What is a Smallcase Portfolio and How to Track It?

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  • 15 Mar 2023

There are three steps involved in investing in smallcase stocks. The first step is to invest, and through this process, the stocks get added to the Demat account of the investor. The next step is to track the investments. The tracking process includes evaluating the portfolio based on performance, and the returns, in terms of dividend and market value. The final step is to manage the portfolio by editing, selling, buying, or rebalancing the stocks.

Tracking Smallcase Portfolio

To track smallcase portfolio, it is important to know the performance metrics that help an investor understand how the investment is doing. These metrics are headers in the dashboard of the smallcase investment account.

The investment page shows a summary of all the investments in smallcase and the returns from it. The details of a particular smallcase can be viewed by clicking on the smallcase. This provides details of whether there is an active SIP, index value, current value, current returns, and total returns on the portfolio. The Index Value has an assigned value of 100 and the profit or loss percentage is added to it. Index Value helps an investor know the return from the portfolio instantly. The other headers are discussed below.

In the initial stages of the portfolio investment, the Current Investment and the Money Put In values are the same.

  • Current Investment is the price at which the stocks were purchased.
  • Current Value is the market value of the stocks.
  • Money Put In is the actual money paid for the investments.
  • Current Returns is the profit/loss in the stocks, i.e., it is the difference between the Current Value and the Current Investment.
  • Total Returns is the total of Current Returns and Realised Returns. 5.29% seen in the picture is calculated by dividing the Total Return by the Current Investment and is shown as a percentage.
  • Realised Returns is the profit or loss from the sale of stocks. In the example above, there is no sale, and so the Realised Return is zero.
  • Dividends show the dividend received on the shares.

When the investor decides to rebalance the investment or sells/buys stocks, the value under Current Investment and the Money Put In, may vary. This happens because there may be a profit or loss on the sale of shares, and the profit/loss amount gets added to or deducted from the Demat account. If the investor wants to invest more, the investor adds funds as required based on the net investment. Image 3 below shows the situation where the Money Put In, is lower than the Current Investment, as the net proceeds from the sale was a profit.

When a portfolio is rebalanced, stocks get removed (sold) or added (bought), and the weighting moves the mix of stocks in the portfolio, closest to the prescribed weighting, ensuring minimal cost of rebalancing to the investor. The investor can choose to exit partially, depending on the kind of portfolio. The profit or loss from the sale of stocks is reflected under Realised Profits.

If the sale price or market value is higher than the average buy price, it would be a profit otherwise, it would be a loss. The Money Put In shows the amount actually transferred to generate the profit or loss.

Tracking a smallcase requires good knowledge and understanding of the capital markets and trends. It is necessary to track news and performance of the smallcase regularly. The investor cannot invest and just let it lie. It is important to exit or rebalance the portfolio at the right time. Portfolio advisors regularly notify investors recommending rebalancing. Investors can also create a watch list of portfolios they are interested in to track it before investing.

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