The stock market can be a confusing place for beginners. There are a plethora of securities with different characteristics, risks and possibilities. So how do you pick just one? You can invest in many securities concurrently, but that means more capital and cost.
Worry not, as financial innovation has introduced several modern and sophisticated asset allocation products. Smallcase is one of them. But what exactly is the concept and why should you invest in smallcase? Let us understand in detail.
What is Smallcase?
A smallcase is a modern investment product where you can create a portfolio of handpicked stocks and ETFs. If you do not have that level of financial expertise at the moment, don’t worry. Well-known investment platforms such as Dhan provide smallcase packages curated by financial experts and advisors on a user-friendly interface.
Smallcase consists of a variety of securities clubbed by financial superminds based on predetermined themes, ideas and strategies. Small case aims to combine long-term winners with tactical bets & enhance the scope of gains.
But why you, as a beginner, should choose smallcase? Let us discuss this in detail.
Why Should You Invest in Smallcase?
Smallcase brings a sense of order and simplicity to the world of financial instruments that is otherwise complex. Here are five reasons why a beginner can go for smallcase investment.
1. Simple
Most new age investors prefer the ease of online investing. A smallcase investing platform allows you to take positions and unload them with a simple click. Other financial instruments can be complex to invest in for a beginner.
Also, smallcase portfolios are based on relatable themes, ideas and strategies. Thus, they are simple for new-age investors to understand.
2. Reduced Risk
Smallcases combine multiple stocks in one place, thus diversifying the portfolio and reducing the risk. The investor is protected from the volatility of a single stock. ETFs also allow investors to diversify their investments between a variety of asset classes.
3. Cost-effective
Investing in multiple stocks means multiple transactions, thus reducing your capital. Smallcase is cost-effective in comparison as you can invest in multiple stocks and ETFs at once. On investment platforms like Dhan, small case investment is free and you don’t have to incur any additional expense apart from STT, transaction charges, Demat charges and taxes.
4. Full Control
As an investor, you will have full control over your portfolio of securities. You can track the performance of your securities through your broking platform at all times. There are no lock-in periods, thus giving you the ability to add or offload any stock as you choose.
5. Managed by Experts
The smallcase portfolios are crafted by experts having years of investment experience. They are usually SEBI registered, thus making them a relatively safer form of investment. You can choose from a variety of small case including low investment, low volatility, thematic etc.
Conclusion
If you are a beginner getting started with online investing, smallcase is a good investment option. It provides you access to a portfolio of stocks crafted by financial masterminds based on ideas, strategies and themes. With Dhan, you can sign up and easily invest in small case with a Demat account.