it continues to adhere to the original idea.

The user has the option to go through the suggested changes and can accept or reject the update. But skipping the update can lead to your smallcase no longer following the original idea. As a result, it can impact your returns, and we suggest you understand the financial repercussions before making a move.

How does smallcase rebalance work?

As you know, a smallcase is a basket of stocks that adhere to a specific market strategy/theme/idea. Each smallcase has a volatility factor to it. For example, if you choose a low volatility factor-based smallcase, it means that you are investing in instruments that do not change significantly over time. Portfolio updates in such smallcases usually take place once every six months.

But if you are investing in Medium Or High Volatility Smallcases, these contain highly volatile instruments and may require a periodic assessment to understand their future profitability. Portfolio updates in such smallcases occur once every three months in the usual scenario. It ensures that the smallcase is the right choice for taking exposure to a particular theme.

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What Is Smallcase and How Does It Work?

A portfolio-driven approach is infused into Smallcases. Once you make a purchase, individual stock units will be credited to your Demat account. The underlying companies are not accessible in a mutual fund, where you only gain access to the aggregated fund.

Case in Point: Smallcase

Anugrah Shrivastava, Vasant Kamath, and Rohan Gupta founded Smallcase in 2015 to serve non-institutional investors with theme-based investments. To put it simply, Smallcases are modeled around legacy portfolio management strategies that were previously reserved for large investors (HNIs & HNWIs). SEBI-approved fund managers manage smallcase funds, which are a group of stocks based on a specific sector, technology, or theme. The fund managers can use this method to invest in multiple companies' shares when testing out strategies they believe will work well together in the future; it introduces a sense of diversification instead of cherry-picking 'industry stalwarts' among laggards.

What are Smallcases?

With Smallcases, you will be able to invest in stock units on a portfolio-driven basis; once you purchase stock units, they will be transferred to your Demat account. The situation is different when it comes to mutual funds, where you only have access to the aggregated fund and not the underlying companies.

What this also means is that when you invest in a Smallcase, you become a part-owner in every stock that is in the portfolio of your chosen Smallcase, and you are eligible for dividends and other rights assured to shareholders.

The cost of investing in Smallcases may be comparable to investing in mutual funds, and different Smallcases have different expense ratios as per the RIA (Registered Investment Advisor) handling the portfolio. However, no exit load was applied on Smallcase redemptions. Every charge applicable to stock trading is applicable to Smallcases too.

How does Smallcase work?

Getting started in investing through Smallcases mirrors that of investing in the stock market in general. This means that if you have a demat account, you’re good to go (Or you may open one through an RIA on SmallCase too). All-in-all, this process is very similar to investing in direct stocks – so a few correlations can be drawn. These are as follows:

To use Smallcases, you need to pay a one-time signup fee of Rs 100+GST

You can make a one-time, lumpsum investment in Smallcases or make periodic monthly SIPs as you go.

Trading and transaction fees, stamp duty as well as brokerage levies applicable are identical to those of typical stock investments.

Smallcases are subject to the same clearing and settlement rules as direct stocks; if you buy a Smallcase today, money will be debited immediately and stocks will be credited after the standard T+2 interval (Trading day + 2 days).

Are Smallcases suitable for you?

An investment in any asset class must make long-term sense for the individual investor- it must satiate their goals and reward them for deferring immediate fulfillment. Smallcases are no different. There is a wide variety of Smallcases on offer, ranging from those that aim to deliver high returns or the back of substantial risk, while there are others that aggregate companies with low beta and steady growth. Since Smallcases are largely thematic investments, you must have a researched view on the basket of underlying assets. Just glancing at the trailing CAGR will not suffice largely because they do not help you stay put when the market turns against you, as it inevitably does from time to time.

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What Is Rebalancing in Smallcase?

Smallcase rebalance is the process of periodically reviewing and making meaningful changes to your portfolio to ensure it continues to adhere to the original idea.

What Is Rebalancing in Smallcase?

At the point when you intend to visit a chilly city, you pack in woolen garments to guarantee your security. Likewise, you switch gears when you are hoping to speed up your vehicle's speed.

What we mean to say is we will quite often change consequently to guarantee we are best ready for the impending changes.

Essentially, when there is a portfolio update in smallcase, a rebalancing update is shipped off the clients to guarantee they are ready for what lies ahead.

This article examines rebalancing and its effect on your portfolio benefits.

What is rebalancing?

Smallcase rebalance is the course of occasionally assessing and rolling out significant improvements to your portfolio to guarantee it keeps on sticking to the first thought.

The client has the choice to go through the proposed changes and can acknowledge or dismiss the update. Be that as it may, avoiding the update can prompt your smallcase done following the first thought. Thus, it can affect your profits, and we recommend you grasp the monetary repercussions prior to taking action.

How does smallcase rebalance work?

As you most likely are aware, a smallcase is a crate of stocks that stick to a particular market technique/subject/thought. Each smallcase has an unpredictability variable to it. For instance, assuming you pick a low instability factor-based smallcase, it implies that you are putting resources into instruments that don't change essentially after some time. Portfolio refreshes in such smallcases generally occur once at regular intervals.

In any case, assuming that you are putting resources into medium or high unpredictability smallcases, these contain profoundly unstable instruments and may require an intermittent appraisal to figure out their future productivity. Portfolio refreshes in such smallcases happen once at regular intervals in the typical situation. It guarantees that the smallcase is the ideal decision for taking openness to a specific subject.

Read More About- Smallcase Research Blog

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Smallcase Vs Direct Stock Investments, which one is better

Smallcases are bundled and professionally managed investment products that consist of carefully chosen stocks and ETFs. How do they fare against direct stock investments? Let’s explore

Smallcase Vs Direct Stock Investments

"Know what you own and know why you own it."

These seven sagacious words by Peter Lynch summarize money management as an undertaking and how we ought to go about it. As a financial backer, assuming you put your cash in a couple of organizations whose business you comprehend, whose items and administrations you consider better (more cutthroat in cost or quality or both) than the remainder of the opposition and those that are controlled by pioneers you can trust, you will have taken care of your business competently.

Notwithstanding, the other side to this approach is that it becomes troublesome when the quantity of freely recorded organizations you can put resources into is huge. The sheer number of decisions might prompt a data over-burden for some and investigation loss of motion for other people. How would we pick a modest bunch of organizations among huge number of value recorded stocks? Imagine a scenario in which we pass up this great opportunity.

The response lies in investigating what works for you relying upon the return you are looking for and the gamble you're happy with taking on. In this blog, we will examine two methodologies putting straightforwardly into stocks or potentially getting involved with packaged ventures items, specifically Smallcases.

Before we continue, we should inform you really concerning Smallcase.

What is a Smallcase?

Smallcase is a web-based speculation stage that permits you to put resources into a bin of stocks and ETFs organized by specialists. It is not quite the same as conventional resource portion structures as it offers a more broadened and financially savvy method for putting resources into the value markets.

How does it work?

Smallcases are accessible (read coordinated) with the demat accounts of most driving stock representatives. Whenever you have opened a record with an upheld specialist and connected it to your Smallcase account, you can begin putting resources into any Smallcase of your decision.

Read More About- Smallcase Research Blog