Investing in the stock market requires a certain understanding of the stocks and their performance along with the time to actively trade in them; disposing of non performing stocks and investing the money in better performing ones. This requires time and knowledge of the specific stocks or sector and keeping a tab on the market, which could be cumbersome for some retail investors. Smallcase investments are a type of investment that offers a hassle free, low cost, convenient mode of investing in stocks in different sectors.
Smallcase Investment Portfolio can be called a PMS or Portfolio Management System for the retail investors who want to invest small amounts in stocks. The Small Case is particularly suited to retail investors as the cost of investment is lower than the entry level cost for PMS.
Smallcase caters to a curated list of specific stocks from a sector or theme. For example, there are Small Cases that invest in specific sectors like Energy, IT or pharma, or they could be investing in a theme like the Atma Nirbhar Bharat etc. They help investors to build a portfolio that is diversified and needs minimum management. Therefore, a small case portfolio can also be referred to as a stock basket or ETF.
The curated list of stocks in Small case may invest with a particular objective like growth or dividend as well. Due to their sheer convenience, Small cases are becoming the buzzword in stock market investments.
Smallcase Portfolios are created by SEBI registered portfolio managers, who have been exposed to the stock market for many years and are experts in their field. Each component in the small case goes through stringent filters to create a portfolio.
The investment into Small Case is done collaboratively with the investor, portfolio manager/curator and the stockbroker. The three parties come together on the Small case platform to curate the list of stocks that best suits the investor's individual preference with respect to the theme, idea or sector they want to invest in.
To invest in a Smallcase, an investor needs to follow the below given steps:
1. Login to the Small case website or app with a mobile number
2. Choose the Small case based on individual risk appetite, objective and theme.
3. Pay the subscription fee if any. Some Small cases have a subscription fee while others come free.
4. Once the Smallcase portfolio has been chosen, the final step is to invest in the stocks so selected.
The decision to invest in a smallcase is not too difficult because of its simplicity and convenience. The points below show why investing in smallcase is a good decision.
1. Investing in stocks requires in-depth knowledge and a lot of time consuming market analysis. Smallcase allows you to invest in a portfolio of curated stocks. This is easy and does not require active participation from the investor in terms of stock restructuring.
2. The amount to be invested in Small Cases is less so this comes through as a more convenient investment into equity markets for the retail investors.
3. The smallcase portfolio is curated with the focus on diversification, which is better than investing the entire money on one or two stocks.
4. There are no expense ratios or lock in periods connected to Smallcase investments. Investors may buy or sell their stocks as per their interest.
