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Small Case क्या है, कैसे काम करता है? - Smallcase Investment Review, Charges, Rebalancing in 2021 - YouTube
Channel: Asset Yogi
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Friends we did a video earlier,
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In which we discussed the top five Small cases under 5,000. rupees.
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But in that video, we got a lot of query, many requests,
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many people said that we do not even know the Small case
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what kind of investment option is this,
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Many people requested us to make a detailed tutorial on it.
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So in this video we are going to do the same
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now see if we want to invest in stocks then
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what are the options we have in today's date.
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There are only two options,
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first, we can invest directly in the stocks
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and the other can be done through Mutual funds.
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Small case comes a third and very good option,
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so first of all we will see what are the advantages and
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disadvantages of Stocks and Mutual funds.
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We will talk about the advantages and disadvantages
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of how a small case can add value here.
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Then we will understand what is a Small case,
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how small is designed,
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and then a question always comes in the mind of people
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that if a product is good, then perhaps its pricing will be high,
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then we will also talk about it, We will talk about it's charges,
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In fact, they have a new update,
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their premium subscription services have also started,
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what is that, we are going to talk about that too.
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After this, we will see a live demo that
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if we want to invest in Small case,
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then we will see how to select Small cases and how to make your strategy.
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Finally, we will also see what is Rebalancing,
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Now I couldn't find all these details in any blog or video,
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so I thought, that I must make a detail tutorial on small case,
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in this video we are going to cover A to Z of small case,
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it will be very interesting, Stay tuned.
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Friends, if you want to learn a little more detail about the stock market
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and mutual funds, then you can follow our playlist,
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Master Investment Series, Mutual Fund Series and many more, we have a lot of playlists,
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All the links can be found in the description below.
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Let us first look at the advantages and disadvantages
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of direct stock Investing and Mutual funds.
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If we talk about direct stock investing first,
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then when we invest there we have an expectation
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that the number of returns Nifty or Sensex is giving,
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then we must get more returns then that,
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if we take an example,
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That on the average Annual return of nifty in last 10 years has been 14%
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so we should earn at least 15 to 20 percent here,
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So, if we have the expectation of such high returns,
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then we will have to work extra hard for that,
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it means, that our expertise should be a little more,
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now, along with Expertise, we should also have active involvement in it.
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That, this is an active investment
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where we have to invest our time too.
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So if we put our effort and time,
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then obviously we are benefitted here.
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We can get better returns and secondly,
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that we do not have to pay any fees,
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like we have to pay some fees in mutual funds
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and along with this the control remains in our hands,
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as to we have complete control over
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which stocks to invest, when not to invest, when to sell.
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So, this was all about direct stocks.
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Now let's talk about Mutual funds.
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In Mutual Funds, if we talk about returns,
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then there you will see that on average,
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there are fewer returns than Nifty, 90% of mutual funds.
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So if we go by our old example,
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if suppose Nifty has given average annual returns of 14% in last 10 years,
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then in mutual funds, you won't get returns of more than 12 to 13 percent,
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And why is this, so it's because of two reasons,
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firstly, because mutual funds always ask for some fees,
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which we call Expense ratio.
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it's around 1 to 2 %.
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then it will be deducted from your returns
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second, There is also an inherent downside to mutual funds
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that they cannot hold as much Cash.
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SEBI's requirements are such that they have to invest most of the money in the market,
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they can hold only a little money in it
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and that too for liquidity,
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if someone withdraws money from mutual funds,
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then only for that cash is held,
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So, because of these two reasons, the returns of mutual funds,
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if we invest money in direct stocks, then our expectation is a little less than that,
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but on the other hand, it is also an advantage,
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we do not need any expertise in mutual funds.
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someone is managing our fund,
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and he is charging 2-3%for that,
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then there is no requirement of expertise here.
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Second, this is not an active involvement here,
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that is, you don't even have to spend your time here,
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but along with this, it is also a drawback
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that it is not in our hands like we do not have control over these investments
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Only the manager will decide when to sell the stocks,
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which ones to buy, how many to sell,
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you have no control, you have given him money
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and he will manage your money
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and the second drawback is we have already talked
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that here your fees are more.
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Your expense ratio is up to 1 to 2 %.
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So, this was about direct stocks and mutual funds.
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Somewhere between these two comes Small cases,
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so if we want to understand this, then we go by comparing it with mutual funds,
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suppose you have given money to a fund manager.
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Now what will he do, suppose he has invested your money in 20 stocks,
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what he's doing, eventually he is putting your money in a portfolio
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Money is being felt in a portfolio,
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he is charging you 1-2% for that thing,
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now suppose an expert of the same method, coming to you and saying
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that I am telling you a direct portfolio, you buy stocks yourself,
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and I will charge you very little money for that thing,
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now, mutual funds cost a lot but
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on the other hand, an expert comes, And he says that my qualification is the same,
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I am a SEBI registered investment advisor,
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and I will design a very good portfolio for you
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and if you want, you can compare its returns with Nifty,
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we are confident that with our strategy, we can best Nifty every year,
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if Nifty is giving you 14% then in our portfolio you can get returns up to 17,18 or 20%
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So if we go to the parameters of our old comparison,
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what can we expect in the Small case,
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here, we can expect a return of 15 to 20 %.
