Is Investing Through Smallcase Safe?

The smallcase is a novel approach to stock investing. Instead of going through mutual funds, it allows customers to buy ready-made portfolios directly. It focuses on current market themes, financial models, and various risk profiles.

It’s a Bengaluru-based Fintech company launched by three IIT graduates in 2016. Currently, 13 brokers offer this avenue, including HDFC Securities, Kotak Securities, Axis Securities, Zerodha, and Edelweiss. It allows the investors to take exposure to professionally researched portfolios with their existing Accounts for trading and depository receipts

It is built on simple concepts that are easy to grasp. It was designed by India’s top financial professionals and is completely customizable. You can easily add or remove your preferred stocks. It contains up to 50 stocks that represent a theme, concept, or approach.

Smallcase is based on a variety of themes, including pharmaceuticals, insurance, and real estate. The equities in the portfolio, their proportions, and the investing reasoning are all visible.

Is Investing Through Smallcase Safe or Not?

Smallcase’s safety cannot be questioned, as they have been in operation for over 5 years, providing extensive and secure assistance to their investors.

Why is Smallcase so secure?

  • Smallcase is a subsidiary of Windmill Capital Private Ltd, a SEBI-registered company with the number INH200007645.
  • To assist their investors, they have assembled a team of skilled, professional, and experienced individuals.
  • Collaboration with major investors such as Blume, Faering Capital, Beenext, Amazon, Arkam Ventures, and others.
  • They provide portfolio investing opportunities.
  • They provide pre-built themes and strategies.
  • Smallcase allows for any amount of investment.

This is not the end. You may find a lot more features, benefits, and success about smallcase. However, even these small points enforces us to trust smallcase strategies and investing plans.

There is a money and stock exchange, just like any other brokerage firm. When you invest in the smallcase, money is deducted from your trading account, and stocks are credited to your Demat account. Because there is no lock-in period, you can sell these stocks whenever you wish.

If you have a long-term view of investing in the stock market, you can put your money in a smallcase. If investors are in the short run method, then they should consider other alternatives. 

Also Read: Advantages, Goals, and Objectives of a Demat Account

Types of Smallcase Accounts

There are two categories of smallcases:

  • Free

Depending on the broker, you must pay a one-time fee at the time of purchase. Aside from that, there is no subscription fee. The stocks and their corresponding weights are visible to you.

  • Paid

These are smallcase subscription accounts where you must pay a set amount up front. You must pay a different precise sum to invest in distinct smallcase accounts.

It’s like a gadget for the people who are confused between mutual funds and stocks. 

You own the stocks directly in the case of a smallcase. Mutual funds, on the other hand, solely hold units rather than equities. In a nutshell, with smallcase, you are buying and selling stocks directly. As a result, all profits are subject to capital gains taxes. Buying or selling mutual funds, on the other hand, does not result in capital gains for investors.

The major difference between investing directly in mutual funds and investing in smallcase is the cost. You never know what your equity mutual funds possess at any given time. In the smallcase, you know where your possessions are at any one time in your Demat account.

There are currently 250 stock baskets available, with 120 of them managed by SEBI-registered Smallcase managers. A basket of stocks can be offered by anyone who is registered with SEBI. Windmill Capital, Weekend Investment, and Capital Mind are the most popular managers.


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Absolutely, Smallcase is safe and secure, as it is a subsidiary of Windmill Capital Private Ltd, a SEBI-registered business (SEBI Registration Number INH200007645). In addition, they have a staff of talented, professional, and experienced individuals to assist their investors.

You must contact one of the 12 brokers to purchase the lowest basket. You should be able to determine which one to purchase based on them. It gives you the option of accepting or rejecting the smallcase manager’s recommendation.

The disappointing performance of mutual funds, the desire to do-it-yourself, and the younger investors participating in the market continue to drive investors to Smallcase.

If you want to manage your portfolio but don’t have the time, a smallcase is a good option. Purchasing a pre-made portfolio is a good choice, and it’s up to you to decide whether it’s right for you.

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