Is it good to invest in Smallcase?
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- Updated On:06-Apr-2022
- Replies:1
Short Answer
Small case is an intermediatory platform that helps investors looking to make investments in a basket of stocks ranging through different portfolios quite simple and straightforward. You can choose from various stock portfolios and make necessary SIP's or one-time investments to hold them or sell them based on your preference.
Detailed Answer
Smallcase is a company based out of Bangalore that lets investors choose from a basket of stocks based on different sectors and parameters. The company doesn't hold any shares, nor does it have the authority to execute a transaction. Instead, it's a company that mediates between the investors and the stockbroker in placing orders based on the basket of stocks chosen by the investor.
To elaborate more on this, smallcase only offers a brief overview of the portfolio. Experts and other veteran investors overlook these portfolios to provide the best possible return to investors.
For the services that smallcase offers, you have to pay a small fee of 100 rupees which might change based on the plan. You can invest monthly or have a one-time investment to the platform to purchase the basket stocks of your choosing.
Now you might be wondering as to what might be the difference between smallcase and mutual funds. Smallcase is an intermediate platform that only offers the investor the option to buy a basket of hand-picked stocks by investors, which are rotated and reviewed at a periodic time.
They act as a middle ground between the brokers and investors to invest in the stock market. Looking over mutual funds, then you are directly investing in the stock market through a mutual fund.
In mutual funds, you cannot have a diverse selection of stocks. But in smallcase, you can have that and choose the stock of your liking and invest accordingly.
However, smallcase does have its share of problems. Starting with its returns, there have been many reviews online where even after long-term investments, there have been issues of providing lesser returns despite having a higher CAGR shown. In addition, there have been reports of the platform discontinuing the smallcase orders to cover up the platform's inability to offer those returns.
Invest in smallcase
Smallcase is a good platform if you have no knowledge whatsoever but want a direct investment without paying a higher price. However, you could choose mutual funds or even invest directly through a broker into the stock market as it would assure that you have made an investment based on your knowledge and experience.
A modern investment product, smallcase helps you create a diversified portfolio at minimal cost. But, you should do thorough research before investing your money in any asset class. What are your thoughts on smallcase investment? Feel free to discuss.
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Discussion (0)
Discount brokers have gained a lot of popularity in the past couple of years. Zerodha is currently India's largest and most trusted discount broker which is also the best option for beginners. It has all the necessary qualities required for a good broker like low commissions, low-maintenance charges, high-quality trading terminal, etc.
Zerodha is the largest stockbroker in India which holds more than 19% of the total market share. It is good for beginners as the account and brokerage charges are low. It offers a great trading platform and has a simple-to-use UI. All these features make it a suitable choice for beginners as well as advanced traders and investors.
Zerodha and Groww are both good players in the Discount Broking space but both have some differences. Zerodha has the largest client base and is the most trusted Broker in India whereas Groww is one of the fastest-growing Discount brokers. Both offer different features to their clients which is discussed in detail below.
Stock Market is always at risk and involves around a lot of aspects. A daily news viewer also needs time to understand what is exactly going on. To actually dive into the world of stocks, it is important to read about the companies and their strategies and that is what stockbrokers do. They understand the company, do their research and expect the price of stocks by studying the company's ways of dealing with stock market strategies and also about the market forces. Let us now go through the actual topic and understand things better.
The Electric Mobility Smallcase is a basket of stocks that are selected by Smallcase based on the goal of the Government to achieve the sale of 60-70 Lakh hybrid & electric vehicles from the year 2020. The pros & cons are evaluated of the sector and the features of this smallcase are discussed below.
Yes, NRI can invest in Smallcase in Zerodha. They can invest using any NRI demat account they have with Zerodha, whether it is NRE PIS or NRO non-PIS.
Yes , NRI can invest in Mutual Funds in Zerodha by opening a non-PIS account. However, there are restrictions for NRI investors with PIS accounts, as well as investors based in the US and Canada; they are not permitted to invest in mutual funds in Zerodha.
The short answer is yes you can convert CNC (CASH AND CARRY) position to MIS (MARGIN INTRADAY SQUARE OFF) in zerodha. This option is presented inside the positions tab in Zerodha is very easily accessible.
Investing in stocks can make you a millionaire, provided you follow the necessary steps. These include investing regularly, picking good quality stocks, and most importantly playing the long-term game rather than trying to make a million in months or a couple of years.
Zerodha as well as Groww, both allow investors to invest in Mutual funds. Groww does not charge any Account opening fees or Annual maintenance Charges but Zerodha charges Rs 200 for Account opening and Rs 300 for AMC. This makes Groww a cheaper and better option when it comes to investing in mutual funds.