SmallCase Review- Is It Worth Investing?

Smallcase is a technology company based in Bengaluru. It is trying to build a platform for investors and brokers to invest in stocks and pull out a high rate of returns. It’s a shorter and safer version of the stock market. It not only is based on ideas and themes but also various strategies and one can invest accordingly. Smallcase allow users to choose according to their ease and preferences, diversifying the platform and letting them invest at their comfort.

smallcase review

Collaborators

As of now, some brokers have collaborated with the company and are offering stocks. These collaborators include Kotak Securities, 5paisa , Zerodha and Axis Securities and many more.  There are various other collaborators that have collaborated. 

What Is Rebalancing and Why Is It Vital?

Rebalancing stocks is very vital. One should know when to buy and sell and balance their stocks at a stipulated time period. In the case of Smallcase, a notification is released  about rebalancing depending on the term of the stock. Long term stocks send a monthly rebalancing update whereas short-term stocks send a weekly update. 

Info On Smallcase

Before diving into Smallcase, first one needs to learn about direct stocks and mutual funds. Direct stocks are stocks in the share market where people invest in. Mutual funds are a portfolio of stocks, bonds and securities that is generally managed by a professional. It is based on a specific strategy.

Coming back to Smallcase, it falls somewhere in between stocks and mutual funds. It is a model portfolio which can be brought to your Demat account. You need semi- expertise in Smallcase as you can hire someone to handle your account. The advisor creates a portfolio for you, and then you can have full control over your stocks. Small case have lesser risks involved and can have anywhere between moderate to high rates of returns. There are also various themes like IT firms, eco-friendly enterprises and more.

Smallcase have grown rapidly over the years and have managed to show steady growth. 

Why Should One Invest In Smallcase?

As Earlier mentioned, Smallcase have been designed in such a way that it gives you an overview of what the stock market, as well as the mutual fund market, can look like. It has both factors I’m can be quite beneficial for someone who has just stepped foot in the share market. Small case are designed based on various ideas and themes and hence one can choose options based on their preferences.

SmallCase- User Experience 

Users have talked about choosing the right advisor for oneself while investing in Smallcase. They have mentioned you can either make it or break it according to your advisor. They have said because of its diversity it is a good short-term investment, but one needs to rethink while investing long-term. The advisor should match your investing personality and should suggest your investments based on what they have invested themselves. They should have a good reputation in the market. People have mentioned Smallcase are useful for anyone who has some knowledge and expertise in the stock market. So far, Smallcase have earned good reviews.

Steps to Use The Small Case Platform

  • Go to the official website and click login. Enter the credentials given by your broker.
  • Once logged in, one can select from the various themes provided and choose their preferred one.
  • Once selected, the person will be able to view the stocks in their portfolio, the proportion and everything about the stocks. One can customise their portfolio according to their preferences.
  • Here, selecting the right advisor comes in handy. If you’re one who needs their broker to curate their portfolio, you would need a readymade portfolio. Otherwise, brokers also allow you to customise your portfolio according to what stocks you want to invest in.
  • Once your selection is finalised, you are directed towards your payment page. You are required to pay the minimum amount.
  • After payment is complete, the broker platform will place orders for all stocks.

How Is Small Case Different From Mutual Funds Or Direct Stocks

It can be called as a safety net for anyone who is new to shares and wants high returns and no risks involved. However, you need to have thorough knowledge about these stocks and need to know your stock market well.

  • Comparison to Mutual Funds

In the case of mutual funds, you do not need to have any knowledge. There are smooth transactions and lesser risks involved. However, you do not have any control while investing in mutual funds and mutual funds do not give back higher returns as compared to stocks.

  • Comparison to Direct Stocks

While investing in direct stocks, one can expect high returns and total control over your stocks. This is different because it is not as stagnant as mutual funds, and not too hard as direct stocks. Smallcase are a mixture of both giving lights to both stocks and mutual funds. Direct stocks are wider, in many senses but also include many risks.

Advantages of Smallcase

  • No Lock-in periods

Smallcase do not have any lock-in periods. You can invest according to your time, and buy and sell anytime you want. However, one must know when to buy and sell so one can pull out as much profit as possible. In the case of mutual funds, there are lock-in periods which become harder to operate. Rebalancing as mentioned earlier is also necessary. 

  • Less nominal charges

Smallcase have found 2% of nominal charges as compared to mutual funds. These norminal charges are to be provided to the adviser for preparing the portfolio. The charges that one has to pay are in case of premium small cases and also to the advisor.

  • Transparency and Control

One is given full control and transparency over Smallcase. Advisors are only appointed to draft a portfolio of interesting stocks that can be later analyzed by the user itself. Small cases have maintained transparency which is not provided in such a manner to the users in the case of mutual funds. 

  • Tax-free

No tax or charges are applied to Smallcase. While purchasing Smallcase there are no taxes or any normal charges as such required to be paid by the users. Small cases provide a variety of stocks that are free of cost. Users are given the choice to invest at their ease.

Disadvantages of Smallcase

With the pros, there are also some cons of investing in Smallcase.

  • Lacking Clarity

Despite being professionally curated, Smallcase can be pretty confusing to users. One still needs some knowledge on stocks to know which stocks to invest in and if the advisor is advising one correctly.

  • Volatile and Thematic 

Smallcase can be quite intimidating for anyone investing for the first time. However, it is not advisable for freshers. It is thematic and quite volatile which increases the risk to the user.

  • Increased Brokerage during Rebalancing 

There can be an increased expense because of rebalancing. As rebalancing is vital in Smallcase, it can increase your expense and if seen in a wider sense, may not be too suitable.

  • Not suitable for long-term investments 

For long-term investments, the small case might not be an ideal platform. It may increase your risks for its volatile nature and may result in loss more than profit.

Final Verdict

Sayin these, by now one can be completely confused. However, a small case if handled properly is a great opportunity to invest in. Giving light to the stock market helps one to understand its choices also. The only tip is to step steadily and not jump into high investments. One should go through the pros and cons of Smallcase and then invest accordingly.

FAQs

  • Does investing in Smallcase include risks?

Answer- It includes lesser risks than investing in direct stocks.

  • Did CRED purchase a small case?

Answer– CRED purchased a small case for 400 M in August 2022.

  •  Is small case SEBI registered?

Answer– Yes the small case is registered, managed and controlled by SEBI.

  • Is small case can be controlled by users?

Answer–  Smallcase can be semi-controlled by users.

  • Is Mutual Funds Better Investing than Small Case?

Answer– Small case is better because it not only gives you an insight into the stock market but also is safe.

  • Is tax to be paid in Smallcase?

Answer– No, tax is not required to be paid in Smallcase. Your only expenses to be inquired about are when you pay your brokerage charges.

  • Is SIP better or small case?

Answer– SIPS help you to maintain discipline while investing ins stocks. You would want it if you take hasty decisions.

Author: Ria Ganguly

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