Investment Tools

1. Investment Score is a tool based on the core-satellite approach that aggregates ratings on all your investments in stocks, ETFs and mutual funds.
2. This is a rule-driven tool (the logic of which is detailed in the subsequent paragraphs) applicable uniformly to all the users of the tool and does not take into account any individual risk-reward preferences, demography, financial goals or any other financial assets/liabilities that an individual may have. The tool is based on generally accepted market principles of diversification, asset allocation and systematic investing.The tool should not be construed as investment advice or research. You should seek professional advice when necessary, as the Company does not assume responsibility for any outcomes.
3. Core-satellite approach – It is a common and time-tested investment approach that consists of a core investment and other satellite investments that complement it. The objective of this approach is to build a solid investment foundation using asset allocation to protect your wealth in volatile times and enhance returns with risky satellite investments in the long term.
4. Classification of Core and Satellite Investments:
   1. Satellite investments are subdivided into slow-moving and fast-moving categories.
   2. The classification of investments into core-satellite categories is based on the volatility ratios and labels as described here. If the volatility label of the investment (smallcase/stock/mutual fund) is low, it is categorised as a core investment. If the volatility label is medium, it is categorised as slow-moving satellite investment and if the volatility label is High, it is categorised as fast-moving satellite investment.
   3. On the platform, core investments are also referred to as Stable investments, slow-moving satellite investments are also referred to as steady investments and fast-moving satellite investments are also referred to as high-growth investments.
5. Calculation of investment score: There are two broad components for arriving at the investment score:
   1. Deviation of the portfolio from the generally accepted ideal ranges for core, slow-moving and fast-moving investments:
      1. Based on the above logic of classification of investments into core, slow-moving and fast-moving categories, the weight of each category in a user’s portfolio is arrived at
      2. The above is then compared against the generally accepted ideal composition of each category for any portfolio. e.g., core investments should be between 30-50%. This is based on generally accepted principles of asset allocation
      3. Based on the above comparison which yields the deviation of a user’s portfolio from the ideal composition of a portfolio, a score is arrived at
   2. Measurement of how consistently the user is following a systematic investment approach and healthy investment habits
      1. Systematic investments reflect disciplined investing and protect against market volatility
      2. A score for this component is calculated based on the SIPs setup (as a % of portfolio value) as well as the % of SIPs executed on the more volatile satellite investments
      3. There are various recurring actions which might be required for a user to have a healthy portfolio. e.g., on smallcases - to stay true to the investment objective of a smallcase and hence, the investment objective that a user might have, it is important that a user performs timely rebalances (once issued by the manager)
      4. To give effect to the above scenarios, a logic has been defined where such pending actions from the user will carry a penalty and be deducted from the overall score
6. Insights based on the investment score:
   1. Investment Score insights will help a user achieve a generally accepted good asset allocation and adopt healthy habits like systematic investing and timely rebalance.
   2. The insights can broadly be divided into the following three categories

   S. No	Type	Description
   1	Portfolio Composition	User’s portfolio diversification (breakup between core and satellite assets) is compared with the diversification of users with more than 800 investment score. Based on this comparison, it highlights the users steps required to achieve the similar diversification as that of users with more than 800 investment score.
   2	Systematic Investment	It is checked if the user is following a systematic investment approach or not, for investing in the high-volatility assets in her portfolio. High volatility satellite assets where the user is not following systematic investment approaches are highlighted to the users for starting a SIP.
   3	Rebalance	It is checked if the user is timely rebalancing the updates provided by the smallcase manager, as timely updation of portfolios is important to keep the smallcase aligned with the strategy of the smallcase manager. smallcases where the user has not taken action on the updates provided by the smallcase manager are highlighted to the user for appropriate actions

1. Smart Alerts is a tool that allows you to keep track of the major market movements. There are two types of smart alerts - one based on market movements and the other based on suggestions from SEBI-registered intermediaries for the specific smallcases that they offer on the platform.
2. The market movement based alerts and indicators used in this tool along with their logic are reproduced below:
   1. Nifty Rolling Returns: It is used to generate an alert during a market downtrend. It is calculated by taking rolling monthly returns of Nifty 50. Whenever the rolling returns value drops below the defined threshold for a consistent time period, the alert gets triggered. Post which, it remains valid until the value of the rolling monthly return crosses 0%.
   2. Market Mood Index (MMI): It is used to generate an alert during a market downtrend. MMI takes into account various factors like Institutional investors’ data, volatility, gold price trend, etc. to gauge the current market sentiment and signal an investment opportunity when the market unexpectedly enters a state of heightened fear or bearish sentiment. MMI related disclosures can be found here. An alert is generated when the MMI value drops below the defined threshold for a consistent time period and remains valid till the value increases beyond a defined threshold.
   3. Ratio of Nifty 20-day SMA:50-day SMA: It is used to generate an alert during a market uptrend. It is calculated by taking the 20-day and 50-day simple moving average (SMA) of Nifty prices and then calculating the ratio ( Nifty 20D SMA/Nifty 50D SMA). The alert gets generated when the ratio is above the defined threshold for a consistent time period and remains valid till the ratio breaches a defined threshold on the downside.
3. Further details about the indicators and their logic are available here.

Find your smallcase is a tool to assist users to discover smallcases using a core-satellite approach. Tool first shows a low risk, asset allocation based smallcase. Once the user indicates that they want to see/explore more risky/more volatile smallcases, the tool keeps on surfacing smallcases with higher risk (more volatility). To understand the core-satellite investment approach, please read this article. This tool only considers the smallcases created by Windmill Capital Pvt Ltd - a SEBI registered research analyst having registration number as INH200007645, and a wholly owned subsidiary of Smallcase Technologies Pvt Ltd.

1. The lists and collections of stocks, mutual funds, or smallcases under various groups have been made as and by way of available sources of information with Smallcase Technologies Private Limited (STPL). The rationale for such lists and/or collections under each particular group is mentioned in that section and is self- explanatory.
2. All the lists and collections are either made based on objective information, public knowledge or broad sectoral trends. For example - ETF smallcases collection will list a few of the smallcases from the platform that only consist of ETFs as constituents, Ideal for New investors smallcases collection lists smallcases that are focused on asset allocation and have low volatility as such portfolios are generally considered less risky and ideal for first-time investors, etc.

1. All the tools or activities mentioned in the above points A, B, C, D & E should not be construed as investment advice or research or as a solicitation to invest in such stocks, mutual funds or smallcases and the investor is advised to consult his / her advisor prior to arriving at any investment decision.
2. While every effort has been made to take due care in building and calculating the above tools to avoid errors or omissions, all the tools are published with a condition and understanding that STPL shall not be responsible for any damages, compensation or loss or action taken or abstained to be taken on the basis this information.
3. Investing in Stocks, ETFs (Exchange Traded Funds) and Mutual Funds are subject to market risk. Please read all the related documents carefully before investing. Past performance and representations are not indicative of future results and do not guarantee any future performance.