Comment on Introducing smallcase — Invest in ideas

Sriram commented on 15 Jul 2016, 04:52 PM

Greetings !
Smallcase is a novel idea indeed ! Please clarify the following :

1. Elsewhere you have mentioned “You can invest any amount into a smallcase as long as it is greater than the minimum amount for that smallcase” – But here, “greater than” can only be in multiples of the “minimum investment” amount for a particular smallcase right ? For instance, if the minimum investment for a small case is Rs12335.35, then the greater amount than this cannot be Rs 15000, it has to be Rs24670.70, so on so forth right ?

2. When we keep rebalancing every quarter, if need be, then I suppose short term capital gains tax apply for the individual stocks that exit the particular smallcase.

3. Could you please elaborate how is demat charge applied when i sell a small case as a whole or individual stocks within ? Rs 13.50 flat applied for the whole transaction irrespective of the value ?

4. Again, is Demat debit applied for each scrip within the smallcase when i exit the smallcase as a whole ? If there are 20 scrips, then the charges are Rs 270 (20*13.50) ? (or 20*12.50 as the case may be)

5. How do you determine individual scrip quantity to be transferred to Demat ? For instance, minimum investment in Bargain Buys is Rs871. You allocate 871 to stocks based on weights and then divide it by stock price to arrive at the qty for each and every scrip ?

Thanks,
Sriram

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