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Like we are expecting in direct stock
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secondly, here also you do not need any special expertise,
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here, you have an expert and you can copy his portfolio.
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Third, your involvement here will be a little more than your mutual fund.
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But it will be very less than direct stocks,
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you will not need to do much research,
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so in this way we get a lot of control
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which we do not get in mutual funds
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because all the stocks are included directly in your Demat account.
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So you can buy them whenever you want, you can sell them whenever you want,
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you can also rebalance in the way the expert is advising you.
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we will talk about this very soon,
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and if we talk about the final parameter,
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then like we talked about earlier, here our fees very less,
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so if I summarize this,
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then the Small case is a model portfolio,
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which was made by an expert.
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Which you can directly copy in your Demat account,
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you can copy its strategy directly
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and for that you incur very nominal charges.
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Now the question arises that in what way these Small cases are designed,
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and what options we have,
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see the way mutual funds are designed,
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Small cases can be designed in the same way.
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So if we want to surprise here how Small case designed,
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Small cases are designed on ideas, on themes, or on strategies,
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then any expert who is designing it, what stratefy is he using?
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they tell you upfront that this is the strategy we've designed it,
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Now let's talk about the charges, how much does the Small case charges?
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See, till now it was charging very simple
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whenever you buy a Small case transaction, you were charged only 100 rupees,
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but now Small case has a premium subscription,
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For their premium Small cases, you are paying a one-time fee,
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you can check all the stocks in it.
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So here, Windmill Capital is a sister company of Small Cases,
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that has made more than 42 Small cases,
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so when you take this premium subscription,
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then, you can check all your small cases,
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that is, how many stocks are there in them. What is the weightage,
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you can see all those stocks,
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then if you want to buy,
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then you can buy those stocks even in your Demat account,
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otherwise, their small cases as soon as you click on the invest button.
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Even then it will come in your Demat account.
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All such small cases and premium small cases,
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we will also see a demo of it,
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how you can select these Small cases,
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So, to explore these small cases, I have given the links in the description below,
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If you click on the link, then you will see a page something like this,
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we will first log in here,
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so whoever your broker is,
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they have tie up with all these brokers,
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whoever broker you have an account with, you can log in through them.
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for example, if I want login through Zerodha,
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then I will enter my username here, I will enter my password
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and I will enter my PIN, after login,
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we will get to see some page like this
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But look, you see different collections,
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you can come down here and see what kind of collection are there,
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there are some small cases for new investors
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there are ETF small cases, ETF means exchange traded fund
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so these are very low cost funds,
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like in Mutual funds your expense ratio is high
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here expense ratio is very low,
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and you can invest in different instruments.
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Like you can put some money in debt,
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some money can be put in equity, some can be put in gold,
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then you get small case of ETF too,
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it's showing 6 Small cases here,
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there are some small cases for long term.
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There are sector trackers like any specific sector you want to invest in
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if you want to invest in any business house small case .
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there may be a small case of Tata House,
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So, these types of themes are there for you,
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here you can go in All Small cases,
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here you will get all the small cases,
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here you can apply filter on investment amount
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if you want to select under 5,000,
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if you want under 25,000 or according to how much minimum investment we want to do,
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we can select here,
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according to Volatility, you can select small cases here,
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Some small cases can be highly volatile as in
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if they have too many stocks that go up and down a lot,
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they will be high volatile small cases.
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On the other hand, if there is a balance small case in which
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it has good portions of Debt and Gold,
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then its volatility will be very less
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i.e. it will continue to grow slowly and steady.
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but usually, its returns will be slightly less.
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So according to this we can also select it
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can also select according to the launch date,
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but the most important is the investment strategy here,
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according to me, you must know this very well
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like if you are investing strategy according to the asset allocation.
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If you want to select small cases, then you will click on it,
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then you will see some small cases here
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like this is equity and gold,
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then here the asset allocation will go in equity and gold.
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All-weather investing, here investing will be in every way,
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some money will go in gold, some money will go under debt,
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some will go in equity.
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then, there are Top100 stocks in which some of your money goes in Nifty 50,
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the rest some money goes in Nifty Next 50,
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So in this way you can select it.
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then you can invest in dividend paying in small cases,
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so these small cases you are seeing here,
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stocks with very high dividends are selected in them.
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ESG can be a theme .
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ESG such as the companies which focuses within Environment Sustainability All Governance,
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the companies that try to reduce their carbon footprint
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what kind of small cases are available for such companies, you can see that here,
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then there can be fundamental's, if we remove them,
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what are the small cases for the long term, you can see that in fundamental,
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you can see here the height for growth small case,
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you can see high quality stocks and quantamental means
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Some small cases are made by mixing quantitative and fundamentals.
