Types of Smallcases

1. Types of Smallcases Smallcase is a unique way of investment, and the rising trend in active stock market investments and increases in the investor’s knowledge base may soon create a huge market. There are different Smallcases available today that suit each investor’s needs. In 2015, three IIT Kharagpur graduates came together to form Smallcase and gave a new direction to how retail investors could put their money in the stock market. The investor wants to develop a portfolio based on different aspects. Smallcases are baskets of stocks curated using different themes or concepts to create a long-term portfolio with possibilities to diversify as per the requirements. There are different Smallcases available today to suit your investment profile. The types of Smallcases Smallcase is a basket of stocks/ETFs created based on an individual’s risk appetite. Different smallcases have different ingrained concepts; given below are different types of smallcases. Trend-themed: Creating a portfolio requires developing a logical approach towards including different combinations of stocks, ETFs, or any other asset class. A trend-themed portfolio places conviction on different trends in the

2. market. Smallcase based on the trend concept requires rebalancing from time to time with addition and replacement of trend following components. Examples: TrendlineZ Balanced and Rising Rural Demand Volatility-themed: Market dynamics keep on shifting, which happens with different stocks traded on stock exchanges. Indian stock exchanges have the same methodologies of operating. Smallcases created using this theme can be further categorized into three types: 1. Low volatility – Smallcases under this theme are preferred by new and risk- averse investors who do not like many swings in their portfolio in a small period. These are constituted of asset classes that have a proven track record of stability and safety. Their smallcase tries to achieve higher with a relatively lower risk profile. Examples: Bharosa Club Top 150, ICICI Prudential Leaders 2. Medium volatility – High conviction stocks that follow a stable market cycle but have volatile movements often constitute this type of small case. Slight risk-averse investors who wish to increase their return through incremental risk choose this type of smallcase. Examples: Rising Rural Demands, Dividend Aristocrats 3. High volatility – The smallcases are preferred by seasoned players, who take high risks to earn higher rewards. These smallcases are created using volatile assets. Volatile smallcases need quarterly review and rebalancing. These are created using stocks regarded as undervalued as per expert methods. Examples: High-Quality Right Price, Growth at a Fair Price Beta-themed: Smallcases created using quantitative investment strategies based on mathematical and statistical concepts. These smallcases use a quantitative approach to extract a favorable rate of return on your investments. Read More About Unboxing Smallcase