What is Value Stocks Smallcase stock portfolios?
Value Stocks smallcase stock portfolio is a basket of stocks in a specified weighting scheme to reflect a certain objective (ideas, themes, strategies). A Value Stocks smallcase stock portfolio has a minimum of 8 stocks and a maximum of 18 stocks.
How is it different from stocks?
Investing in a basket of stocks gives you diversification benefits that minimize stock-specific risk. Instead of picking stocks, you can invest in ideas you believe in with research-backed portfolios that are tied to relatable themes.
Which Value Stocks smallcase stock portfolio should I invest in
Value Stocks smallcase stock portfolio works best when used for long-term investing. So ideally, you should be investing in a Value Stocks smallcase stock portfolio whose theme/strategy you think will do well in long run. Additionally, you can use risk labels assigned to Value Stocks smallcase stock portfolio to find one that suits your risk appetite.
Can I add or remove stocks myself?
With Value Stocks smallcase stock portfolio, you have complete flexiblity over your investments, so you can add or remove stocks anytime with the 'manage' option, though it is always suggested to go with the recommended stocks in a Value Stocks smallcase stock portfolio.
There are 2 trading platforms on zerodha – one for smallcase and another direct zerodha platform. Both can be accessed with the same id and password. When you are buying a Value Stocks smallcase stock portfolio, sell only through your smallcase trading platform and not directly through your zerodha trading platform.
Start an SIP to invest periodically
Once you have invested in a smallcase, you can safeguard your investments from market volatility by starting SIP to invest more regularly. When your SIP installment is due, you can confirm investing more in 2 clicks.
Do not sell stocks on broker platform
To ensure that your smallcase constituents are in sync with your holdings, please refrain from selling smallcase stocks on the direct trading platform of zerodha.There are 2 trading platforms on zerodha – one for smallcase and another direct zerodha platform. Both can be accessed with the same id and password. When you are buying a Value Stocks smallcase stock portfolio, sell only through your smallcase trading platform and not directly through your zerodha trading platform. Any sell orders placed directly on the zerodha trading platform won't reflect in your smallcase trading platform.The zerodha direct trading platform permits trading in individual stocks only while smallcase trading platform permits trading in stock portfolios or smallcases.
How is it different from mutual funds?
Unlike mutual funds, with smallcases you get:
- Trading Efficiency – Trading can be done online very simply and easily
- Transparency - See what’s inside the portfolio
- Full Ownership - You buy the stocks directly and they are in your demat account
What are the fees involved?
You pay a subscription fee for the Value Stocks smallcase stock portfolio to Value Stocks and a brokerage fee to the broker through whom you trade (any one of the 11 listed brokers)
How do I track my smallcases
You can track your Value Stocks smallcase stock portfolio on the smallcase trading platform. Just login and check the dashboard.
Are there any lock in periods?
There are no lock-in periods, so you may sell your smallcases anytime. As a concept however, smallcases work best when used for long-term investing.
Rebalance your Value Stocks smallcase stock portfolio regularly
Rebalancing is the process of ensuring the stocks & weights of the smallcase continue to be true to the underlying idea/strategy. The smallcases will be rebalanced on predefined dates – For Annual Value Stocks smallcase stock portfolio, rebalancing is done once a year on 6 June. For Quarterly Value Stocks smallcase stock portfolio, its done 4 times in a year – 20 Feb,6 June,20 Aug & 20 Nov. You will be getting rebalancing update on your email as well on the login screen. This rebalancing of stocks will be done in your account where the old stocks will be sold off and new bought with given quantity.
Don't let emotion drive investment decisions
You can assess how the theme that you have invested in is playing out and reap its benefits only when you stay invested for a long term. It's best to not base investment decisions on short-term fluctuations. You can invest in Value Stocks smallcase stock portfolios as per holding period also – Quarterly or Annually.
