Which Smallcase Is Best for the Long Term

 

The stock market has gained a lot of investor interest after the COVID-19 pandemic. It is one of the best alternative sources of income. A stock market investment, however, is no child’s play. In most cases, investors lack the knowledge and research required for this. Furthermore, tailoring a portfolio to specific needs requires even more patience. This led to the introduction of an investment tool: a smallcase. Even though investors can opt for a small or long-term Smallcase as per their needs, the smallcase is more suitable as a long-term investment. Let’s first understand what we mean by a smallcase.

What is a Smallcase?

A smallcase is an investment tool containing several portfolios based on different themes or strategies that investors can choose from depending on their needs. Themes can include real estate, health, technology, and more. A vital element of these portfolios is that they are made using algorithms and weights by SEBI Licensed Experts’ Advice. In other words, investors don’t need to research individual stocks from multiple stocks and yet get a customised portfolio prepared by experts.

Some pros of investing in the Smallcase are:

·         Ownership of the individual stocks in the investor’s Demat account

·         The advantage of a ready-made portfolio without the hassle of researching and analysing different stocks.

·         There is no restriction on selling. Smallcase, with its rebalancing feature, assists the investors in selling at the right time. Unlike mutual funds, there is no automatic reinvesting.

·         There is no cost of expense ratios like in a mutual fund.

·         In addition, smallcases are generally built as long-term investments. So, it helps to cover all the subscription costs and other expenses an investor might incur before investing in smallcase.

·         The smallcase works on the concept of value investing. Therefore, only those stocks that add value to the portfolio will be included, and the rest will be discarded. Investing in this way will allow investors to outperform the market over time.

·         Finally, investors can create a Diversified Portfolio at a low cost to control themselves and maintain over the long term. This helps in growing their wealth steadily.

Which Smallcase Is Suitable for the Long Term?

Teji Mandi Flagship Smallcase

·         The Smallcase offers its investors a portfolio combining 15-20 short-term and long-term stocks, all from Nifty500. With the addition of short-term stocks, investors benefit from liquidity through this smallcase.

·         Its 1-year CAGR stands at 75.72%.

·         In case of negative news in a sector or an unfavourable situation, the smallcase will immediately exit those stocks. This smallcase aims to build a stable and liquid portfolio which are the critical factors for a long-term investment.