Discussion & Feedback on Smallcase

Any folks here investing in ready-made stock baskets via Smallcase?
Share below the top 2 reasons that got you there and your favourite feature!

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I used it (as in - bought one smallcase to start with) when it first came out. Naive investor that I was back then, it seemed like an easy option.

I got good returns initially, but, with every rebalance, most of the stocks started going in red. I got out of it. Obviously, this is anecdotal and I wouldn’t ask you to make a decision based on this.

What I felt though - quarterly rebalancing seemed unnecessary. It is NOT like Mutual Funds i.e. you are selling and buying stocks through KITE when you rebalance. Meaning - capital gains tax is coming from your pocket. You have an option to not rebalance… but then, you would think that since I’m following a theme, maybe I should stick with their ‘corrections’ otherwise I’m not following the theme.

Instead of keeping an active eye on their rebalancing every quarter, I decided to automate SIPs in direct MFs. I do less interventions now.

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Had invested in Smart Beta Low Volatility index a Year ago. Though not much time has passed till now I am happy. Works as expected.

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It must allow user created smallcases to be shared across family members during the lifetime of the smallcase and not only when in draft. This helps with rebalancing.

I bought Sustainable Earnings in April 2018.

Within a couple of months, it was more than 12-15% down. Moreover, the portfolio of stocks does not have sustainable earnings.
From the original portfolio, there is only 1 stock that is still in the bucket, the funny thing is 2 years later it is still lower than the purchase price. All the others have been shuffled multiple times. Right now this bucket has 5 stocks only, I am not a stock market wizard but I believe 5 stocks in a portfolio is downright stupid or genius.
In this case, it looks like the former. After a few rebalance, I stopped doing rebalances and started studying and investing on my own.

Now from April 2018 to today, this smallcase has underperformed grossly, at least my own skills have done better than this smallcase.

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The best invention since the bread :slight_smile: But seriously its a boon for busy lazy investors and the best tool to get the taste of investing directly in stock markets.

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I used it in the initial days, when I would not pick a stock basis my own research. At the end of buying multiple smallcases I ended up making the worst mistake at a portfolio level - Holding ~75 Scrips at a point in time!

Stopped doing that, but since then smallcase has multiple new ways of investing:

  1. Choose your smallcase | Discover smallcase Choose different fund/ fund mgrs
  2. Invest in ideas | smallcases on Zerodha Create your own smallcase

Will revisit it to use the above ways!

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Words of the wise - doing one’s research and investing.

The Smallcase however does research, picks stocks and does a rebalancing regularly. So has a benefit if they do a good job at selecting. But these are active investments we are talking about and have lesser chances to beat the market over a very long term. Index investing is the way and there are a lot of such Smallcases like that which are based on ETFs.

I personally have shifted to buying ETFs and forgetting that I own them via Smallcase only and I created my own and so far very happy with it. And for the first time in my life started investing in debt systematically. Reliance on MFs have reduced a lot and I at least get the market returns while not giving the expense ratios to the fund houses.

Slowly aim to reach a place where I pick all the stocks by myself (for now 80% goes to passive investing and 20% to active and picking stocks).

And Zerodha has launched a similar feature to help here. They have launched the SIP in a stock feature as well where you can do the same in a DIY manner.

P.S. for how to use the zerodha sip feature:

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It has improved my knowledge on investments a lot and made me a informed investor, a clean and seamless tool for 1st time investors.

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Totally agree with @sahil-sorathiya

They are not different from any other traditional stock analysts and their recommendations. You should do your research and due diligence on these recommendations.

Wish Kite and Smallcases to be more tightly integrated eg trades on Kite to auto reflect in smallcases.

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Why would you need that though? (Currently smallcase txns are reflected on Kite - Holdings)

i think @dhaval is talking about the transactions of selling some stocks of the small cases in kite directly rather selling them through smallcase’s interface. This is a problem because my smallcase interface still shows that i hod some stocks which i have exited 2 years back. and there seems to be no easy way to communicate to smallcase that i sold them. at least i could not find it.

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