Have you come across Smallcase, the Indian fintech company that offers cutting-edge investment options? Smallcase offers a platform that allows you to invest in personalized portfolios, referred to as "smallcases," which are baskets of stocks and ETFs. These portfolios are tailored to meet your specific investment strategies, market trends, and investment goals, providing a unique and customized investment experience.
If you're considering investing in Smallcase but want to gain a deeper understanding before making a commitment, you've come to the right place.
In this comprehensive review, we will dive into the key features and benefits of Smallcase. We will also analyze its performance, user experience, and other important metrics to help you make an informed decision about whether this platform is right for you. Whether you're a beginner or an experienced investor, this review will provide a thorough understanding of what Smallcase has to offer and how it can help you achieve your investment goals.
Before jumping into the review, if you're unfamiliar with the concept of Robo-advisors or don't know yet how automatically managed portfolios work, we recommend that you read our "Guide to Robo-Advisors." This will give you a better understanding of the benefits and features of this investment innovation.
Overview
Smallcase is an investment platform that offers a unique and convenient way to invest in the Indian equity market. The company, founded in July 2015 by three IIT Kharagpur graduates, is headquartered in Bangalore and comprises a team of finance experts, engineers, and designers.
As its name suggests, Smallcase operates based on the concept of "Smallcases." These are portfolios of stocks and ETFs that have been pre-selected and curated to align with specific investment themes or strategies. The portfolios are built by financial professionals who have in-depth knowledge of the stock market.
Each smallcase is designed to meet specific investment goals and offers exposure to various industries and market segments, emphasising diversification, simplicity and convenience.
Pros & Cons
Pros
Convenient portfolio management
Ability to diversify holdings
Access to expert investment themes
Automated investment and rebalancing features
Easy-to-use web and mobile application
Low minimum balance requirement (varies by associated broker)
Cons
Limited investment options
Lack of personalized investment advice
Requires an account at a broker (acceptable by Smallcase)
Not available for international investors (only Indian investors)
No live chat support
Platform
Smallcase has a well-designed web platform and a user-friendly mobile application (available on Android and iOS) for users to manage their investments.
Smallcase Web platform
Smallcase has an intuitive web platform that makes it simple for users to navigate and invest in various portfolios. Upon logging into your account, all relevant information is displayed on a single page for convenient access. The platform provides detailed information about each smallcase, including its objectives, investment strategy, and the stocks that it holds. The platform also provides a backtest of each smallcase, which allows users to see how it would have performed in the past. Additionally, the platform has a portfolio tracker, which helps users keep track of their investments and returns.
Smallcase website dashboard
If you are interested in discovering and exploring the different smallcases available, the platform offers a "Discover smallcases" section. By clicking on this tab in the upper right corner of the screen, a list of all smallcases will be presented, and you can filter by subscription type, investment amount, launch date, and investment strategy. Additionally, the level of volatility is displayed, as well as the Compounded Annual Growth Rate (CAGR) performance, giving you the ability to make informed investment decisions based on your own goals and preferences.
Discover smallcases tab
Smallcase mobile application
The Smallcase app, which is available on both iOS and Android, offers an effortless way to manage your investments while on-the-go. The app is designed with a clean and straightforward interface, making it easy to navigate. It provides real-time updates on investments and portfolio value, as well as detailed information about each smallcase.
Smallcase Mobile App
The app has five tabs at the bottom:
Home: This is the dashboard that displays an overview of all the smallcases, those that are trending or popular among investors or ideal for getting started. It provides real-time updates and helps you quickly assess your portfolio's performance.
Search: This tab allows you to search and explore the available smallcases. Like the web platform, the list can be filtered based on investment amount, subscription type, launch date, investment strategy, and volatility level.
Create: This tab allows you to create your own smallcase or customize an existing one. You can also save your custom smallcase and track it over time.
Watchlist: This tab allows you to keep an eye on specific smallcases that you are interested in, without having to invest in them. It's a way to track and monitor your preferred smallcases and stay informed about any changes.
Investments: This tab provides a clear view of your portfolio by displaying all of your current investments, including the smallcase name, investment amount, and current value.
