What is a smallcase?
A smallcase is a basket of exchange traded securities (like stocks & ETFs) in a specified weighting scheme to reflect a certain objective (ideas, themes, strategies). A smallcase has a minimum of 2 securities and a maximum of 50 securities.
How is it different from mutual fund?
smallcases & Mutual Funds both help you take portfolio exposure to equities, but smallcases are:
Transparent - See exactly where your money is going
Customizable - Modify your portfolio as you wish
Direct Ownership - Get stocks in your demat account
Liquid - No lock-in periods, exit anytime. But, smallcases work best when used for long-term investing
Simple to understand - smallcases are based on simple ideas you can understand. For example, India’s growing affinity for branded products.
How to invest in smallcases?
A trading & demat account with any of our broker partners is all you need. Start exploring smallcases. Once you have chosen a smallcase, click the Buy smallcase button & proceed. You can set filters to find a suitable smallcase or simply use the Find your smallcase tool.
Fees and Taxes
The charges for investing in smallcases are as per the broker’s guidelinesand only apply when you transact.Visit the help page on your broker platform for more information.
For smallcases of stocks, the taxes are the same as equities - Long-Term Capital Gains (> 1 year of holding) are 10% of the total gains (if gains for the year exceed ₹1 lakh) and Short-Term Capital Gains (< 1 year of holding) are 15% of the total gains.
For ETF smallcases, each ETF has its own taxation. Check the smallcase FAQs on your broker platform for a breakdown of the ETF taxes.
Can i buy Smallcase as a SIP?
Yes, you can buy and start a SIP in a smallcase in 1 click. You'll see an option to start SIP while buying the smallcase. We'll send you a reminder notification on the platform aswell as an email on the due date; just confirm the payment and done. SIPs start for as low as 5k!
Do you get the dividends from smallcases?
Dividends for any of the constituent stocks in the smallcase will be credited directly to your bank account. We also have smallcases centered around dividend investing. See how you can track your dividend returns.
What is rebalancing?
Rebalancing is the process of reviewing the stocks/ETFs of a smallcase to ensure that it continues to reflect the underlying original idea. It takes into account fundamental factors,company updates, etc. to objectively narrow down on the right stocks/ETFs & their weightage.
Rebalancing is done by the research team/creator of the smallcase as per its schedule. It is not an automatic process; you would be notified via email when a smallcase you have invested in has a rebalance update available. You can review the changes and apply the update in 2 clicks. Want to learn more? See our blog on Rebalancing 101.
Who manages smallcases?
smallcases are created & managed by SEBI-registered professionals who eat, sleep & breathe the stock market.The constituents in every smallcase pass stringent proprietary filters so that you don’t have to worry about making individual choices. Watch this video for more.
Watchlist and Drafts
You can track the performance & risk a smallcase before investing by adding it to your watchlist. Similarly, when you create a smallcase, you can save them as drafts before investing to track how they perform. You can always edit your drafts.
Creating your own portfolio
If you have a list of (up to 50) stocks that you like or have been recommended by a trusted source, you can also create your own smallcase. You can also save it as a draft to track its performance before investing.
Orders and History
All orders placed for smallcases in the individual batches (buy, invest more, SIP, manage, rebalance, exit) can be found on the Orders page. If you expand a batch, you can see the quantities & prices of individual stocks.
Tracking a Portfolio Of stocks
When you buy a smallcase, an index value of 100 is assigned to it. Say, after a year, your index value is 124 - meaning your smallcase has returned 24%. With the index value,you don’t have to track stocks individually. There are other performance metrics available at the portfolio level to give you more detailed insights