All you need to know about Smallcase | CA Rachana Ranade - YouTube

Hey folks!!! Rachana Ranade here and I welcome you  all to a very informative video about small cases  

I am sure whenever your friends or relative asks  you a question that have you invested in small  

case and if you say yes loads of questions will  be just fired at you like what are the charges?  

when you invest in small case? if you sell the  small case are there any separate charges? what  

are the charges when you want to rebalance the  small case? and you'll be like so that you have  

relevant answers to all these questions  that is the whole and sold reason why  

we are doing this video hope you enjoy this one. Let me remind you all one more time that all these  

creative people are spammers. That is how my  account looks like also remember I never give  

my mobile number in any chat I neither have an  advisory nor do I give any stock tips. So let's  

understand what are the charges involved while you  invest in a small case first of all whenever you  

want to invest in a small case you have to choose  a broker for the investment so there are multiple  

brokers with whom small case has a tie up I have  an account with Zerodha so I am going to tell you  

what charges will be involved if you are investing  in a small case through Zerodha so please pay  

attention here there are two sets two categories  two possibilities that your investment amount  

is less than four thousand or your investment  amount is greater than or equal to four thousand  

if I am talking about investment amount less than  four thousand assume that you want to invest in  

small case which wherein the amount involved  is just 2000 rupees so what will be our charges  

2000X2.5%+GST now if I do an investment for  3000 then 2.5 percent plus GST okay but if your  

investment is safe for rupees 10,000 then what  will be your charges it will be 100 rupees plus  

GST okay 100 so your no percentage is involved  it's a flat one time 100 plus GST what if you were  

to invest for 10 lakh still same 100 plus GST. I  hope charges while investing in a small case are  

absolutely clear now let's understand whether any  charges are involved while you sell a small case  

first understand logically whenever you're selling  a small case means what are you selling you're  

selling the stocks in your small case so are there  any charges? Answer is technically speaking No  

then what sort of charges are involved only  taxes okay so let me quickly tell you what will  

be the taxes which will be involved while you are  selling a small case assume that you have held it  

for less than or equal to one year okay in  that case you will be taxed as if it's an  

STCG which is a Short-term capital gain so you'll  be taxed at the rate of 15% okay automatically the  

colors change but I hope this is visible 15% and  if you are selling it after one year of buying it  

so a holding period is more than one year in that  case that will be like a LTCG and in that case you  

will be taxed at the rate of 10%. I hope this base  point is clear okay by the way 10 percent is taxed  

only if your LTCG is greater than rupees 1 lakh  okay so for one lakh up to rupees one lakh no need  

to pay any taxes if your LTCG is greater than one  lakh you have to pay ten percent tax what about  

dividend on small case? uh will you be eligible to  get dividend? Yes because finally you're investing  

in stocks only through small case so if the  company declares dividend then automatically  

you will also get dividend and whatever is the  tax on dividend same tax will be applicable even  

in this case I hope taxes on selling small  case even dividend aspect is again clear. 

Let's move on with one of the most frequently  asked questions about small case which is is  

rebalancing mandatory and if I choose to rebalance  then will the brokerage be charged separately or  

will it be included in the rebalancing charges  or the small case charges okay so just in case if  

you uh are a new person on my channel you might  be like how is this Rachana she didn't explain  

what's a small case she didn't explain that it's  a basket and all that she directly started with  

the charges i have assumed that all those who are  watching this video are pro and they just want to  

clarify some high level doubts that's why they  are watching this video okay but just in case  

if you are a newbie, if you're starting your very  first investment in small case next one one and a  

half minute is very important for you okay that's  where you'll understand the concept of small case  

once you understand that then understanding the  concept of rebalancing will be very easy okay. Now  

let's understand small case in a very practical  manner right so what I have done I have gone to  

small case I have done my login okay and here  whenever you land on this page just click on  

discover once you click on discover click all  small cases now once you click here you will  

see so many small cases on the screen now what  is this I will give you a simple example assume  

that you are a newbie you don't understand how  to analyze a single stock based on fundamental  

and technical analysis but you know that's your  thought process that electric vehicles is the  

future okay that's what you believe so it will be  such an amazing thing for you if someone creates a  

basket of stocks wherein only those stocks are  included which are based on the electric vehicle  

theme, okay so what is this small case this  small case electric mobility is nothing but  

a basket of stocks which is absolutely related  only to a single theme single theme of what  

electric vehicles if you just click on this stocks  and weights you will see Amara Raja batteries,  

