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Types of Smallcases


For all types of investors, Smallcase is an excellent investment tool. That's because it provides a wide range of options tailored to each investor's risk tolerance and return expectations. Let's examine the smallcase classification system and discuss how to choose the smallcase that best meets your requirements.


Types of Smallcases

Smallcase is a collection of equities or ETFs chosen based on the risk tolerance of the investor. The various varieties of smallcases are shown below. They each have different entrenched beliefs.

Based on Volatility :

  1. Low Volatility: Risk-averse investors who do not want significant swings in their portfolio over a short period of time choose smallcases under this head. These are made up of asset classes with a track record of stability and security. Their smallcase seeks to achieve more while carrying a significantly lesser risk.

  2. Medium Volatility: This kind of smallcase frequently consists of high conviction stocks that have volatile movements but follow a steady market cycle. This kind of smallcase is preferred by slightly risk-averse investors who want to boost their return by taking on additional risk.

  3. High Volatility: Volatile assets are used to make these smallcases. Volatile smallcases require balance and assessment every quarter. These are produced using equities that, by professional standards, are undervalued. Higher the risk higher the reward.

Sectoral Cases (Industry Based)

Smallcases designed for a certain industry that investors wish to keep supporting. If you build an investment portfolio focused solely on that industry, these smallcases would be considered assets utilising that industry type.


Beta Themed

Smallcases designed using quantitative investment methods based on mathematical and statistical principles are known as "beta-themed." To obtain a fair rate of return on your assets, these smallcases employ a quantitative strategy.


Trend Following Smallcases

When building a portfolio, it's important to adopt a rational strategy when deciding which stocks, ETFs, or asset classes to include. A trend-themed portfolio concentrates emphasis on various market trends. Smallcase based on the trend concept needs to occasionally be rebalanced by adding and removing trend following components.


Conclusion

Bottom line is that there’s something for everyone. Smallcase is a dynamic tool that provides you with portfolios at all levels of risk, with different themes and multiple portfolio management strategies. Its one of best instruments out there to invest your money in the markets.

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