8 Things to Check Before Investing in a smallcase: Your Essential Guide

Navigating your way through smallcase selection involves several key steps to ensure you find the right fit for your investment goals. Whether you’re a seasoned investor or just starting out, understanding these aspects can streamline your decision-making process.

Search and Filter Options

You can easily find smallcases by searching for their name, manager, or investment strategy. For instance, you might look up strategies like growth, value, or dividend. Use filters to narrow down choices based on volatility, minimum investment amount, and specific investment strategies.

1. Sorting Options

Sort smallcases based on popularity, minimum investment amount, recent rebalancing, and returns. The popularity filter prioritizes smallcases based on recent investment activity and user engagement, while the minimum investment amount shows the least required to start investing. Recent rebalancing dates highlight how up-to-date the smallcase is. Returns can be viewed over 1 month, 6 months, 1 year, 3 years, or 5 years, reflecting performance across different market cycles.

2. Understanding Investment Strategy

Each smallcase comes with a clear rationale explaining its investment strategy.

3. Volatility and Risk

Volatility measures how much a smallcase’s value fluctuates over time. It’s crucial to match volatility levels with your risk tolerance and investment horizon. smallcases are categorized into High, Medium, and Low volatility buckets to guide your decision-making.

4. Comparing Returns

The platform offers a way to sort the portfolios via returns. This helps you understand how the smallcase has performed across various economic conditions. By comparing smallcases that have been through multiple market cycles, you can get a more comprehensive view of their performance on our platform. When evaluating the performance of a smallcase, it’s important to consider different time periods.

5. Minimum Investment Amount

Each smallcase has a specified minimum investment amount, determined by the prices of stocks or ETFs within it. This amount represents the lowest sum required to invest in that particular smallcase.

smallcase Managers

smallcases are managed by experienced SEBI-registered professionals such as Investment Advisers, Research Analysts, and Stock Brokers, known as smallcase Managers. They design portfolios based on diverse strategies like growth, value, dividends, asset allocation, thematic, quant, momentum, and sector-specific focuses. Understand the manager’s approach and expertise by exploring their profile and investment philosophies.

Free vs. Fee-Based smallcases

On the smallcase platform, you’ll find both free and fee-based options. Fee-based smallcases offer additional benefits, such as access to premium research and expert portfolio management. Fees vary depending on the manager.

Bottom Line

When selecting a smallcase, consider both qualitative and quantitative factors. Evaluate the investment strategy, manager expertise, historical returns, volatility, and fee structure to make an informed decision that aligns with your financial goals and risk appetite. By understanding these aspects, you can navigate the smallcase ecosystem confidently and effectively.

Disclaimer 

The information provided in this article is for educational purposes only and should not be construed as financial advice. 

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

Investing in the stock market involves risks, and it is important to do your own research or consult with a qualified financial advisor before making any investment decisions. The tools and features described herein are designed to assist you in filtering and evaluating smallcases, but they do not guarantee any investment performance. Past performance of smallcases or any stocks is not indicative of future results. The final investment decision should be based on your own risk tolerance, financial situation, and investment objectives. 

Smallcase Technologies Private Limited shall not be responsible for any losses that may occur as a result of using the tools and features.

Also, see our disclosures – https://www.smallcase.com/meta/disclosures