Endurance technologies, Mothersons all these are  related to the same theme. Now if you want to  

know that who has made this basket did I make  it? No so for that just click on overview and  

here you can see that this has been created by  windmill capital but then again one more question  

I am sure is there in your mind that who all can  create this small cases right so for that I have  

again gone to the home page of smallcase.com I am  just scrolling down and once you scroll down you  

can see that all these small cases are curated by  India's top investment managers these are leading  

professionals who are SEBI licensed research  analysts and investment advisors so if you  

just click on view all managers you will see an  entire list of all those people who have created  

the small case in fact it also talks about how  many small cases these guys manage so for example  

windmill capital is managing 43 small cases  so assume in the electric mobility small case  

windmill capital can say that we want to replace  these two stocks with these two new stocks what  

happened this is nothing but rebalancing of the  small case actually is it mandatory that you have  

to rebalance and if it is mandatory you will  be like at least take my permission no right  

so what what happens is that an email will be  sent to you you have to say accept or deny if  

you accept well and good rebalancing will be done  for you if you don't accept that's okay it is not  

mandatory okay number one. Number two are there  any charges involved in rebalancing from small  

case perspective no small case will not charge  you a fee for rebalancing but whenever rebalancing  

happens please understand it's ultimately as good  as you're selling stocks from your portfolio and  

you're buying new stocks in your portfolio so  are there going to be brokerage and other charges  

involved? Yes. I hope the rebalancing charges  brokerage charges this confusion is also clear. 

Moving on ahead with the next question what is the  minimum capital required for investing in small  

case and which brokers are affiliated with them  so uh I am sure everyone knows that if you want to  

invest in a mutual fund in majority of the mutual  funds minimum investment amount will be 500. There  

will be very select mutual funds where minimum  investment amount will be even 100 rupees okay  

so let's understand for small case do I have any  option of investing in a very limited amount so I  

am taking you to the website of small case right  so once I go to the website of small case again  

as usual let's hit the discover tab and then go  to all small cases once I do that on the left  

hand side you can see that I can filter the small  cases what filter am I using I am filtering with  

investment amount I am going to click on  investment under 5000 so once I click that I will  

be able to see which all small cases are there  with an investment amount less than 5000 equity  

and gold investment comes with a minimum amount  of just 270. Can this minimum investment amount  

change over a period of time? Yes okay you also  have an investment minimum investment amount of  

just 1015 or 4364. Links of all these small cases  are there in the description box so whenever you  

want to check this out you can do that right. So  I hope you have understood how to filter out small  

cases with low investment amount but I hope this  is also clear that there is no minimum investment  

amount as such okay now moving ahead with the next  question which brokers are affiliated with small  

case so here again i am on smallcase.com here you  can see that it is supported by a large number of  

India's brokers so here you can see these all  brokers have already tied up with a small case  

if I go and click on plus five okay this is the  entire list which is affiliated with small case. 

Let's move on with another interesting question  what is the difference between investing in a  

mutual fund versus small case. Before I talk about  differences first let's start with similarity  

both are managed by professionals in simple words  you don't have to have that headache of doing  

research and all who is going to do the headache  who is going to bear the headache professionals  

okay you just have to shell out the money right  then let's go on to the differences point the very  

first difference is ownership if you're investing  in a mutual fund what do you own? You own units  

of a mutual fund but if you're investing in a  small case what do you own you own stocks you own  

shares simple second point of difference is about  rebalancing if you remember I just told you right  

now if you're investing in a small case do you  have an option, permission right you can decide  

whether you have to go ahead with the rebalancing  or not but if you are investing in a mutual fund  

the fund manager is not going to ask you whether  salary balance or not do you want mutual fund  

manager will rebalance it for you okay you don't  have an option if I am talking about the tax and  

brokerage here this is a negative point for small  case what is the negative point I will tell you  

if you are investing in a mutual fund okay and  if the fund manager is doing the rebalancing  

okay fund manager decides I do not want these two  stocks I am going to remove it from the pool and  

I want I will go to add a few stocks in the pool  of investment okay are you going to be taxed for  

that no are you going to be charged any brokerage  for that? No of course it will be adjusted in  

the expense ratio agreed but no separate tax or  brokerage but if you're investing in a small case  

when rebalancing is done if you remember I just  told you a few minutes ago that actually new  

stocks will be purchased existing stocks will be  sold off so obviously brokerage will be charged  

and STGC or LTCG will be charged right. Moving on  to the next point of exit load okay so in a mutual  

fund generally there will be a lock-in period and  if you're selling the mutual funds units before  

the end of the lock-in period then you might be  charged an exit load but if I am talking about  

small case there's no concept of exit load right  and one important point is about ready-made themes  

and strategies so if you're investing in a mutual  fund what happens is there a thematic mutual fund?  

