Definition
Smallcase
A smallcase is a ready-made basket of stocks or ETFs built around a theme or strategy that investors can buy in one click through their broker, holding the securities directly.
A smallcase is a curated portfolio of stocks or ETFs reflecting an idea — say a sector, factor or theme — that you can invest in as a single package via your demat account. You own the underlying securities directly, unlike a mutual fund unit.
Smallcases are periodically rebalanced by their creators, and you choose whether to apply the updates. Some are free; many model portfolios from SEBI-registered advisers charge a fee. Because you hold the stocks, you handle the capital-gains tax on your transactions.
They offer transparency and thematic exposure with low minimums, but returns and risk depend on the chosen strategy and market movements. Concentrated or thematic smallcases can be volatile.
Related terms
- Portfolio Management Service (PMS)A Portfolio Management Service is a SEBI-regulated, personalised investment service where a professional manages a wealthy client's portfolio, subject to a high minimum investment.
- Robo-AdvisoryRobo-advisory is automated, algorithm-driven investment advice and portfolio management delivered online, typically recommending and managing low-cost diversified portfolios based on your profile.
- Direct IndexingDirect indexing means owning the individual stocks that make up an index in your own account, rather than buying an index fund or ETF, allowing customisation and tax management.
Plain-English explainer from The Dispatch Investors Encyclopedia. General information, not financial advice.