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

Cost-Efficient
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

Use-Cases
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)

Liquidity
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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