Top 5 Smallcase Investments under ₹5,000 - A Quick Review - YouTube

Friends, we got many of your comments requesting a video on smallcase.

On one side, we did a stock market-related Master Investor Series

Where you'll get many videos and the playlist is available for free, so you can watch

On the other side, we also made a playlist on Mutual Funds, where we invest indirectly in the stock market

So what is this small case?

If we have an option to directly invest in the stocks and if we can invest indirectly in mutual funds and ETF's

Then what is the need for smallcase?

It is also a stock market-related product where we invest indirectly in the stocks

Here also, you don't need to put a lot of time, research, and analysis

Then what is the advantage of smallcase and why is it so much popular?

We'll definitely discuss this in this video.

Along with this, how to start in smallcase, that means

Many people have this concern that they don't want to put more money in the starting and just want to try

That's why we bought the top 5 such smallcases where you can start with less than Rs. 5,000

This video is going to be interesting

You'll learn many new things so stay tuned with this video

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I am assuming that you might know something about smallcase

You might have watched some videos already

But if you don't have any idea about it, then let me know in the comment section

We can also do a detailed video on it.

But still, let's briefly discuss what is smallcase

As I already said, a small case is a middle path between the stock market and mutual funds

So if we directly invest in the stocks, we need expertise, knowledge

We need to put time into that and we should have an understanding of finance

But everyone cannot do this or don't have this much time

So we have Mutual Funds option

In this, we give money to a fund manager, they have a whole team

They do the whole analysis, stock research and then invest in it

But since they're maintaining a whole team, they have their expenses

And those expenses will be deducted from our returns

And how much is this costing?

We can easily assume 2-2.5% annual charges

And many mutual funds even consist of Exit Load which means, some charges are deducted while selling

So we have a middle option that is smallcase

Where it's not needed to track the market regularly

And there are no mutual funds expenses also

That means if someone made a portfolio after applying some good strategies

Then we can directly copy their strategies

So with a click of a button, we can also buy those shares in that portion

So these are the 2 big advantages of smallcase

That we don't need to pay for the expenses like in the mutual funds

And on the other side, control is in our hands just like in the stock market

So we can buy/sell these portfolios of stocks whenever we want

So we discussed the advantages of smallcase, now let's discuss how to start

D-mat account is not necessary when we invest in the mutual funds

But it is a must if we invest in the stocks

Hence, a D-mat account is a must in smallcase as well

Because even if you're copying anyone's strategy,

Those stocks will be transferred to an account, and that will be a D-mat account.

That's why, if you don't have a D-mat account, then I would recommend you to open one

And open an account with a discount broker

There are Zerodha, Upstox, Angel broking and all these are good discount brokers

Where they charge 0 brokerages on investing in stocks

The links to all these are in the description

I am assuming that you have a D-mat account

After that, download the Smallcase app. It is available on ios as well as on android

Firstly, you'll get 'login now' option

Then you'll see all the brokers with whom they have tie-ups

For example, I have an account on Zerodha, so let me login with that

I logged in and clicked on 'continue'

You'll be logged in here when you'll enter the id and password of your D-mat account

Let me type my Id, password, and PIN so that the smallcase app will open up

So let's talk about the top 5 smallcases where we can start with less amount also, i.e with less than Rs.5,000

So let's talk about the first smallcase that is 'Top 100 Stocks'

You'll get the individual links to all the smallcases I'll be discussing in the description

So you can check them out

If we look at the overview of the Top 100 stocks, it's very simple

They invest in the top 100 companies of NIFTY on the basis of market cap

And how is its performance?

Whenever we're checking out a smallcase, we can compare its performance with SENSEX or NIFTY

That means where the overall index or market is heading

So the smallcase should at least beat that index or market, then only we should invest in that

So as we can see, if we compare it with equity large-cap

So it is beating this

This small case was launched in January 2019 and you can see the returns after that

As you can see this smallcase is beating the yellow coloured line which is the NIFTY50 index

Now it is very simple to invest in this, you can simply click on the 'Invest Now' button

So their strategies will get copied

We can also check that where it invests

So as we can see, the investment amount is very less and the minimum amount is Rs.915 only.

Now let's see where it invests

They are mainly investing in ETF's (Exchange Traded Funds)

Where the expense ratio is very less in comparison with mutual funds

So it is investing 41.73% in Nippon India Junior Bees ETF

And 58% in Nifty 50 Bees ETF

That means it is investing 58% in the top Nifty 50 companies

And what is Junior Bees?

It is investing in the junior index of Nifty 50 which means

They are investing 41% in the Next 50 companies in Nifty.

So basically these ETF's will come in your account if you invest in these

And as we can see, the 2 years CAGR (Compounded Annual Growth Rate)

That means its annual returns are around 18%

It is a great return and as we saw it is beating the Sensex and Nifty.