The Smallcase mobile app has received mixed reviews from users. On the positive side, users appreciate the app's user-friendly and intuitive design, making it easy for beginners to get started with investing and navigate the app. However, some users have encountered technical issues with the app, such as difficulties with the One-Time Password (OTP) login process, crashes, and the app redirecting to the browser. These issues have caused frustration for some users and made it difficult for them to complete transactions or access the app's features.
Our experience showed the OTP issue was valid, and we needed 2 OTPs to login. Although this issue does not always occur. Despite these challenges, we believe the app has a lot of potential and can be improved in terms of technical stability and the inclusion of additional features such as tutorial videos, a forum under each basket to discuss its performance and more.
Overall, both the Smallcase web platform and mobile application are well-designed and provide a convenient and user-friendly way for users to invest and manage their portfolios.
Now, let's take a closer look at some of the smallcases, their returns, and the strategies behind them.
Product Offer, Portfolios, and Investment Strategy
As mentioned earlier, smallcases are innovative investment products that make it easier to build a low-cost, long-term, and diversified portfolio. Smallcases are created and managed by SEBI-registered professionals who are knowledgeable and experienced in the stock market. For example, Windmill Capital is a team of SEBI-registered research analysts who specialize in building stock and ETF-based portfolios for retail investors. The name of the creator can be found on the smallcase profile page.
You can simply log in to the platform using your broker credentials and start investing immediately. The investment process is straightforward. You can invest in a smallcase using funds from your broker account and start either a Systematic Investment Plan (SIP) or make a lump-sum investment.
The Smallcase platform classifies the smallcases into collections to cater to different investment goals and preferences. We’ll name some of those popular collections:
Trending in 2023: This collection showcases smallcases that are currently trending among new investors, with a focus on the latest investment opportunities and popular investment strategies.
Popular under 5k: This collection offers portfolios that are affordable and in demand, for those who are looking for investment options with a budget of INR 5,000 or less.
Dividend Income: This collection offers the opportunity to invest in dividend-paying companies.
Retirement Planning: This collection provides investment options ideal for building wealth for the future, including education and retirement.
Each collection can be easily accessed from the Discover section and filtered based on specific attributes.
Smallcase collections
For instance, let’s pick the “Dividend Aristocrats” smallcase and analyze it.
This smallcase, managed by Windmill Capital, invests in 12 dividend aristocrat companies with a track record of consistently increasing their dividends over the last 10 years. It is managed by Windmill Capital and consists of 12 stocks from various sectors, including FMCG, IT services, home financing, and more. The minimum investment of this smallcase is ₹ 57,934.
Dividend Aristocrats Smallcase Details
It has a market cap distribution of 66.67% large cap, 16.67% mid-cap, and 16.67% small cap companies spanning various industries, including paints, building products, home financing, and more. The stocks are rebalanced annually, with the most recent rebalance on June 16, 2022 and the next rebalance scheduled for June 16, 2023.
The past performance of this smallcase reveals several rebalancing events since it went live in April 2016. In September 2021, the smallcase reported a return of 69.28% with the addition of 1 constituent and removal of 3, while in June 2022, it reported a return of -5.77% with the addition of 3 constituents. The 7-year compounded annual growth rate (CAGR) of the smallcase since April 4, 2016 is 21.35%.
You can access all the information available for other smallcases, including their fact sheets, which provide comprehensive details similar to the fact sheet of the Dividend Aristocrats smallcase.
Performance
When it comes to the performance of Smallcase, it is essential to understand the platform's transparency and track record. Smallcase provides clear information on the performance of its smallcases since their inception, including the number of rebalancings that have taken place. This information can be accessed from the stocks and weights section and provides users with the full history of each smallcase. Additionally, Smallcase is transparent in its reporting, providing factsheets and portfolio methodologies for full disclosure.
Performance off Dividend Aristocrats smallcase
However, there are also reports of negative experiences with the platform’s reporting, with claims of manipulated and false returns being advertised.
One particular instance of concern mentioned by a user was the removal of the stock Vakrangee from the smallcases, which prevented the platform from showing loss numbers, even though users were unable to sell their holdings as the stock was in a lower circuit (the limit below which a stock price cannot trade on a particular trading day).
