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How Do I Judge a Smallcase?


Smallcase is a platform that allows you to buy and sell stocks in predetermined combinations and quantities that may follow a theme or an idea that the fund manager wishes to express.


They have taken over the equity space, with many new age investors opting for the ease and affordability being offered by this platform - for investors and fund managers.


Now that the basics are out of the way, let’s get into how you can use the following metrics to judge a smallcase before investing in it:


Portfolio Rationale

Each smallcase has a principle or reason to help you understand why you should invest in it. For example, Monopolies is a portfolio which is based on creating wealth off companies that have a major market share in their respective industries, supported by earnings growth!


Volatility

Understanding volatility while investing is as important as analyzing returns. Stock prices move up and down on a daily basis, resulting in fluctuating investment value. Based on their performance against the index, assess their volatility!


CAGR (Compound Annual Growth Rate)

CAGR indicates the average yearly return generated by a smallcase since launch. Each CAGR value comes with a time label, making it more contextual. It reflects the time period over which the CAGR for that particular smallcase is calculated.


Smallcases that have been live for over a year now have an annualised CAGR and live for under a year, which will show absolute return values instead of the CAGR.


Minimum Investment Amount

It suggests the minimum amount required to invest in all constituents in the prescribed weighting scheme. Click on this link for an example provided by smallcases themselves!


Check out our selection of Rupeeting Equity portfolios, curated by experts who have over 50 years of combined investment expertise and have overseen the management of over Rs. 50,000 crore.





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