Answer is Yes. Why not but if I am talking about a  small case I will tell you how it is a little bit  

more customized okay so I can visualize something  like I have gone for shopping and I can you know  

do a mix and match I buy a kurta from here I buy  salwar from there I buy by dupatta from some other  

place right!! something like that so similarly  okay I want to choose a theme, theme based  

investing okay. First let me choose the investment  strategy um assume I go ahead with fundamental  

fundamental is my investment theme now I say that  I am okay I am a good risk taker so I am okay  

with high volatility so I am choosing my second  thing and I say that I have money so I can invest  

anything under 50,000 also now I have three, four  options and I can choose any of the small case I  

want of course what will I do? I will check how  much the CAGR and all that of course points have  

to be checked but here I had an option of choosing  the investment amount, of choosing the volatility  

and of choosing my investment strategy. Next  question is can I track small case on Zerodha app?  

answer is unfortunately No you can't track it on  the zero the app but you can track it on kite's  

web portal okay so just in case if you have not  understood the question itself for you just pay  

attention for next one minute whenever you buy any  any small case whenever you invest in any small  

case basically what are you buying you're buying  stocks where will these stocks get stored in your  

holding okay in your Demat account so assume that  you are having an account with Zerodha the stocks  

which are invested through small case will also  show up in the holding and stocks which you have  

directly invested through your own research that  will also show up in the holding tab only then  

how can you bifurcate? how can you track your own  investment returns versus returns through small  

case right so for that what you can do is just go  to the kite portal and just quickly show it to you  

yes so first go to the screen of your login  Zerodha login and enter your login credentials  

,then click continue 

once you do that go on to the holdings tab now  what you can do is here you can see a small drop  

down menu click on that drop down menu and choose  all stocks right, once you choose all stocks  

scroll down and here you can see the total  investment amount, total current value days,  

P&L, total P&L, just in case if you are feeling  that we got to know about Rachana this is not  

my account this is a dummy account okay. Now  what you can do is again scroll up again hit  

the drop down menu and that's where through  the drop down menu you can select small case,  

once you select small case again scroll down and  now what you see here is your total investment in  

small case, your current value days, P&L and  total P&L. So I hope you have understood how  

you can choose through the drop down menu  small case holding versus other holding. 

Let's move on with the next question as to how to  create a small case and for that I have already  

prepared this video so whenever time permits watch  this video not right now first focus on this video  

because a very important question is coming up  which is that some small cases have a subscribe  

tab subscribe button instead of an invest  button so what is the difference between  

these two and how to invest in those small cases  so I will show you practically how it looks like  

so just have a look at this okay so uh I am  going to show you two small cases this is not an  

advice to buy into these small cases not at all  only examples first one is Safe Haven here you  

can see the invest now button but if I take you  to Growth At Fair Price button here you will  

see subscribe now button okay now what is the  difference I will take you to a Safe Haven so  

for your in the invest now you can see stocks and  weight okay if I am clicking on stocks and weight  

I can see that which stocks are there how much is  the weightage everything I can understand okay but  

if I go to Growth At Fair Price and if I click  on stocks and wait I can not see anything okay so  

uh what will I have to see if I have to see which  stocks are a part of this growth at fair price for  

that I will have to click on start subscription.  Once I click that that's where I will get to know  

what are the benefits if I subscribe to a small  case then I will get access to high quality  

research by SEBI registered experts okay uh I can  also invest in one click I will be able to get  

regular updates rebalancing updates everything  if I am subscribing to this specific small case  

but wait one again question comes up in my mind  is that if I were to just subscribe to this uh  

small case and if I decide I don't want to invest  in it is that allowed? Yes I can just subscribe  

but opt not to invest in it also or if I want  I can subscribe and invest option is yours okay  

one more question comes is that why are they  charging this fee okay simple answer is that  

research analyst is doing some good, good level  of research for you so don't you think he he  

does have a right to charge something for his  expertise? Answer is Yes so this fee that he's  

charging you is decided by the manager and that's  only for providing you good quality research.  

So I hope you have gotten answers to a  lot of questions regarding small case  

but if you still have any other questions  regarding small case investment do feel free  

to post your questions in the comment section  below I will be happy to make a separate video  

answering all additional questions till then do  your own research take care, Jai Hind and bye  

bye.