Vakrangee price – Source: tickertape.in
Moreover, other users suggest that there are other ways the platform inflates its numbers, resulting in true returns being far lower than the returns advertised due to additional costs associated with rebalancing, such as brokerage charges and taxes. These costs can have a significant impact on overall returns and should be carefully considered before investing.
Another major incident is that there have also been reports of some smallcases not being reported anymore due to poor performance, while investors still hold the portfolio holdings.
In our opinion, it's important to note that market factors play a significant role in the performance of investments, and some issues may not necessarily be related to the Smallcase platform itself. As an investor, you can choose to invest in less risky smallcases or remove stocks from your holdings if you are concerned about their performance.
Ultimately, it is up to you to make informed investment decisions based on your own risk tolerance and financial goals. Hence, while the advertised returns of the portfolios may seem impressive, we recommend that you thoroughly understand the costs associated with rebalancing and perform due diligence before investing.
Smallcase Features
The Smallcase platform offers a range of features that give you the power to manage your investments with ease and flexibility. These features include:
Investment Control: You have full control over your investments, allowing you to enter or exit smallcases, invest more, or sell individual stocks as needed. The "Manage" option allows you to buy and sell individual stocks or shares within the smallcase.
SIP (Systematic Investment Plan): You can start a monthly or automatic investment plan with the flexibility to adjust the frequency and edit or end the plan at any time.
Investment Notifications: You will receive notifications before SIP due dates, ensuring you never miss an instalment. Additionally, you can subscribe to WhatsApp updates for real-time notifications.
Rebalance Notifications: You will be informed of rebalances through email, app notifications, and by subscribing to WhatsApp updates. You can apply, skip, or make changes to rebalances before confirming and placing orders.
Create Your Own Smallcase: You can create your own personalized portfolio by selecting up to 50 stocks/ETFs listed on NSE, organizing them into segments, and assigning weighting schemes. You can also compare past performance and invest in or save your smallcase for later.
Fees
Similar to most portfolio management platforms, Smallcase charges a fee for its services. You may encounter two types of fees: transaction fees and subscription fees.
Transaction fees
Starting from November 21st, 2022, a transaction fee of ₹100 (or 1.5% of the investment amount, whichever is lower) will be charged for lump sum investments in smallcases and a charge of ₹10 (or 1.5% of the amount transacted, whichever is lower) for SIPs. There will be no fees for rebalancing, partial/full exit, or placing manage orders. Note that other statutory charges, such as GST, STT, Demat, brokerage, and taxes, may still apply. The transaction fees are charged by the broker and can be viewed in the broker ledger and equity contract note. To view the details of these fees, you can check the fee page on your smallcase broker platform.
This means that if you invest ₹1,00,000 in a smallcase, you will pay ₹100+GST (as 1.5% of ₹1,00,000 is ₹1,500 which is greater than ₹100). However, if you invest ₹1,000, you will pay ₹15 (as 1.5% of ₹1,000 is ₹15 which is less than ₹100).
Subscription Fees
Smallcases can be free or require a subscription fee. For paid smallcases, the fee provides access to the underlying stocks and benefits such as rebalance updates, portfolio tracking, SIP, and more. The fee can be either a percentage of the investment amount (AUM-based) or a one-time flat fee. Before a subscription expires, it can be renewed, or after it has expired, it can be reactivated. If a subscriber does not renew within the 7-day grace period, the subscription will be cancelled, and the subscriber can still invest in the smallcase, but will not receive rebalance updates.
Smallcases Fees & Minimum Investment Amount
For example, the "Dividend Aristocrats'' smallcase is free and provides access to underlying stocks and all smallcase benefits without a subscription fee. On the other hand, the "High Dividend Yield and Capital Appreciation," smallcase requires a subscription fee of ₹4720 for 6 months. This fee gives access to the underlying stocks, rebalance updates, and all other features and benefits of smallcase. The fee for each smallcase may vary, so it is important to review fees and benefits before subscribing.
In summary, for individuals seeking automated portfolio management, we think that the free smallcases are cost-effective, as you'll only incur the capped transaction fee. However, it's crucial to examine the fee details on the broker platform before making any investment decisions to fully understand all costs involved and make informed choices.
