Zerodha Smallcase Review

Zerodha, a largest and number one brokerage firm that provides discount brokerage in the stock market of India launched a startup called small case, the first equity investing platform in India. It is mainly designed for the retail investors. Zerodha is one of the largest brokerage firm that provides discount brokerage in the stock market of India. Small case is one of its first kind, where customer can easily invest in stock market, without going through the clumsy and diversified approach of investing in stock market. It is a customer friendly platform, where one find an unwavering support and often leaves its clients with a cheering experience. The company is being run by discount broker Zerodha and its products are currently available only to clients of Zerodha’s. You need to have a Zerodha trading and demat account in order to invest in smallcase. To open an account with Zerodha is not a pain in neck at all. Its process is an easy going task. After finishing your online registration process within some time a representative from Zerodha customer support will call you, update you with the whole process and will solve all queries regarding it. They also have some blogs named as Z-connect, Trading Q&A, Pulse for the layman’s written by experts where they can learn and understand the things concerned with this field. Zerodha is the cheapest brokerage company that offers you brokerage free equity delivery. Trade can be done through them on minimum charges as compared to other firms. Buying and selling of  shares are done through  demat account . No concealed charges of doing trade through Zerodha except the genuine charges are applied almost same as other firms which are GST,  Securties transaction tax, Transaction charges, Stamp charges and SEBI charges.

Normal investment involves a tedious process and for this reason often customer fails to invest properly in stock market. It requires a long process where a customer needs to create, buy, manage and track portfolios. The process is time consuming and often needs advise from an expert or specialist of the concerned field.

Small case, as told by Vasanth Kamath, co-Founder, smallcase, “We are making investing in stocks simple, safe and natural for first-time investors. We want an investors to understand where they’re investing their money — at the same time, since a smallcase is a portfolio, this approach diversifies risks making it a better way to invest.” Smallcase for the first time tried to minimize all those tedious and boring process and compiled everything in a single step. It has its own screener, and is considered as one of the best user friendly platform. Screener is basically free and if you choose go premium then you are charged Rs100/month. Themes ( or smallcases) are identified in this platform. The themes are selected carefully keeping in mind the long term trends, technology, market process, change in Government policies etc. There are around 44 themes and portfolios of stock around them, which is intelligently created so that it catch on in the next few years according to the market. Each smallcase holds between 10–20 stocks, and is up to date with the latest developments based on the theme it reflects.

Small Case of Zerodha combines two investment approach: Thematic and Portfolio

Thematic investment deals with investing by following the changes around you. Change brings an investment opportunity, normally retail investors is not aware, how to use these changes while investing.

Portfolio investing allows diversification benefits of a portfolio while allowing you to take exposure to market themes with effective and improved systematic investment. It made custom index values, tracking and managing multiple portfolios possible in a few clicks. Also one can also create your own smallcase by picking stocks and assigning weights to them.

Small case is often considered as best return giver. The reason, people normally do not have time to watch and survey the working of different shares in the market, as a result of which people just buy stocks without having sound knowledge in market are on hope that market will always remain upside in long term. There is an option of REBALANCE in smallcase, where the experts will look after our investment. This makes the returns in smallcase as the best returns giver. Moreover, smallcase allows an investor enter and exit the platform anytime without a charge. Small case has almost more than 5,000 registered users and 550 paying customers. Every fourth month smallcases are rebalanced. The most popular themes are GST Opportunity, Magic Formula and Growth at a Fair Price. The management of the company is also in talks with other brokerages firms to offer these products.

There are four types of smallcases.

  1. Select smallcase: These are attractive and offers best options as compared to other smallcases.

  2. Thematic smallcase: These deals with recent market there, that is growing most in present time.

  3. Model smallcase: These based on strategic/fundamental/technical models.

  4. Sector smallcase: Thses based on sector based exposure.

As mentioned by Smallcase, Vasanth Kamath, founder, Smallcase is the first thematic investing platform for India. There are different baskets or thematic groups such as ‘GST basket’, ‘monsoon cheer’, ‘rural demand’ etc. Each basket consists of stocks in different proportions, which can gain most if the market works out accordingly. “The basket is an intelligently-weighted portfolio of stocks that is created after surveying on the ups and downs of trending market idea or theme”. As for example, the basket ‘Incredible India’ consists of four sectors namely airlines, healthcare facilities, leisure facilities and hotels. At just one click one can buy the incredible India basket which has Interglobe Aviation (1 share), Narayana Hrudalaya (4 shares), Apollo Hospitals (1 share), Indian Hotels (11 shares), Mahindra Holidays (3 shares), Byke Hospitality (8 shares) and Wonderla Holidays (3 shares). The one click can let you buy share of all the mentioned organizations. Such bets provided by small case after a detailed analysis of the market, can help investors outperform the market. In the past one year, the Incredible India basket has given a return of 25.61% as against the Nifty return of 1.9%.

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