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 centred around:
  • A trending market theme like rising rural demand or
  • A financial model like zero debt or
  • Different risk profiles viz. aggressive, balanced and conservative 
You can choose a smallcase based on a theme that you are positive on, invest in it in 3 clicks and track & manage multiple portfolios seamlessly. Smallcases aren't a means of recommending or advising investors. Choosing a smallcase is upto each individual. 

Are all stocks available for smallcases?
As of now, only NSE stocks can be added to smallcases while creating, managing or customizing. Also, all smallcases are currently made up of NSE stocks only

Will the stocks purchased through smallcases reflect in my Portfolio?
Yes. Any buy or sell orders placed for smallcases will reflect in your portfolio on the next day of trading.

How long I can hold a small case?
There are no recommendations provided on when to buy or sell a particular smallcase. It's upto each investor to decide which theme will work and when to buy or sell. For smallcases, the stock selection for a theme is a result of well documented research processes and it's ensured that the selected stocks aptly represent the particular theme.

Sometimes markets over/under-react to events in the short term which should auto-correct with time. You might make more profit by selling before an event or after. You would be notified when the theme of a smallcase you hold has completely played out or factors driving a particular idea/model have changed

Smallcases are portfolios of stocks that reflect a market theme. Unlike mutual funds, smallcases provide you exposure to trending market themes (GST, smart cities) & investing styles & strategies (Buffett, Graham, Greenblatt). Also, smallcases are liquid, inexpensive & are centred around relatable themes. 




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