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.
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.
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.