Why Direct Stock Investors Should Invest in Smallcases

smallcases vs stocks

(This article was first published on Making Smalltalk.)

If there is one thing that can be said about direct stock investors, it is that they are certainly not averse to risks. Someone who invests directly in stocks does so with the understanding that the stock markets are going to be volatile. There will be bad days along with the good days, but as long as the good ones outnumber the bad ones, the investor would consider himself or herself to be successful.

Direct stock investors embrace market volatility and take investment decisions based on these ups and downs. But there are a number of reasons why direct stock investors would also benefit by investing in smallcases.

Portfolio-based investing

Investing in a portfolio of stocks has proven to be more beneficial than investing in 1 or 2 stocks. A portfolio allows you to diversify across market segments and capitalizations. Not only do you benefit from the upside in different stocks, but a portfolio also allows you to stay protected from the downside in a particular stock.

Investing in readymade themes & strategies

Direct stock investors follow the news and purchase stocks of companies that they believe will do well. This can easily be done when investing in individual stocks, but not when an investor is following a theme or an investing strategy. After all, tracking news & updates for more than 10-15 stocks is time-consuming. A smallcase will allow you to invest in ready-made themes & investing strategies that have been created by SEBI licensed professionals. For example, if you want to invest in companies that own brands which India loves, we have the Brand Value smallcase.

Or, if you want to invest in companies that stand to benefit from increasing rural consumption – we have the Rising Rural Demand smallcase. All you have to do is invest in 1-click.

Apart from these, we also have Sector Tracker smallcases, which aim to track & invest in particular sectors of the Indian economy. And lastly, there are Smart Beta smallcases, which are large-cap focused strategies that aim to beat the Nifty – to learn more about smart beta investing, read this blogpost.

Research and analysis by experts

One of the biggest hurdles for stock investors is taking the time and effort out to research stocks. Fundamental analysis of companies is an important step before buying its stocks. This, of course, is not easy to do and can take away a lot of the investor’s resources. But not if you invest in a smallcase. The hard work is done for you by the smallcase team of researchers and analysts. The stocks in every smallcase pass our stringent proprietary filters so that investors don’t have to worry about making the individual choices.

Investing in smallcases comes with many other benefits. They are transparent, customisable and straight-forward.

smallcases come in different types–thematic/sectoral, model-based, asset-allocation based, and those based on smart beta. Check them out and begin investing in the ideas you believe in. And if you still haven’t found a smallcase that’s right for you, remember that you can always create one yourself very easily! Add the stocks that you have in mind, see a simple-backtest before investing, and then conveniently buy/sell all stocks in 1-click – learn more about the create a smallcase feature here.

Leave a Comment

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply