When you invest in stocks, you need to select good quality stocks that have the potential to grow. Such stocks can give you good returns on investment. Moreover, a diversified portfolio is essential for risk mitigation and profit maximisation.
As such, you can pick individual stocks and create a diversified portfolio for yourself or look at readymade solutions like Smallcase.
A Smallcase is a basket of securities managed professionally, containing primarily stocks and ETFs (Exchange-Traded Funds). The basket is created based on a particular theme, investment objective, or strategy.
For instance, a Smart Beta Smallcase would invest in low-risk stocks so that the volatility is minimised without compromising on the returns.
Start Investing with Free Expert Advice!
You can open a Demat and trading account with any authorised broker to start a Smallcase investment. Motilal Oswal is a recognised broker. You can open an account with Motilal Oswal and invest in a Smallcase in one click.
You can also create a personalized Smallcase of up to 50 stocks. Choose the custom option and add stocks to make your own Smallcase.
While investing in a lump sum in a Smallcase, you can opt for the SIP (Systematic Investment Plan) route. The minimum investment required through SIP is ₹5000, and you can invest monthly, weekly, or even quarterly.
Open a Demat and trading account with an authorised broker and choose the SIP investment mode. You can choose the SIP amount and frequency and start investing in Smallcase through a SIP.
While Smallcase gives you a readymade basket of securities, there is no lock-in period. You can sell your Smallcase and exit completely. There are two options for exiting a Smallcase –
Depending on the broker you choose, you can get personalised recommendations for Smallcase. Motilal Oswal gives you investment recommendations that match your strategy so that you can pick the right Smallcase for your savings.
You can also track and monitor your Smallcase through the online portal or mobile application. Go to the ‘Draft’ section or the ‘Portfolio’ section and see your saved Smallcases. You can also edit and change your Smallcase through withdrawals or additional investments.
Returns from Smallcase are not guaranteed. They depend on the type of Smallcase you selected and the underlying securities' performance.
Investing in Smallcase incurs some charges that you should know about. These charges are as follows –
Depending on the service request you place on the Smallcase, there might also be other charges.
When it comes to taxation, Smallcase investments are taxed as stocks. Here’s the tax implication on redemptions made in a financial year without cess and surcharge –
|Long-term capital gains when STT (Securities Transaction Tax) is payable||Returns up to ₹1 lakh are tax-free. Excess returns are taxed at 10%|
|Long-term capital gains when STT is not payable||20% of the returns earned|
|Short-term capital gains when STT is payable||15% of the returns earned|
|Short-term capital gains when STT is not payable||Taxed at your income tax slab rate|
So, understand what Smallcase is all about and how it works, and then choose a suitable Smallcase for a professionally managed and tailored basket of hand-picked securities.