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then, there is Sector tracker, if you want to put in IT, Auto, or Banking,
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Technically i.e. trading wise there are some small cases
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some stocks are selected for short terms,
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then Thematic investment can be done, if we remove for fundamentals,
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like Banking Privately Transporting India i.e.
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the stocks which focus on the transporting sector of India
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can be something hat way, Affordable housing can be a theme,
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then we have some small cases for value investment
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so in this way, we can select our small case according to the investment strategy.
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Let us now see what type of details we get here,
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Suppose we want to invest within growth,
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want to see the small cases of growth,
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then see here we are getting a small case of growth and income,
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suppose we want to invest in it, then I will click on it,
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so, here we can see they are showing methodology first,
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in which way this small case has been made
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i.e. here some growth stocks have been added here,
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and some companies which pays dividend very well are added here,
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the performance you can see here,
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because there are more small cap stocks,
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So, it is comparing with Equity Small cap
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here what we can do, we can compare with Equity FD & Inflation compare,
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So, see the average return given in this small case is 38.79%,
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this is very good returns
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as compared to the average returns of equity which have been only 14%.
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We have given 6.6 % in fixed deposits
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and our inflation has been 4.19%
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so you can see here, returns are very good here,
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so if we want to invest in it
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then we can directly click on the button on Invest Now,
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and we can invest in it.
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And after all, who has created this small case,
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that too is mentioned here, created by windmill capital
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which is a subsidiary of small case.
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Now here if we go into its stocks and weights,
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then you can see all the stocks and how much percentage,
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will our money be invested, if we click on Invest NOw,
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You can see it's 5 years CAGR,
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The annual return of 5 years is up to 24%.
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So here we have seen an example
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where we can easily see the stocks and weights here.
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Windmill Capital, which we talked about earlier, has more than 42 small cases.
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So let us now look at another example,
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and see whether the stocks are visible to us or not.
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Let's go back to Discover Small cases and here we come to All Small cases,
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and let's say I want to invest in specialty chemicals,
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here in Pharma I think that might be a good theme,
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this is also Windmill Capital's small case
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let's click here,
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If here, I want to check stocks and weights,
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so first of all it is telling me start subscription,
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That means, its stocks and weights are not visible to me,
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this is not a free small case here we will have to buy a subscription,
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so, what kind of plans we get here,
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we can see here in See all plans and benefits.
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Look, all the small cases we have from Windmill Capital,
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for that, we have to pay one time payment and how much,
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we have to pay 6,000 for 1 year.
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After that, all the small cases, all the portfolios available here, will be visible to us.
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Why did they do this, it is clearly understandable,
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That many people directly see the stock and their weights and
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can directly copy them in their Demat account,
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so that's why they have bundled all the premium small cases under one premium subscription.
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Although even after that I don't think it is too much cost for 1 year
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if we are giving ₹ 6000 then it takes around ₹ 500 a month,
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along with this, you get a lot of small cases,
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in whichever theme you want to invest money you can,
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then it is a matter of fact that we will come to know all the small cases
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that where we must to invest,
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the second important thing is Rebalance Updates.
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I would like to talk to you now about, Rebalancing is very important.
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Why because when we wanted to buy small case then we bought them,
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but when we must sell them, we should also know that.
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So the meaning of rebalancing is same,
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in whatever small case you are investing in, you can get quarterly updates,
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like those which are very long-term,
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you get quarterly updates in that,
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that means you will get Rebalancing update within 3 months on Small case application.
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So at that time you definitely have to rebalance,
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as soon as you click on rebalancing, all the stocks
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that have to be sold will be sold
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and the number of stocks that have to be bought extra
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or if weightages have to be increased, it will increase within a single click.
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So, rebalancing becomes very important because any investment expert
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the investment advisor is constantly tracking the market,
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he is telling you through rebalancing that now you must sell some stocks
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and some stocks should be bought all and their weightage can change,
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It's done with a single click.
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and whenever we see the returns in the small case,
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The Annualized Returns we see here,
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are done by factorizing Rebalancing, that's why
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whenever you buy a small case, you must do rebalancing in it.
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Whenever we get an update
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and all the small cases with a short term,
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then you can get weekly updates in them,
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you can get weekly or monthly,
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so this was our small case detailed tutorial,
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I have tried to cover all the details here for you.
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Small Case, I think it is a very good product because here we can get the same returns
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as we get in direct stocks, along with an expert's advice,
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we don't have put much time here,
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we get this advice for very little money.
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then I would like you to tell your friends and family members about this product,
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you can share this video
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and if you have already tried the small case, how was your experience?
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Tell me in the comment section below
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In fact, it will be helpful for many subscribers.
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if you have any other suggestion related to this video or related to the channel,
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then you can share them in the comment section below
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and if you have not subscribed this channel yet.
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By subscribing below, press the bell icon in your phone
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so that you will get notification of latest Finance videos,
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So see you in the next one such informative video.
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Till then keep learning, keep earning, and be happy as always.
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