Safety and Reliability
Smallcase was founded in 2015 under the name “Smallcase Technologies Pvt Ltd'' with a registered office in Bangalore, India. It only allows SEBI-registered Research Analysts, Investment Advisors, Portfolio Managers, or Brokerage Houses to create and manage smallcases as per SEBI guidelines. It also has a wholly owned subsidiary company “Windmill Capital Private Limited'', which is registered with SEBI as a Research Analyst (SEBI Reg no - INH200007645) and is engaged in research activities and creates some of the smallcases available on the platform and which are free.
The platform prioritizes the safety and reliability of its users' funds where funds invested through smallcase are held in a demat account with a registered broker and all transactions are executed through a secure and encrypted connection. Additionally, smallcase has implemented measures to prevent fraud and unauthorized access to user accounts.
These are the brokers acceptable by Smallcase:
Zerodha
Upstox
Trustline
Kotaksec
IIFL
Nuvama
Angelbroking
Aliceblue
5Paisa
HDFC Securities
Axisdirect
MOSL
Groww
ICICI direct
Fundzbazar
Dhan
Customer Support
Smallcase offers a comprehensive customer support system for its users, with multiple channels of communication available including an FAQ section, email, and phone. Although a live chat service is not offered, users have generally praised the support team for their helpful and friendly approach.
In addition to its customer support, the Smallcase blog “Smalltalk” is a comprehensive resource for its users and investors, offering a range of sections that cater to various investment needs and interests. The four main sections of the blog include:
Investing Insights: This section provides in-depth information and educational articles on various aspects of investing
Postweek Reports: The weekly round-up of market news which is a quick and convenient summary of the most important financial events of the week.
Smallcase Rationales: This section offers a deep dive into the Smallcases, explaining the portfolio construction and investment strategies behind the platform's offerings.
Inside Smallcase: This section provides updates, guides, and stories from the Smallcase team.
Overall, the Smallcase customer support system is considered to be efficient and effective, their blog is also a good resource for new investors or busy investors who want to have a weekly wrap up making it a reliable resource for users seeking assistance, still there are several ways of improvement.
Account Opening
The account opening process on Smallcase is user-friendly and straightforward. You can start by registering on the platform's website or mobile application, providing basic information such as name, email, and phone number. After verifying the phone number through an OTP, you can access information about various smallcases available on the platform. However, to invest in a smallcase, you need to link your brokerage account to Smallcase by following these steps:
Log in to Smallcase on the website or app
Go to the desired smallcase and click on "Invest Now" or from the “Account” menu click on “Connect Broker”
Select the broker from the list of supported brokers
Follow the instructions provided by the broker to link the account
Invest in the desired smallcase once the brokerage account is linked.
It's important to thoroughly review the terms and conditions of the brokerage before linking the account to Smallcase.
Login with Broker window
The bottom line
In conclusion, Smallcase is an Indian investment platform that offers access to professionally managed portfolios of stocks and ETFs called "Smallcases." It is a user-friendly and convenient platform that provides investors with access to expert investment themes and the ability to easily diversify their holdings. The platform offers several features, including investment control, SIP, investment notifications, rebalancing notifications, and the ability to create custom portfolios. Smallcase also has a well-designed web and mobile application for easy portfolio management.
Based on our analysis of Smallcase, we believe that it presents an appealing option for Indian investors searching for a diversified portfolio that can be automatically managed while still allowing them to make modifications as they see fit. However, it is crucial to keep in mind the potential downsides of the platform, including fees like transaction fees and other charges that vary based on the broker and the type of investment. Other drawbacks include a limited range of investment options, the absence of personalized investment advice, and availability solely to Indian residents.
In the end, we recommend that you thoroughly understand the costs and to consult your financial advisor before making any investment decisions, as investments are subject to market risks.
We hope this review has been helpful in answering your questions about Smallcase. If you have any further questions or feedback, please feel free to leave a comment or reach out to us directly.
Have you come across Smallcase, the Indian fintech company that offers cutting-edge investment options? Smallcase offers a platform that allows you to invest in personalized portfolios, referred to as "smallcases," which are baskets of stocks and ETFs. These portfolios are tailored to meet your specific investment strategies, market trends, and investment goals, providing a unique and customized investment experience.
