The smallcase is the new way of investing in stocks. It allows its users to buy ready-made portfolios directly instead of going through mutual funds. It’s centered around trending market themes, financial models, and different risk profiles.
It’s a Bengaluru-based Fintech company launched by three IIT graduates in 2016. Currently, 13 brokers offer this avenue, including HDFC Securities, Kotak Securities, Axis Securities, Zerodha, and Edelweiss. It allows the investors to take exposure to professionally researched portfolios with their existing trading and Demat accounts.
It’s based on simple ideas that you can understand. And created by India’s leading financial experts and is fully customizable. You can easily add or remove the stocks of your choice. It consists of upto 50 stocks that reflect a theme, idea, and strategy.
Some of the various themes on which smallcase is based are – Pharma, Insurance, Real Estate, etc. You can see the stocks that make up the portfolio, their proportion, and the investment rationale.
Is Investing Through Smallcase Safe Or Not?
One cannot doubt the safety of Smallcase, as they have been working for more than 5 years, offering detailed and safe help to their investors.
What makes Smallcase safe?
- Smallcase is Subsidiary company of Windmill Capital Private Limited which is SEBI registered (SEBI Registration No – INH200007645).
- A team of skilled, professional, and experienced people to help their investors.
- Working with big investors like Blume, Faering Capital, Beenext, Amazon, Arkam Ventures, etc.
- They offer portfolio-based investing experiences.
- They offer ready-made themes and strategies.
- Investment at any amount is accessible with Smallcase.
This is not the end. You may find a lot more features, benefits, and success about smallcase. However, even these small points enforces us to trust smallcase strategies and investing plans.
Just like any other brokerage company, there is an exchange of money and stocks. Similarly, money is debited from your trading account when you invest in the smallcase, and stocks are credited into your Demat account. You can sell these stocks whenever you want as there is no lock-in period.
If you have a long-term view of investing in the stock market, you can put your money in a smallcase. If investors are in the short run method, then they should consider other alternatives.
Also Read: Demat Account: Benefits, Aims And Objectives
Types Of Smallcase Accounts
2 types of smallcase are :
- Free
You have to give a one-time fee depending on the broker at the time of purchase. Other than that, there is no subscription fee at all. You are allowed to see the stocks and their respective weights.
- Paid
These are subscription-based smallcase accounts where you need to pay a definite amount upfront. To invest in different smallcase accounts, you have to pay a different definite amount.
It’s like a gadget for the people who are confused between mutual funds and stocks.
In the case of a smallcase, you own the stocks directly. On the other hand, in mutual funds, you only hold the units instead of stocks. In a nutshell, you are buying and selling stocks directly, in the case of smallcase. As a result, capital gain taxes are applicable to all profits. But buying or selling in mutual funds does not result in capital gains for fund investors.
One will experience the biggest difference of investing directly in mutual funds versus investing in smallcase. In equity mutual funds, you do not know what your funds own at any given time. But in the smallcase, you know that the holdings sit in your Demat account at any given time.
Currently, 250 baskets of stocks exist, and among them, 120 are managed by the SEBI-registered Smallcase managers. Anyone who is registered with SEBI can offer a basket of stocks. The most popular managers are Windmill Capital, Weekend Investing, Capital Mind.
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Keynote
Yes, Smallcase is safe and secure and It is Subsidiary company of Windmill Capital Private Limited which is SEBI registered (SEBI Registration No – INH200007645). Also, A team of skilled, professional, and experienced people to help their investors.
To buy the smallest basket, you need to contact one of the 12 brokers. Through them, you should be able to decide on which one to buy. It offers you the control to accept or reject the change recommended by the smallcase manager.
Smallcase continue to attract the investors by the lackluster performance of mutual funds, the urge to do-it-yourself and the younger investors participating in the market.
If you want to control your portfolio but don’t have time, you may consider investing in a smallcase. Buying a ready-made portfolio is an advantageous option, and it’s totally up to you to assess whether it fits you or not.
