All stock market enthusiasts want to minimise investment risks. Investment in smallcases can accomplish this common goal in the online investment journey. After reading the article, conclude whether you should invest in a smallcase or not.
Let us begin by understanding what is a smallcase to arrive at any conclusions.
What is a smallcase?
Smallcase is a pool of stocks & ETFs representing a theme, idea, or strategy. smallcases are curated by experts like portfolio managers or leading independent stock market advisors.
Investing in smallcase involves putting money into a pool of ETFs or stocks. These stocks are generally low-cost with a long-term vision. It helps invest funds in an idea you believe is.
Why Invest in a smallcase?
smallcases provide diversification benefits as they minimise stock-specific risks. As an investor, you have control over smallcases. You can add or remove stocks or ETFs to curate your smallcase. You may also modify a smallcase curated by experts to suit your preferences.
You may conduct sufficient research for online investing and subscribe to one of the smallcases offered. It allows you to invest in the entire portfolio with a single click. Investors can keep a real-time track of the transactions and assess the performance of portfolios.
A feature on the Dhan app notifies investors whenever a change in their portfolio requires rebalancing stocks. Investors can confirm the same by visiting the app and clicking on the option to ‘Rebalance’.
You can access the platform anytime, anywhere, and flexibly place, buy, or sell orders. The transaction history provides all the necessary details and sends you a confirmation text whenever a transaction is executed.
Things to Note Before Investing in smallcases
Following are a few tips that can benefit and call for your consideration when considering smallcase investment.
- As the smallcase charges comprise a significant component, you must carefully check the total amount. A subscription fee is a basic charge levied to access a smallcase. It can be payable as a fixed cost annually, semi-annually, quarterly or monthly.
- Since online investing in smallcases requires a subscription fee, the portfolio you invest in must cover the cost incurred before counting on your gains.
- The other smallcase charges, such as taxes and transaction costs, must also be monitored. Hence, the minimal the transaction fees, the better will be your gain.
- About 15% Short-term Capital Gain Tax is levied when you choose to rebalance a smallcase within a year’s time.
- One of the benefits of online investing in smallcases is the complete control of your portfolio, with no lock-in periods. Furthermore, since the portfolio of a smallcase is diverse, the risk is minimised.
- As an investor, during online investing, you should be ready to tackle every low and high and park funds in different stocks as may be required.
Conclusion
If you are keen on online investing, you can open a Demat account within minutes and start investing in smallcases. When you open a Demat account, you can access your investments in one place. The process to open a Demat account is simple and easy to follow. Start your investment journey today!
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