If you're considering investing in Smallcase but want to gain a deeper understanding before making a commitment, you've come to the right place.
In this comprehensive review, we will dive into the key features and benefits of Smallcase. We will also analyze its performance, user experience, and other important metrics to help you make an informed decision about whether this platform is right for you. Whether you're a beginner or an experienced investor, this review will provide a thorough understanding of what Smallcase has to offer and how it can help you achieve your investment goals.
Before jumping into the review, if you're unfamiliar with the concept of Robo-advisors or don't know yet how automatically managed portfolios work, we recommend that you read our "Guide to Robo-Advisors." This will give you a better understanding of the benefits and features of this investment innovation.
That's Smallcase in a nutshell. Keep reading to know more about Smallcase analysis.
Smallcase Review - Smallcase Overview
Smallcase Overview
Smallcase is an investment platform that offers a unique and convenient way to invest in the Indian equity market. The company, founded in July 2015 by three IIT Kharagpur graduates, is headquartered in Bangalore and comprises a team of finance experts, engineers, and designers.
As its name suggests, Smallcase operates based on the concept of "Smallcases." These are portfolios of stocks and ETFs that have been pre-selected and curated to align with specific investment themes or strategies. The portfolios are built by financial professionals who have in-depth knowledge of the stock market.
Each smallcase is designed to meet specific investment goals and offers exposure to various industries and market segments, emphasising diversification, simplicity and convenience.
Smallcase Review - Smallcase Pros and Cons
Smallcase Pros and Cons
Pros
Convenient portfolio management
Ability to diversify holdings
Access to expert investment themes
Automated investment and rebalancing features
Easy-to-use web and mobile application
Low minimum balance requirement (varies by associated broker)
Cons
Limited investment options
Lack of personalized investment advice
Requires an account at a broker (acceptable by Smallcase)
Not available for international investors (only Indian investors)
No live chat support
Smallcase Review - Smallcase Platforms
Smallcase Platforms
Smallcase has a well-designed web platform and a user-friendly mobile application (available on Android and iOS) for users to manage their investments.
Smallcase Web platform
Smallcase has an intuitive web platform that makes it simple for users to navigate and invest in various portfolios. Upon logging into your account, all relevant information is displayed on a single page for convenient access. The platform provides detailed information about each smallcase, including its objectives, investment strategy, and the stocks that it holds. The platform also provides a backtest of each smallcase, which allows users to see how it would have performed in the past. Additionally, the platform has a portfolio tracker, which helps users keep track of their investments and returns.
Smallcase website dashboard
If you are interested in discovering and exploring the different smallcases available, the platform offers a "Discover smallcases" section. By clicking on this tab in the upper right corner of the screen, a list of all smallcases will be presented, and you can filter by subscription type, investment amount, launch date, and investment strategy. Additionally, the level of volatility is displayed, as well as the Compounded Annual Growth Rate (CAGR) performance, giving you the ability to make informed investment decisions based on your own goals and preferences.
Discover smallcases tab
Smallcase mobile application
The Smallcase app, which is available on both iOS and Android, offers an effortless way to manage your investments while on-the-go. The app is designed with a clean and straightforward interface, making it easy to navigate. It provides real-time updates on investments and portfolio value, as well as detailed information about each smallcase.
Smallcase Mobile App
The app has five tabs at the bottom:
Home: This is the dashboard that displays an overview of all the smallcases, those that are trending or popular among investors or ideal for getting started. It provides real-time updates and helps you quickly assess your portfolio's performance.
Search: This tab allows you to search and explore the available smallcases. Like the web platform, the list can be filtered based on investment amount, subscription type, launch date, investment strategy, and volatility level.
Create: This tab allows you to create your own smallcase or customize an existing one. You can also save your custom smallcase and track it over time.
Watchlist: This tab allows you to keep an eye on specific smallcases that you are interested in, without having to invest in them. It's a way to track and monitor your preferred smallcases and stay informed about any changes.
Investments: This tab provides a clear view of your portfolio by displaying all of your current investments, including the smallcase name, investment amount, and current value.
