Comment on Introducing All Weather Investing smallcase

Vasanth Kamath commented on 01 Aug 2018, 01:16 PM

Some advantages of investing in smallcases over mutual funds
Simple to Understand
smallcases reflect understandable ideas & themes like rising rural demand, increasing internet penetration, zero-debt companies, affordable housing, GST implementation etc – making it easier for you to understand what they’re taking exposure to

With smallcases, you only pay when they transact (flat fee approach on Zerodha with zero brokerage), vs an expense ratio that investors pay on a daily basis

Transparent & Flexible
While investing in a smallcase, you have a clear idea of what stocks they hold, as there is direct ownership of stocks in their demat account. This also means you have an option to customize the constituents of a smallcase and change their weights whenever they want to

Number of mutual fund types are limited, whereas any actionable idea can be a smallcase (be it theme-based like Smart Cities, Speciality Chemicals or strategy based like Magic Formula, Dividends or even sectors like Insurance that aren’t available in mutual funds yet)

A smallcase is as liquid as the stocks/ETFs in them, so can be transacted (bought or sold) anytime the markets are open

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