What Is a Smallcase

A smallcase is a curated basket of exchange-traded securities, such as stocks and ETFs, built around a specific idea, theme, or investment strategy. Each smallcase contains a minimum of 2 securities and can include up to 50 securities, depending on the strategy.

Smallcases allow investors to invest in a broader idea rather than selecting individual stocks, making the investment process more structured and diversified.

How Is a Smallcase Different from Investing in Individual Stocks

Investing in a basket of stocks provides diversification benefits, helping reduce stock-specific risk. Instead of choosing individual companies, you can invest in research-backed portfolios that reflect long-term themes or strategies you believe in.

Smallcases do not charge any transaction fees. Standard brokerage charges, as applicable by your broker, continue to apply.

Which Smallcase Should You Invest In

Smallcases are best suited for long-term investing. Ideally, you should select a smallcase whose theme or strategy you believe will perform well over the long run.

Each smallcase is assigned a risk label, which helps you choose one that aligns with your risk appetite, investment horizon, and overall portfolio allocation.

How Do You Track Your Smallcase Investment

When you invest in a smallcase, its index value is set to 100 on the day of investment. This makes it easy to track overall performance without monitoring each individual stock.

Performance metrics and reports provide additional insights into returns, allocation, and strategy effectiveness.

Flexibility to Manage Your Investments

Smallcases offer complete flexibility. You can add or remove stocks using the “manage” option within the smallcase platform. However, to ensure accurate tracking and portfolio integrity, smallcase stocks should not be sold directly through the broker’s trading platform.

Is There Any Lock-In Period

There is no lock-in period in smallcases. You may exit your investment at any time. However, as a concept, smallcases are designed to deliver better outcomes when held for the long term, allowing the underlying theme or strategy to play out.

Best Practices: Do’s & Don’ts

Do

1. Invest Systematically
Starting a Systematic Investment Plan (SIP) helps you invest regularly and manage market volatility. SIP investments can be executed easily with minimal effort.

2. Rebalance Regularly
Rebalancing ensures that the smallcase continues to reflect its intended strategy. Rebalance updates can be applied quickly to keep the portfolio aligned.

Dont

1. Sell Stocks Individually on Trading Platforms
Selling smallcase stocks directly through the trading platform can disrupt portfolio tracking and strategy alignment.

2. Let Emotions Drive Decisions
Smallcases are designed for long-term themes. Short-term market movements should not dictate investment decisions. Staying invested with discipline is key.

Our Approach to Smallcase Investing

At SLD Finance, we recommend smallcases only when they fit within your overall asset allocation, risk profile, and long-term goals. We help you understand the strategy, risks, and role of smallcases in your portfolio  ensuring they complement, not replace, your core investments.

Themes work best with time and discipline.
We help you invest with clarity and confidence.