What is smallcase? How are they different from Mutual Funds? | 5paisa

What is smallcase? How are they different from Mutual Funds?

Smallcases are a new way to invest in stocks. A smallcase is an intelligently weighted basket of upto 50 stocks that reflects a theme, idea or strategy. 

Smallcases are centered around:

A.        A trending market theme like rising rural demand or

B.         A financial model like zero debt or

C.          Different risk profiles, viz. aggressive, balanced, and conservative.

With smallcases, you directly own thestocks in the collection, allowing for more control and customization, whereas, with mutual funds, you own shares of the fund itself, managed by a professional fund manager. Additionally, smallcases typically have fewer fees compared to mutual funds, and you can buy and sell smallcases easily, while mutual funds often have redemption fees and may take longer to process transactions.



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