A smallcase is a portfolio of up to 20 stocks affected by a theme. A theme could be a new government initiative like Digital India or Smart Cities Project; long term trends like rising middle class consumption or increasing demand for leisure products; or simply an investment strategy based on fundamental criteria like earnings growth or dividends. Stocks included in a smallcase are expected to perform well as the theme plays out
For example, Dividend Aristocrats is a smallcase that consists of companies which have increased their dividend payout consecutively for last 10 years.
Each smallcase has the following attributes to understand it better
Index Value: Every smallcase index starts from 100 and represents the return generated by the smallcase since its inception. For Dividend Aristocrats, an index value of 234.99 tells that it has generated a return of 134.99% (234.99-100) since its inception. You can view the inception date of the smallcase under the Overview.
Returns: The 1 year/1 month return shows the historical returns generated by smallcase in the respective time period. The above image shows that Dividend Aristocrats has generated a return of 52.92% in the last one year
Minimum Amount: It suggests the minimum amount required to achieve the prescribed weighting scheme of the smallcase. To maintain prescribed weighting scheme of the Dividend Aristocrats smallcase, a minimum of ₹13764.70 needs to be invested. This amount changes in real-time based on the current prices of the stocks in the smallcase
Rationale: Each smallcase has a sound rationale & reasoning for why it was created and why you should invest in it. This section also shows you the methodology used to create the particular smallcase.
smallcases are similar in concept to Mutual Funds, but provide you with more control & are cost-efficient as well.