Smallcases: The new investing technique

In 2015, Bengaluru-based smallcase Technologies paved a way for modern investors to invest in a much easier and risk-free way by introducing a platform and technique of investment known as smallcase.

It’s a modern investment product where there are curated Stock portfolios which have become the new way of investing in mutual funds. The platform provides baskets of stocks with different themes, strategies, and allocation processes allowing one-click investment in the basket or portfolio of stocks.

These stocks or portfolios are known as ‘smallcases’.

With a small case, you can create a set of shares in the equity market and put a SIP on them. This will make your investment process easier and more efficient.

In Mutual Funds, there are multiple companies and fund managers sitting who handle all the funds there. For example, there is an Electronic Vehicle Mutual Fund and there are shares of multiple companies in it. The fund manager handles the funds and removes ‘Company A’ because after analyzing and studying he knows that ‘Company A’ won’t be doing good, so the manager removes that, and adds a better performing company.

Similarly, small cases give investors the power to be their own fund managers.

How does smallcase work?

If you add 3 companies to your small case, it will tell you the past record of the past 5 years of those shares, and also how the shares will do further in the future. Therefore, small cases give investors the liberty to create their own portfolio

In a small case, you can have diversified portfolios.

Like, instead of investing in mutual funds you directly invest in equity. But if you don’t want to invest in just one sector, smallcase helps you invest in multiple sectors.

For example, you can create your smallcase consisting of a metal company, an electronic vehicle company, an oil company, and a pharma company. 

Like this, you can accumulate 10 shares that you may not want to buy directly from the equity markets.

Therefore, smallcase lets you DIY your shares and helps to invest easily.

 Why should you invest in Small Case?

Small cases are perfect for everyone. Especially investors who intend to build long-term diversified portfolios. Any stock registered with the Securities and Exchange Board of India (SEBI) can offer a basket of stocks on any smallcase platform.

The well-analysed stocks, the different metrics, easy access across the various stages, market segments, the different sectors, and risk profiles make a smallcase an amazing modern investment option.

Also, smallcase investment puts shares in your Demat account. This is beneficial as the investors get tax-free dividends directly in their bank accounts.

Dividends are the reward, cash, or profits that companies give to their shareholders.

In smallcases, there is a predefined list of stocks known as ‘dividend star.’ All the companies which give good dividends every year are added to the list.

Investors can directly invest in those companies, and can also modify them. Therefore, smallcases give investors a delightful investing experience.

Caution: It is advised that first-time investors consult a financial advisor or expert before investing in a small case. The changing market trends might be risky and not suitable for new investors.