Equity Portfolio Advantages - smallcase Investment – Axis Direct
Jul 13, 2018 | Source: AxisDirect
smallcase Investment Advantages
The investment landscape is always complex for first-time investors. Fixed income options are safe, but they don’t get you any meaningful returns. Real estate is often out of reach because it requires big investment amounts.
Equity is your best bet to earn inflation-beating returns and create wealth over the long-term. Small case makes equity investing simpler and profitable.Smallcase is a curated basket of stocks based on a particular theme or model. Now, rather than investing in individual stocks, discover a smarter way to build your portfolio!
Starting with smallcase:
A smallcase is a portfolio of stocks, based on a specific model, theme or idea. A smallcase contains at the most 20 stocks. These points make a smallcase an effective way to invest in equities.
Smallcases can primarily be classified into four broad categories:
Thematic smallcases: These are portfolios that reflect a specific market theme or trend
Model-based smallcases: These are portfolios that are based on a particular fundamental or technical investment ratio such as dividends, zero debt, earnings growth, etc
Select smallcases: These are smallcases that cherry pick stocks from the other types of smallcases
Sector trackers: smallcases that have stocks of companies that belong to only one specific sector are called sector trackers
Few points to consider before investing in smallcase:
Don’t get influenced by returns alone: It is easy to filter smallcases by yearly returns and just pick the ones that are on top. But that may not always be the right choice for you. You should also pay attention to how well you relate to the idea behind the smallcase
Don’t invest in too many of the same type: Diversification is a major benefit of investing in smallcases, which should be in terms of market capitalisation, themes, sectors as well as investment
Don’t invest and forget: Stock investments, in any form, should be made for the long-term, but should be evaluated periodically as well. You should keep a periodic check on your smallcases to make sure they are on track