Features and Benefits of a Smallcase

 

Investors seeking returns that outperform the index must navigate uncharted waters, conduct in-depth fundamental analysis, evaluate the role and competence of the management, envision the potential of the industry, and finally select a company. For a working professional or entrepreneur, that is too much work. Well, Smallcase has made the entire procedure simpler.

Investing in what you eat has been one of the long-prescribed and advocated investing strategies. Buy Britannia shares if you enjoy their biscuits. Purchase Nestlé stock if you purchase Maggi (a Nestlé product).

These specialised businesses have historically provided investors with large profits. These specialised businesses, meanwhile, can also be inconsistent and turbulent. Investors seeking returns that outperform the index must explore uncharted waters, do in-depth fundamental research, and evaluate the management's position and capabilities, and more. When testing by the Food and Drug Administration of UP, India, in 2015 found that Maggi had more lead than was allowed, Nestlé's stock price fell by 9%. Individual equities, including those of specialised businesses, are thus not risk-free.

For investors looking for index beating returns, they have to charter unmarked territories, conduct extensive fundamental research, analyse the role and capability of the management, picture the potential of the industry and then choose a stock. That is too much work for a working professional or entrepreneur. Well, smallcase has simplified the complete process:

There are four types of smallcases:

(i) Asset Allocation Portfolio – A combination of large-cap equities, fixed income instruments, and gold.

(ii) Smart Beta portfolio – It focuses solely on large-cap companies.

(iii) Strategic Smallcase – These are established investment strategies biased towards mid and small-cap stocks.

(iv) Thematic Smallcase – These are theme-based smallcases, e.g., Electric Mobility

Curious to know more about the different types? Read our article “Types of Smallcases” on the TejiMandi Smallcase Blog.