What Is Smallcase And How Does It Work?

Whether you are just getting into the markets or have experience, sometimes, a plethora of stock options can lead to dilemmas such as over-diversification, derailing from strategy or convoluting one’s portfolio. This is where smallcase comes in handy. Here, a selected team of SEBI registered professionals do market research on metrics such as CAGR, and accumulate stocks for you to invest in basket orders, without the hassle of overthinking.

If You Are A Beginner

You possibly would like to take baby steps before diving in. Say your portfolio objective is to start in the markets with a low investment amount. Simply get in touch with a broker on smallcase, share your objective and get a whole list of stocks which reflect investments of Rs. 500 and below. From here, all you have to do is select the stocks which appeal to your portfolio and add it in a basket order. Similarly, if you aim to start with low volatile stocks, smallcase researchers have it pooled in for you to select stocks with low volatility to add in your basket. The primary benefit of smallcase for a beginner, is that one has the opportunity to start their investment journey slowly, allow experts to handle the gritty market research, and not take the stress of deciding which stocks are right or wrong for your investment goals.

If You Are Experienced

Smallcase is a great way to organise your portfolio. Instead of buying a little bit of everything, you can plan your portfolio thematically and track progress in a unified manner. This not only helps in cleaning up your portfolio of possible stocks which you may have forgotten about over time, but also helps you better manage your investment goals in the long run. Another great benefit is, say you enjoy investing in a particular theme of stocks but now want to diversify into other themes. Smallcase portfolio managers have extensive research and data to help you do exactly that, with ample tracking within diversified markets to stay in line with your portfolio objectives.

Some Things To Keep In Mind

• There are fees that you pay such as an AUM-based fee, where you are charged a percentage of your investment amount and a flat fee for every stock placed in a basket transaction.
• One should also check the minimum investment amount for a particular stock in a basket.
• You must have a Demat account before starting investments.
• The smallcase ecosystem is relatively new and in its embryonic stages, so individual research is recommended to see if this is a good fit for you.