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Who Manages Smallcases?



What is a Smallcase?


The Smallcase platform enables RIAs to create a portfolio centered on a theme and make it available to people. On Smallcase, RIAs can build microsites to introduce their portfolio services. Through a broker, the individual can then invest in the RIA-managed smallcase.

The minimum investment amount for participants in Portfolio Management Schemes (PMS) was increased by the Securities and Exchange Board of India (SEBI) from 25 lakh to 50 lakh. Smaller investors may find SEBI Registered Investment Advisors (RIAs) to be an interesting alternative because there is no such minimum investment requirement.


What are RIAs?

  • SEBI Registered Investment Advisors typically oversee the management of smallcases (RIA).

  • An RIA is a financial advisor who has a fiduciary duty to give clients financial advice while keeping their best interests in mind.

  • They charge a one-time flat fee for the service rendered and an ongoing fee based on the performance of the investment.

  • In accordance with Regulation 3 of the SEBI (Investment Advisors) Regulations, 2013, it is forbidden to give investment advice in India unless the advisor is registered with the SEBI or is exempt in another way.


What Do They Do?

Understanding the various factors affecting the investor's investment is the SEBI Registered Investment Advisor's most important responsibility. The critical elements that a SEBI Registered Investment Advisor must take into account for an investor are as follows:

  • The time horizon of the investor

  • Returns needed to meet investment goals and expected returns

  • The risk profile of the investor

  • Tax bracket of the investor and tax saving investments suggestible

  • Liquidity constraints of the investor and illiquid assets

  • Legal factors of the investor like pending litigation, investment restrictions, etc


Smallcase 🤝 RIA

Smallcase has been used to launch services by more than 50 RIAs. RIAs can utilize smallcase to assist investors with any unique investment goals. Depending on the various factors mentioned above, the RIA has a role in recommending an appropriate strategy to the investor. Value investing, dividend-growth investing, ESG investing, momentum investing, and other strategies are examples of the various approaches.

While investing, the client's money is not kept by the RIA. The client has total control over the money invested and the securities kept in their Demat account with smallcase. Smallcase RIAs can give clients timely guidance for selecting the right stocks, rebalancing the portfolio, and conducting routine performance reviews.


Speaking of, why don't you check these smallcases out?



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