What is a Smallcase?


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Smallcase is a new phenomenon for retail investors. It is curated either by the smallcase team or independent advisors for portfolio managers. A smallcase invests in a basket of stocks or ETFs.

After you create your own smallcase or subscribe to one, you can place an order to buy the whole portfolio with just one click, see the transaction happen in real-time and also monitor the performance.

A notification on the smallcase app which is also sent over email lets you know when a change to the portfolio is due. The user logs in and clicks the ‘ rebalance’  button, and confirms the transaction. The smallcase platform places the buy and sell orders through the regular trading account and also confirms that the transactions are executed.

It is a Bengaluru-based technology that is paving the way for modern investors and allowing them to choose from professionally tailored baskets of stocks that reflect an investing idea or strategy. At the moment, six brokers have a collaboration with the company and are offering this platform.  they are:

  1. Kotak securities
  2. 5paisa
  3. Edelweiss
  4. Zerodha
  5. Axis securities
  6. HDFC securities

Procedure

A smallcase account allows an investor to sell and buy tradable securities based on the predefined combinations. You can follow the steps given below to use the platform:

  1. Visit the smallcase website And click on the ‘Login’ option. You can use the credentials that are provided by a broker to log in. However, in case you used any other broker other than the ones mentioned above you may not access the services.
  2. Once you have logged in, you can choose from the array of themes like all-weather, Smart beta, bargain buys among others
  3. Now you will be able to see stocks that form the portfolio, the proportion and the logic behind the inclusion. You can also customise the smallcase by adding or removing stocks.
  4. Although some brokers allow you to create your own personalized smallcase, others also offer curated smallcases.
  5. Once your smallcase selection is finalized, you will be prompted to the payment gateway. The price and weight of individual stocks will determine the minimum amount you have to pay for the smallcase.
  6. Once the payment is complete, the buy orders for all the stocks will then be executed immediately depending on liquidity.
  7. In case illiquidity leads to the non-fulfilment of a few orders, the investor will be able to go back and ‘repair’ their order, at that time or later,  upon which a fresh order will be placed. Repairing is necessary to ensure the portfolio matches the original theme.

Charges

In the case of All Weather investing and smart beta so smallcases: Rs 50+ GST

For all other smallcases like  sectoral, thematic, model-based, equity and gold smallcase: Rs 100+ GST

These charges are one-time fees for one smallcase. For further orders in the same smallcase, no extra charges will be applicable.

However, the regular brokerage and other charges for selling and buying stocks will be deducted for every order.

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