Under smallcase Investment tab, Profit/loss arising out of buy and sell trades done in smallcase would be computed by averaging method. For e.g. If you buy a stock  @Rs 100 Quantity 5 as suggested in smallcase, later to invest more, you buy more 5 shares @Rs 110 and few months later you partially exit by selling 5 shares @ 120, you profit will be computed by considering buy price as average of 100 and 110 = 105.

Thus your profit will reflect as 5* (120- 105) = Rs 75. 

Average buy and sell prices under this tab will not be considering the brokerage and other statutory charges paid by you for the trades done through smallcase. 

However under AxisDirect Portfolio section, in Profit and Loss statement and well as Capital Gain/Loss statement, where your overall profit and loss will be computed, brokerage and other statutory charges paid by you for the trades done through smallcasewill be considered. 

Please note, objective of Investments tab under smallcase feature is just to reflect the Performance of the smallcase and should not be considered for reporting Capital Gains/loss.