The Smallcase mobile app has received mixed reviews from users. On the positive side, users appreciate the app's user-friendly and intuitive design, making it easy for beginners to get started with investing and navigate the app. However, some users have encountered technical issues with the app, such as difficulties with the One-Time Password (OTP) login process, crashes, and the app redirecting to the browser. These issues have caused frustration for some users and made it difficult for them to complete transactions or access the app's features.
Our experience showed the OTP issue was valid, and we needed 2 OTPs to login. Although this issue does not always occur. Despite these challenges, we believe the app has a lot of potential and can be improved in terms of technical stability and the inclusion of additional features such as tutorial videos, a forum under each basket to discuss its performance and more.
Overall, both the Smallcase web platform and mobile application are well-designed and provide a convenient and user-friendly way for users to invest and manage their portfolios.
Now, let's take a closer look at some of the smallcases, their returns, and the strategies behind them.
Smallcase Review - Smallcase Product Offer, Portfolios, and Investment Strategy
Smallcase Product Offer, Portfolios, and Investment Strategy
As mentioned earlier, smallcases are innovative investment products that make it easier to build a low-cost, long-term, and diversified portfolio. Smallcases are created and managed by SEBI-registered professionals who are knowledgeable and experienced in the stock market. For example, Windmill Capital is a team of SEBI-registered research analysts who specialize in building stock and ETF-based portfolios for retail investors. The name of the creator can be found on the smallcase profile page.
You can simply log in to the platform using your broker credentials and start investing immediately. The investment process is straightforward. You can invest in a smallcase using funds from your broker account and start either a Systematic Investment Plan (SIP) or make a lump-sum investment.
The Smallcase platform classifies the smallcases into collections to cater to different investment goals and preferences. We’ll name some of those popular collections:
Trending in 2023: This collection showcases smallcases that are currently trending among new investors, with a focus on the latest investment opportunities and popular investment strategies.
Popular under 5k: This collection offers portfolios that are affordable and in demand, for those who are looking for investment options with a budget of INR 5,000 or less.
Dividend Income: This collection offers the opportunity to invest in dividend-paying companies.
Retirement Planning: This collection provides investment options ideal for building wealth for the future, including education and retirement.
Each collection can be easily accessed from the Discover section and filtered based on specific attributes.
Smallcase collections
For instance, let’s pick the “Dividend Aristocrats” smallcase and analyze it.
This smallcase, managed by Windmill Capital, invests in 12 dividend aristocrat companies with a track record of consistently increasing their dividends over the last 10 years. It is managed by Windmill Capital and consists of 12 stocks from various sectors, including FMCG, IT services, home financing, and more. The minimum investment of this smallcase is ₹ 57,934.
Dividend Aristocrats Smallcase Details
It has a market cap distribution of 66.67% large cap, 16.67% mid-cap, and 16.67% small cap companies spanning various industries, including paints, building products, home financing, and more. The stocks are rebalanced annually, with the most recent rebalance on June 16, 2022 and the next rebalance scheduled for June 16, 2023.
The past performance of this smallcase reveals several rebalancing events since it went live in April 2016. In September 2021, the smallcase reported a return of 69.28% with the addition of 1 constituent and removal of 3, while in June 2022, it reported a return of -5.77% with the addition of 3 constituents. The 7-year compounded annual growth rate (CAGR) of the smallcase since April 4, 2016 is 21.35%.
You can access all the information available for other smallcases, including their fact sheets, which provide comprehensive details similar to the fact sheet of the Dividend Aristocrats smallcase.
Performance
When it comes to the performance of Smallcase, it is essential to understand the platform's transparency and track record. Smallcase provides clear information on the performance of its smallcases since their inception, including the number of rebalancings that have taken place. This information can be accessed from the stocks and weights section and provides users with the full history of each smallcase. Additionally, Smallcase is transparent in its reporting, providing factsheets and portfolio methodologies for full disclosure.
Performance off Dividend Aristocrats smallcase
However, there are also reports of negative experiences with the platform’s reporting, with claims of manipulated and false returns being advertised.
One particular instance of concern mentioned by a user was the removal of the stock Vakrangee from the smallcases, which prevented the platform from showing loss numbers, even though users were unable to sell their holdings as the stock was in a lower circuit (the limit below which a stock price cannot trade on a particular trading day).
