What is small case investing? And its Uniqueness...

Small case is the new investment phenomena creating buzz. The curated portfolio of stocks or exchange traded funds (ETFs) has several merits 

a) ability to give superior returns

b) well research professionally managed portfolio built on the basis of a particular theme, idea or strategies

c) facilitate investment of smaller amount in just few clicks among others.

In today’s fast paced world when investors lack not just expertise but also time to track the market, small case can be big boon. Small case investing offers an additional opportunity to investors to build a diversified, low cost and long-term portfolio. Some of the top performers small case of recent times are as follows:

Uniqueness of small cases investing

One often wonders why invest in small cases when there are so many stocks and equity mutual funds to choose from. Reasons highlight below:

• Small case facilitates investment in multiple stocks or ETFs portfolio which is researched and categorize by the independent advisors, investment managers and small case investment team
• Diversification and professionally managed portfolio enhance the probability of higher returns of small case.
• Instead of directly in stocks which calls for expertise of stock picking, regular tracking and placing the order with the broker; with investment in small case investors can pick the portfolio which will have several stocks in it. These portfolios are easily available on the broker website.
• Wide range of options covering different themes, style of investing and sectors such as green energy, electric mobility, all weather investing, low volatility, naked trader digital inclusion among others.
• Full flexibility to add or remove stocks anytime, rebalance, track the portfolio and also sell the small cases any time there is need of money
• Unlike portfolio management services which calls for investment of big-ticket size in lakhs and crores, small case investing can be started with very small amount say Rs 1000 also.
• Regular investing in small case can be done through systematic investment route which can aid to safeguard invest against market volatility and over long term helps to harness power of compounding
• Investor need to pay flat fee of Rs 100 plus GST while investing in small case. There are no additional costs for further orders in the same small case. Brokerage and other statutory charges are levied on each transaction

Small case investing looks exciting from the above features but note higher returns comes from taking higher risk. Unlike mutual funds which have regulatory norms with respect to stock, market cap allocations and other risk management rules, these small cases don’t have any such restrictions. Seasoned savvy investors who are well verse with latest market trend, have prior experience in investing, higher risk appetite and want to try something innovative can consider investing in small case. New investors or those with moderate risk-taking ability should avoid investing in small case and if even they intent to do so it should only after careful evaluation of the underlying theme and portfolio attributes. Lastly, small case investing calls for long term disciplined investment and don’t let emotions drive the investment decisions.