What Are Smallcase investments? – A Ten-minute Guide

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There are many ways to invest in the stock market. Either you can contact a broker to buy individual shares or you can invest directly in an equity fund. However, like everything else, the investment market is changing every day. The smallcase technology is a modern way of investing in stocks. The brokerage services are now presenting the investors with an option to buy an entire stock portfolio. These portfolios are built around a theme, and it can benefit you largely. This facility is presented by a platform that has been developed by a Bengaluru-based company, named Smallcase Technologies.

This platform allows you to use your demat and trading accounts to find well-researched portfolios that offer a great range of themes to select from. This equity smallcase investment option has already revolutionized the equity-based investment options. As an investor, you will have complete control over the securities, which are held in your demat account. Currently, t seven brokerage services are allowing investors to use the platform.

How does it work?

To invest using the smallcase portfolio, you need to access it through your broker. You will then find the portfolios with information regarding the stocks that are used and their proportions. You can remove or add stocks according to your liking to customize the portfolios. Some brokers also offer already curated portfolios where you can directly invest, without having to customize it.

Once you have finalized your portfolio, you can buy the smallcase and the platform will immediately initiate a buy order for all the stocks in the portfolio. If some orders are not completed because of any issue related to equity, the platform will present you with a ‘repair’ option. You can use it to complete the order for the remaining stocks.

You have to pay INR 100 to the broker for each smallcase when you invest for the first time. Other than that, you also have to pay the trade execution cost. There are no additional charges. As the portfolios have to maintain a theme, they have to be rebalanced quarterly. You need to sell the stocks that do not match with the theme and buy newer ones that maintain the same theme. You can exit the portfolio whenever you see fit and can sell selected stocks from it.

Is it right for you?

Smallcase investments come with great flexibility. You can build a portfolio and change it to fit your goals. This is perfect for you if you are an investor who likes to maintain a particular theme with your securities. It works great as a long-term investment opportunity with the option for systematic investment plans.