Vakrangee price – Source: tickertape.in
Moreover, other users suggest that there are other ways the platform inflates its numbers, resulting in true returns being far lower than the returns advertised due to additional costs associated with rebalancing, such as brokerage charges and taxes. These costs can have a significant impact on overall returns and should be carefully considered before investing.
Another major incident is that there have also been reports of some smallcases not being reported anymore due to poor performance, while investors still hold the portfolio holdings.
In our opinion, it's important to note that market factors play a significant role in the performance of investments, and some issues may not necessarily be related to the Smallcase platform itself. As an investor, you can choose to invest in less risky smallcases or remove stocks from your holdings if you are concerned about their performance.
Ultimately, it is up to you to make informed investment decisions based on your own risk tolerance and financial goals. Hence, while the advertised returns of the portfolios may seem impressive, we recommend that you thoroughly understand the costs associated with rebalancing and perform due diligence before investing.
Smallcase Features
The Smallcase platform offers a range of features that give you the power to manage your investments with ease and flexibility. These features include:
Investment Control: You have full control over your investments, allowing you to enter or exit smallcases, invest more, or sell individual stocks as needed. The "Manage" option allows you to buy and sell individual stocks or shares within the smallcase.
SIP (Systematic Investment Plan): You can start a monthly or automatic investment plan with the flexibility to adjust the frequency and edit or end the plan at any time.
Investment Notifications: You will receive notifications before SIP due dates, ensuring you never miss an instalment. Additionally, you can subscribe to WhatsApp updates for real-time notifications.
Rebalance Notifications: You will be informed of rebalances through email, app notifications, and by subscribing to WhatsApp updates. You can apply, skip, or make changes to rebalances before confirming and placing orders.
Create Your Own Smallcase: You can create your own personalized portfolio by selecting up to 50 stocks/ETFs listed on NSE, organizing them into segments, and assigning weighting schemes. You can also compare past performance and invest in or save your smallcase for later.
Smallcase Review - Smallcase Fees
Smallcase Fees
Similar to most portfolio management platforms, Smallcase charges a fee for its services. You may encounter two types of fees: transaction fees and subscription fees.
Transaction fees
Starting from November 21st, 2022, a transaction fee of ₹100 (or 1.5% of the investment amount, whichever is lower) will be charged for lump sum investments in smallcases and a charge of ₹10 (or 1.5% of the amount transacted, whichever is lower) for SIPs. There will be no fees for rebalancing, partial/full exit, or placing manage orders. Note that other statutory charges, such as GST, STT, Demat, brokerage, and taxes, may still apply. The transaction fees are charged by the broker and can be viewed in the broker ledger and equity contract note. To view the details of these fees, you can check the fee page on your smallcase broker platform.
This means that if you invest ₹1,00,000 in a smallcase, you will pay ₹100+GST (as 1.5% of ₹1,00,000 is ₹1,500 which is greater than ₹100). However, if you invest ₹1,000, you will pay ₹15 (as 1.5% of ₹1,000 is ₹15 which is less than ₹100).
Subscription Fees
Smallcases can be free or require a subscription fee. For paid smallcases, the fee provides access to the underlying stocks and benefits such as rebalance updates, portfolio tracking, SIP, and more. The fee can be either a percentage of the investment amount (AUM-based) or a one-time flat fee. Before a subscription expires, it can be renewed, or after it has expired, it can be reactivated. If a subscriber does not renew within the 7-day grace period, the subscription will be cancelled, and the subscriber can still invest in the smallcase, but will not receive rebalance updates.
Smallcases Fees & Minimum Investment Amount
For example, the "Dividend Aristocrats'' smallcase is free and provides access to underlying stocks and all smallcase benefits without a subscription fee. On the other hand, the "High Dividend Yield and Capital Appreciation," smallcase requires a subscription fee of ₹4720 for 6 months. This fee gives access to the underlying stocks, rebalance updates, and all other features and benefits of smallcase. The fee for each smallcase may vary, so it is important to review fees and benefits before subscribing.
In summary, for individuals seeking automated portfolio management, we think that the free smallcases are cost-effective, as you'll only incur the capped transaction fee. However, it's crucial to examine the fee details on the broker platform before making any investment decisions to fully understand all costs involved and make informed choices.
