How Do I Buy/Sell Shares in Smallcase?

How Do I Buy/Sell Shares in smallcase?

Smallcase portfolios are created by brokers using the platform, and each broker has a different link/interface for access to portfolios created. These interfaces generally display all baskets, recommended baskets, customised baskets and details of holdings/transactions of the investor in smallcase.
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  • 05 Feb 2023
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Smallcase is a platform that has empanelled brokers, investment advisors and independent research firms, to build a portfolio of stocks and ETFs for retail investors. These baskets of stocks are based on an idea or a theme. They are curated by professionals after thorough research and study of the company and stocks. A retail investor can invest in these baskets of stocks, through brokers enlisted on Smallcase.

  • To begin with, the investor should have a demat and trading account.
  • The first step is to log in to the account on the broker website, or find the relevant broker on www.smallcase.com.
  • Then the investor can view multiple ready-made baskets created by professional advisors.
  • The investor can either select these baskets by clicking on invest now, or modify the basket, if allowed to do so. Only some baskets can be modified.
  • In case of recommended/ready-made baskets, the investor will have to choose the basket and click on invest now. There is a minimum investment required for ready-made baskets, and the amount changes from one portfolio to another. The investor then specifies the amount of investment, which will display the ratio of stocks for the specified amount in the basket. An order can be placed to complete the order, by following the instructions.
  • To invest in certain portfolios, it may be necessary to subscribe, while others are free. The investor has to judge whether to subscribe, as there are many portfolios which are free for investment.
  • An investor who wants to create a portfolio basket, should have a good understanding of the capital markets and can pick stocks based on a theme/idea. A minimum of two stocks are required to create a basket. The order can be placed once the investor has added stocks and is satisfied with the portfolio. Only NSE stocks can be added to create or customise. Some interfaces provide suggestions of similar stocks.
  • Investing in a recommended basket saves time and effort for investors and also provides the opportunity to capitalise on the knowledge of experts.
  • The investment can be a one-time transaction or in the form of SIP (Systematic Investment Plan). Monthly, quarterly, or yearly SIP options are available. SIP can be edited or ended at any time. By using SIP option, the investor gets the benefit of compounding, can average out the cost of investment and cover against volatility of the market.
  • The onus of entry and exit in any portfolio, is on the investor, and so it is important to be prudent and cautious, which requires knowledge of the stock market. Investors can choose to invest more or exit a portfolio.
  • Exiting smallcase is basically selling the smallcase stocks. This can be done on the interface the broker provides, by following the link for exiting smallcase. The sale price of shares are displayed, and the investor can take a decision to place the order and confirm.
  • The exit may be partial, by selling individual stocks, or complete exit from the basket. This however depends on the kind of basket, as some recommended baskets do not allow changes and would require complete exit. Exit from the basket can be done at any time.
  • In the case of partial exit, the maximum amount for which an exit order can be placed is displayed, and once the amount is confirmed by the investor, the weighting scheme adjusts the amount for which order can be placed.
  • Investors are notified by the broker about exit time in the case of recommended baskets. The investor can then decide to sell based on the exit call recommendation. This recommendation helps to protect against losses or to maximise gains.
  • Basically, the process of placing an order to buy or sell stocks is similar to normal buying and selling of shares, but is done through the smallcase user interface and it depends on the kind of basket.
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