So this was one, now let's talk about another one

These 5 small cases are not in a particular order

You can invest in each small case according to their strategy

Second, we have is 'Equity and Debt' smallcase

If you don't want to put all the money in equity or stocks

There are many mutual funds that are hybrid mutual funds

They invest some money in equity and some in debt

What are debts?

These are the Bonds, it may be public sector enterprises bonds, government bonds, corporate bonds.

So let's see how it invests and let's compare its returns

If we compare its returns with equity large-cap, it is beating it

This smallcase was launched in February 2021

But if we backtest it and see its previous returns, then you can see

That the blue line is always beating the yellow line

That means it is beating Nifty 50

And we can also compare the returns with equity, FD, and inflation

The average returns given by this smallcase are 11.92%

Returns in the case of Nifty were 10%, 7.5% in the case of FD, and inflation was 6.77%

So this is also beating Sensex and Nifty

It is showing only 5 months returns because it was launched recently

And the minimum investment amount is Rs. 2,819 which is very less.

Now, why is this investment amount less?

Because generally, the investments in ETF's and Mutual Funds start with just Rs. 500

That's why the minimum investment amount becomes less

But generally, the stock portfolio smallcases have a higher minimum investment amount

The starting is generally with Rs. 10-15 thousand.

But if you want to test out the product then you can do it

And if you want to invest in smallcases with stocks also

And if you want me to make a video on it, then let me know in the comment section.

So this is one strategy in which we're investing in equity and debt together.

The 3rd smallcase is equity and gold

where we can do the combination of equity and gold

Why does anyone want to combine gold?

When the stock market falls badly due to some reason like it did last year

Like it did because of the Corona Virus and the markets were bottomed out till the end of march, i.e fell badly

At that time you might have seen that gold had a fast upside rally

So whenever the stock market crashes as this occurs, gold works as a hedge at that time

That means our risk decreases and portfolio balances out

The portfolio will not crash because of less exposure to equity

So let's see what are these weightages

They are investing 30% in gold through Nippon India Gold Bees ETF

And the weightage in Nifty 50 Bees ETF is around 70%

That means this money will be invested in the top companies of Nifty 50

So if we look at the returns and compare it then you can see here it is given with backtesting

They beat Nifty 50 completely in the past as well

However, it was launched in 2019.

And if you want to invest in this smallcase then the minimum investment amount is Rs.253

That means you can start with a very less investment amount

Now let's talk about the next smallcas that is All Weather Investing

All weather investing means it will protect you from big shocks

Even if the market fell badly, it will save you from deep shocks

That means it will invest your money in stocks, debt, i.e bonds and gold.

We'll see the weightages but before that, let's see how it beat Sensex and Nifty

As you can see it was launched in 2018

But if we backtest it, it had beat Sensex and Nifty

If we look at the average returns, then the average returns of 3 years are 13.17%, i.e 13% returns annually.

If we see the ETF's and their weightages

It is investing 30% in gold

It is investing 46% in equity in which there's a further breakup

It is investing 27% in the Junior Nifty and 19.5% in the Nifty 50

And it is investing 23.6% in debt ETF's

So basically, investing in this smallcase becomes a shock-proof investment

Now some people may be interested in investing in global opportunities

There are many USA based tech companies in which you can invest and there is a way to invest in them

We are talking about Global Opportunities smallcase

Firstly, let's look at their returns in comparison with Sensex and Nifty

As you can see in the backtesting, they've beaten Sensex and Nifty in last 10 years

And it is also a new product which was launched in 2021, so the history is of last 5 months

It gave returns of around 9% in last 5 months

The investment amount is Rs.1611, which is very less

If we talk about ETF's and weightages, 25% is invested in Junior Bees

25% in Nifty 50 which means, 50% of the money is invested in domestic, i.e Indian markets

And Nasdaq 100 ETF, which is the USA's stock exchange where mostly the tech companies are listed

They're investing in top 100 companies there whose weightage is around 50%

So because of that, the portfolio balances out

We get 50% exposure to the Indian market and 50% of USA based high growing tech companies

So these were the top 5 smallcases under Rs.5,000

Where you might have noticed that our money is invested through Exchange Traded Funds

And the minimum investment amount is very less here and that's why the minimum investment of smallcase also becomes very less.

But when we invest in smallcases of stocks, the minimum investment amount may be higher

Because there may be any stock whose value is Rs. 2,000-3,000 or more

And if 10 such stocks are bought, the minimum investment becomes obviously higher

However, all the smallcases are operated in the same way that I showed you in this video

But if you want me to make a video on stock related smallcases, then do let me know in the comments

And if you want a complete tutorial on smallcase, then do let me know that as well

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