Smallcase Review - Smallcase Safety and Reliability
Smallcase Safety and Reliability
Smallcase was founded in 2015 under the name “Smallcase Technologies Pvt Ltd'' with a registered office in Bangalore, India. It only allows SEBI-registered Research Analysts, Investment Advisors, Portfolio Managers, or Brokerage Houses to create and manage smallcases as per SEBI guidelines. It also has a wholly owned subsidiary company “Windmill Capital Private Limited'', which is registered with SEBI as a Research Analyst (SEBI Reg no - INH200007645) and is engaged in research activities and creates some of the smallcases available on the platform and which are free.
The platform prioritizes the safety and reliability of its users' funds where funds invested through smallcase are held in a demat account with a registered broker and all transactions are executed through a secure and encrypted connection. Additionally, smallcase has implemented measures to prevent fraud and unauthorized access to user accounts.
These are the brokers acceptable by Smallcase:
Zerodha
Upstox
Trustline
Kotaksec
IIFL
Nuvama
Angelbroking
Aliceblue
5Paisa
HDFC Securities
Axisdirect
MOSL
Groww
ICICI direct
Fundzbazar
Dhan
Smallcase Review - Smallcase Customer Support
Smallcase Customer Support
Smallcase offers a comprehensive customer support system for its users, with multiple channels of communication available including an FAQ section, email, and phone. Although a live chat service is not offered, users have generally praised the support team for their helpful and friendly approach.
In addition to its customer support, the Smallcase blog “Smalltalk” is a comprehensive resource for its users and investors, offering a range of sections that cater to various investment needs and interests. The four main sections of the blog include:
Investing Insights: This section provides in-depth information and educational articles on various aspects of investing
Postweek Reports: The weekly round-up of market news which is a quick and convenient summary of the most important financial events of the week.
Smallcase Rationales: This section offers a deep dive into the Smallcases, explaining the portfolio construction and investment strategies behind the platform's offerings.
Inside Smallcase: This section provides updates, guides, and stories from the Smallcase team.
Overall, the Smallcase customer support system is considered to be efficient and effective, their blog is also a good resource for new investors or busy investors who want to have a weekly wrap up making it a reliable resource for users seeking assistance, still there are several ways of improvement.
Smallcase Review - Smallcase Account Opening
Smallcase Account Opening
The account opening process on Smallcase is user-friendly and straightforward. You can start by registering on the platform's website or mobile application, providing basic information such as name, email, and phone number. After verifying the phone number through an OTP, you can access information about various smallcases available on the platform. However, to invest in a smallcase, you need to link your brokerage account to Smallcase by following these steps:
Log in to Smallcase on the website or app
Go to the desired smallcase and click on "Invest Now" or from the “Account” menu click on “Connect Broker”
Select the broker from the list of supported brokers
Follow the instructions provided by the broker to link the account
Invest in the desired smallcase once the brokerage account is linked.
It's important to thoroughly review the terms and conditions of the brokerage before linking the account to Smallcase.
Login with Broker window
Smallcase Review - The bottom line
The bottom line
In conclusion, Smallcase is an Indian investment platform that offers access to professionally managed portfolios of stocks and ETFs called "Smallcases." It is a user-friendly and convenient platform that provides investors with access to expert investment themes and the ability to easily diversify their holdings. The platform offers several features, including investment control, SIP, investment notifications, rebalancing notifications, and the ability to create custom portfolios. Smallcase also has a well-designed web and mobile application for easy portfolio management.
Based on our analysis of Smallcase, we believe that it presents an appealing option for Indian investors searching for a diversified portfolio that can be automatically managed while still allowing them to make modifications as they see fit. However, it is crucial to keep in mind the potential downsides of the platform, including fees like transaction fees and other charges that vary based on the broker and the type of investment. Other drawbacks include a limited range of investment options, the absence of personalized investment advice, and availability solely to Indian residents.
In the end, we recommend that you thoroughly understand the costs and to consult your financial advisor before making any investment decisions, as investments are subject to market risks.
We hope this review has been helpful in answering your questions about Smallcase. If you have any further questions or feedback, please feel free to leave a comment or reach out to us directly.
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