Zerodha Smallcase, a one of its kind thematic investing for stock market in India. Or I should say \Invest in diversified ideas\ model. Do you know about Smallcases on Zerodha and its features? This was launched way back, but the idea of sharing minute details clicked us.
Simply put, Smallcase is a basket of stocks reflecting a specific idea. Call it \a smartly weighted portfolio of stocks\ that is based on an upcoming or trending market idea. e.g. rising rural demand, electric mobility or R & D spenders, etc.
In recent years the trading and investing structural changes, there are loads of innovative and advanced concepts have been added to the stock market of India and Zerodha Smallcase is one of them. It is an equity investment platform specifically designed for retail investors, which is made with the combination of two investment approaches, Thematic and Portfolio-based.
Thematic investing is investing in the changes that you see on a daily basis around you. However, it is thought of three things such as observation, experience and relatable changes surrounding us.
Suppose, the government declares something beneficial and afterwards you invest in the firm that could benefit from the changes. Concisely, thematic investing means that investing which is based on the comprehension of the future of the ideas.
For India, Smallcase is the first thematic platform. There are different thematic groups and baskets launched by Zerodha such as GST Basket’, ‘Monsoon Cheer’, ‘Rural Demand’, ‘Incredible India’ etc. and each basket comprises stocks in different proportions.
For example, the basket consists of four different sectors which are hotels, leisure facilities, healthcare facilities and airlines. One single click can let you buy shares of the mentioned sectors with Zerodha Smallcase.
Investing in a portfolio permits diversification benefit of a portfolio while permitting you to take exposure to market themes with improved and effective systematic investment. In a few clicks, it builds custom index values, managing and tracking multiple portfolios. Additionally, by picking stocks one can also create a smallcase by assigning weights to them.
Zerodha India’s largest brokerage firm offers an investment portfolio service named as Smallcase. To invest in Smallcase you need to have a Zerodha demat or trading account and for this, you have to follow the simple online registration process, within some time a representative will call you and update you with the entire procedure. Your account will be open within 24-36 hours.
Once your account gets open then you have to follow these steps for investing in Smallcase:
1.Visit on https://smallcase.zerodha.com/dashboard.
2.Select the Smallcase in which you would like to invest.
3.Click on the \Buy Smallcase\ option.
4.Enter the amount that you want to invest.
5.Click on the \Confirm Account\ option.
6.To buy, select the market price.
7.Click on the \Invest Now\ option.
Zerodha smallcase has their own powerful and user-friendly stock screener which helps users to screen the stocks easily. There are lots of helpful options of ratios, it's readymade and the smart filter will be also beneficial to find stocks.
Smallcase Zerodha charges are flat ₹ 100 or 2.5% whichever is lesser, of the investment amount for each smallcase. For example, if you wish to invest ₹ 30,000 in three different smallcase then you will be charged ₹ 300 in total. In the long run, if you are interested in increasing your investment in the smallcase which you have bought already, there is no extra fee you have to pay.
Following are the advantages provided for investors and beginners:
1.Investors can customize a smallcase by removing some of the existing stocks and adding new stocks as per their preferences.
2.Keeps minimal risk on your initial capital by diversifying your investment across industries and company stocks.
3.You don't need to do any technical and fundamental research on your own since that part is already taken by experts.
4.It is an easy to use and well-designed application, especially the 2.0 version.
Undoubtedly, smallcase could prove to be a great return giving tool if utilised properly. Usually, people do not have enough time to overview the working of different shares. They simply buy stocks without having any information in the market, thereby trusting that the stock market will consistently remain upside in the long term. In that scenario, smallcase provides an option to \rebalance, where the experts’ research team will take care of their investment.
Would you truly want to invest in those firms that go up in the future, but how can you assure that this specific firm and other segments will surely grow up?
Let us brief you, the Zerodha smallcase is the platform from where you get all the information in the form of the themes and portfolio that contain stocks of the firms that may go high in future. Hence, you don't have to spend endless hours picking the specific portfolio, finding the right stocks, tracking it and buying it daily.
To conclude, Zerodha Smallcase, is another unique way of investing your money through this leading stock broker in India.
Investing in a basket of stocks through Smallcase protects you against volatility of investing in a single stock. New and experienced investors can invest in this bucket of stocks and lessen the associated risk. What is your take on it? Do you favour this kind of investing or not?