SmallCase – Make Stock Investing Easy | Complete Guide

• 9 April 2020 | 3025 Views | By Mint2Save

Stock Investing always gives us a vague idea of risk with investment. The concept of investment might sound alluring, and more often than not, we try to invest whatever money we have. However, this investment sticks to fixed deposits or buying some valuable items. 

The old school and supposedly the safer idea of an investment that we all have. Investment in stocks scares us only because of the potential risk factor that is associated with it. Although we have an idea that the returns in these investments are far more than the safer options, we try to avoid trading in this path. 

However, it is always not the risk factor that demotivates us from this path. Our lack of knowledge about this entire investment plan is limited. Extending our horizon to learn more about this plan and be a more active investor is something most of us are not willing to be. In such a scenario, it is best to start stock Investing with smallcase.

How do I begin to invest in the stock market?

In order to begin investing in stock market, one has to open a demat cum trading account. It acts as a port from where stocks can be traded and stored. Several brokers provide the facility to enable easy investing in the stock market, and let anyone with verified KYC start right away.

What is Smallcase Investment?

Ever been to the fruit market? Have you seen the vendors pack different kinds of fresh fruits in a basket for a customer who wishes to give this basket to someone? Well, just like that basket of fruit, smallcase provides a small basket of stocks. This basket, similar to the fruit basket, represents a thought or, more specifically, an idea. 

The idea that is investable and smallcase manages the whole basket for you. Of course, you get to choose your basket and idea as well. But just like the fruit seller who exactly knows which fruits will look better in the basket, smallcase provides you assistance with professional research and mastermind backups to help you choose your stock investment idea.

Is Smallcase good for investment?

Let’s see what all benefits the smallcase provides. 

Lowering the risk factor through diversity

The thing that scares us off from investing in the share market is the risk factor. Every now and then, over the internet, newspaper or the television, some expert would pop in, telling / asking us What are the best stocks to invest in?

Smallcase helps us erase this fear and invest only in the things we understand. The ideas which we are comfortable in, the stocks related to only those can be clumped together for investment. 

Now when we speak of an idea, multiple stocks come up for investment. Smallcase allows investing in various commodities. This diversification, in terms of finance, benefits the investor. The risk factor reduces, and the return is worthwhile enough. 

Like mutual funds, diversified investment is a smart move. However, smallcase limits the diversity to around twenty stocks so that the management is more comfortable. Stock selection is more refined with a smaller number. Too many stocks can set us wondering about too many things. So little but a smart low-risk investment is a critical way for smallcase. 

No managing fees 

The diversity comes with the price of managing the stocks that you’ve invested in. This price is, however, not charged by the smallcase. The zero management fees the investment even smoother. The focus stays only on selecting the right stocks. The smallcase also offers low cost with long-lasting portfolio investment. These require patience and flexibility of managing them for the whole investment term. 

The burden of the management is taken care of by the smallcase. The design is set right by the team behind the smallcase. Their fantastic service is commendable. The stocks are just a click away on your computer screen. 

There is a hassle-free and safe service of going through your shares and keeping an eye on the updates as well. The fees are only the investing fees that are debited during the transaction. The more you save on other services, the more you get to invest and more the return. 

Complete control always

Smallcase does not interfere with the authority that you have on your stocks. The control over your basket of the idea is entirely yours. Smallcase assists with selection and management, but it won’t become an obstacle in your way of maintaining and securing your stocks. Be it a long term portfolio or a short period one, the decision of calling the quits is yours to make. 

The recommendation and market analysis are provided whenever needed. The entire process is made as smooth and seamless as it can be. There is no period of locks imposed on any of your stocks. The investor gets the dividend on each stock investment in due time and can also keep track of it. 

Professional Research goes into the stocks

As the share market is not the cup of tea for a layman investor, one needs some help with investing in their choice of stocks. To bridge the knowledge gap, smallcase steps in with their exceptional features and services.

The stock collection for building up an idea wise investment simplifies the process of investment. There are several sections under smallcase that have been curated with professional research by the masterminds of the financial world. Let’s look into some of these. 

Be Beta Smart 

Smallcase has three Smart Beta initiatives that are: Dividend, Low-Risk, and Quality Smart Beta. The Smart Beta encapsulates the strategies that plan to overthrow the market at large-cap. The three smallcase smart betas are discussed in details: 

1. Dividend Smart Beta

The daily change is a negative percentage of about 0.08. The CAGR value is 13.22%, and the minimum amount is about thirty-seven thousand. The smart beta in this segment is comprised of the companies which increase their dividend amount on a fixed basis. 

2. Low-Risk Smart Beta

The low-risk beta has a daily change of 0.77%, with a CAGR value of 16.04%. These are mainly focused on long term investments which have a minimum amount slightly higher than dividend beta

The large-cap stocks are a good investment for the smart beta. 

3. Quality Smart Beta

The quality betta is equally large-cap with high quality company-wise long term investment. It has a more top daily change of 1.21% and a CAGR value of 14.21%. It has the highest minimum amount of around 43k. Quality is the main priority; hence the price is higher. An excellent return for continued investment. 

ETF Smallcase 

Under Exchange-traded funds, there are a total of six smallcases. The lowest ETF minimum amount is Rs. 310 for ICICI Prudential Leaders. The daily change is a negative percentage, with a CAGR of 9.54%. This again is a long term investment plan for significant capital. 

Another Interesting ETF is the ‘ all-weather investing’ ETF, which protects your investment even in a period of recession. This ETF allows diversity through gold and fixed rates too. Separate Equity and Gold ETFs are also available for Rs. 129. 

Smallcases for the top 100 stocks are additionally available at a price starting from four hundred bucks. The other two ETFs are categorized under ICICI Prudential Diversified and ICICI Prudential Smart. 

While Prudential diversified is specifically a long term investment, Prudential Smart is somewhat flexible with volatility. The daily change for every ETF is low enough, and the small cases are safe sufficient for investment. 

Smallcase for one and all

Smallcases are available for everyone. Along with ETFs and Smart Beta, there are ten other smallcases for specific sector tracking. Three smallcases are covering the reforms of the government. Dividend income-based smallcases count is three for now and likely to increase in the near future. 

The dividend aristocrat section itself has six specific smallcases. The long term smallcases guarantee the best returns, and hence there are eight such smallcases designed for the investors. The list goes on. The investors can create their portfolio and invest accordingly. The flexibility and the freedom to choose and edit smallcases stocks is not bounded at any stage of the process. 

Which is better: Smallcase or mutual fund?

With mutual funds and fixed deposits, taking a backseat in the investment sector, the investors are looking out for better opportunities. Smallcases bring all the stock exchange packets under one umbrella and make it easier for the investors to play safely in the share market. 

As the management and tracking of the stocks are facilitated by smallcase, the entire process becomes simple. With plenty of options for diversification, smallcases are the right way forward for new investors. The low risk and ample flexibility allow investors to have full control over the money that they invest in each share.

Be it a long term or a short contract, smallcases caters to every individual need. The rates and returns are calculated accurately for each investment. Smallcases make each penny of the investor worth the investment.