What Is Smallcase and How Does It Work

1. What Is Smallcase and How Does It Work? What Is Smallcase and How Does It Work? A portfolio-driven approach is infused into Smallcases. Once you make a purchase, individual stock units will be credited to your Demat account. The underlying companies are not accessible in a mutual fund, where you only gain access to the aggregated fund. Case in Point: Smallcase Case in Point: Smallcase Anugrah Shrivastava, Vasant Kamath, and Rohan Gupta founded Smallcase in 2015 to serve non-institutional investors with theme-based investments. To put it simply, Smallcases Smallcases are modeled around legacy portfolio management strategies that were previously reserved for large investors (HNIs & HNWIs). SEBI-approved fund managers manage smallcase funds, which are a group of stocks based on a specific sector, technology, or theme. The fund managers can use this method to invest in multiple companies' shares when testing out strategies they believe will work well together in the future; it introduces a sense of diversification instead of cherry-picking 'industry stalwarts' among laggards. What are Smallcases? What are Smallcases? With Smallcases Smallcases, you will be able to invest in stock units on a portfolio-driven basis; once you purchase stock units, they will be transferred to your Demat

2. account. The situation is different when it comes to mutual funds, where you only have access to the aggregated fund and not the underlying companies. What this also means is that when you invest in a Smallcas owner in every stock that is in the portfolio of your chosen Smallcase, and you are eligible for dividends and other rights assured to shareholders. invest in a Smallcase e, you become a part- The cost of investing in Smallcases may be comparable to investing in mutual funds, and different Smallcases have different expense ratios as per the RIA (Registered Investment Advisor) handling the portfolio. However, no exit load was applied on Smallcase redemptions. Every charge applicable to stock trading is applicable to Smallcases too. How does Smallcase work? How does Smallcase work? Getting started in investing through Smallcases mirrors that of investing in the stock market in general. This means that if you have a demat account, you’re good to go (Or you may open one through an RIA on SmallCase too). All-in-all, this process is very similar to investing in direct stocks – so a few correlations can be drawn. These are as follows: To use Smallcases, you need to pay a one-time signup fee of Rs 100+GST You can make a one-time, lumpsum investment in Smallcases or make periodic monthly SIPs as you go. Trading and transaction fees, stamp duty as well as brokerage levies applicable are identical to those of typical stock investments. Smallcases are subject to the same clearing and settlement rules as direct stocks; if you buy a Smallcase today, money will be debited immediately and stocks will be credited after the standard T+2 interval (Trading day + 2 days). Are Smallcases suitable for you? Are Smallcases suitable for you? An investment in any asset class must make long-term sense for the individual investor- it must satiate their goals and reward them for deferring immediate fulfillment. Smallcases are no different. There is a wide variety of Smallcases on offer, ranging from those that aim to deliver high returns or the back of substantial risk, while there are others that aggregate companies with low beta and steady growth. Since Smallcases are largely thematic investments, you must have a researched view on the basket of underlying assets.