What is smallcase?

A smallcase is essentially a curated portfolio of stocks or Exchange Traded Funds (ETFs) that reflects a specific investment strategy, theme, or objective.

These portfolios are built using a rule-based approach, where the selection of stocks/ETFs is based on specific criteria that align with the underlying strategy.

Smallcases are created and managed by SEBI-registered investment professionals (smallcase managers) who have years of experience in the stock market.

So basically, instead of buying individual stocks based on hunches, you invest in a diversified portfolio built on sound research and data.

Why invest in smallcase?

Here are the advantages of investing in the high return smallcase portfolios:

Diversification made easy

Smallcases inherently provide diversification by investing in a basket of stocks focused on a specific theme or strategy. This helps to reduce risk compared to investing in just a few individual stocks.

Thematic and strategy-driven investment

It's often easier to understand and believe in a broader trend, like the growth of electric vehicles, rather than picking the one or two companies that will definitely succeed in that space. Smallcase allows you to invest in these overarching ideas.

Expertly curated portfolios

You benefit from the research and analysis of SEBI-registered financial experts who create and manage these portfolios. This eliminates the need for beginners to have extensive market knowledge from day one.

Periodic rebalancing & tracking

Smallcase managers offer periodic rebalance updates. This is to ensure the portfolio remains aligned with its investment objective, saving you the effort of constantly monitoring and adjusting your holdings.

Full transparency and control over your investment

You have complete transparency over the stocks and ETFs within your chosen smallcase. The securities are credited directly to your broker's demat account, giving you full control over your investments. There are generally no lock-in periods, allowing you to exit your investments whenever needed.

How to invest in smallcase?

Here's what you need to do to get started with smallcase investment :

1. Log in or create a broker account and connect to Smallcase

You would first need to log in to the smallcase platform (website or app) using your phone number. If you don't have an account, you need to create one. Subsequently, you need to connect your existing brokerage account to your smallcase account. You can also create a new brokerage account on a preferred platform if required.

2. Choose your smallcases portfolios.

Browse through the various smallcases available on the platform. You can filter by theme, risk level, or expected returns to find one that matches your investment goals. Each smallcase provides detailed information about its strategy, historical performance, and constituent stocks.

You can choose the best smallcase to invest in, such as PINC Momentum Fundamental, which focuses on identifying and purchasing stocks with strong earnings potential over the next 4-8 quarters, emphasising reasonable valuations and potential valuation re-rating.

3. Make your investment

Once you've selected a smallcase, you can invest in it through either:

• Lump-sum investment: Invest a fixed amount at once
• SIP (Systematic Investment Plan): Set up regular, periodic investments

The platform will calculate how many shares of each constituent stock to buy based on your investment amount and the recommended weightage within the smallcase. The constituents of the smallcase will be bought and credited directly to your demat account.

4. Track and manage your investment

After investing, you can track your smallcase's performance, dividends, and overall portfolio evaluation through the investments section of the platform. You'll see details of every stock so you know exactly where your money is at all times.

You also have the freedom to manage your investments by:

• Adding, editing, or removing stocks from your smallcase
• Reviewing and implementing rebalance updates suggested by managers
• Editing your SIP details if you chose that investment method

Conclusion

It is clear that a smallcase is a pre-designed portfolio or a basket of stocks or Exchange Traded Funds (ETFs) that represent a specific investment idea, theme, or strategy.

With benefits like diversification, ease of investment, and the expertise of SEBI-registered professionals, smallcases simplifies the investment process by providing ready-made baskets of stocks or ETFs.

By understanding the right investment strategy and a reputable wealth advisory brand, you can start investing efficiently and confidently.

We at PINC Wealth, a SEBI-registered wealth management brand with a legacy of over four decades, offer research-backed and expert-curated smallcase portfolios. Start your investment journey today!