Smallcase Review: Profitable Niche Investing or Another Money Pit?

Smallcase is helping investors to find and invest in the best stocks and ETFs via themes and ideas.

It’s quite a modern way to invest, as investors are afforded the flexibility to create portfolio niches according to whatever investment ideas they have.

But is Smallcase proving to be a profitable niche investing platform or is it just another money pit in disguise?

In this review, we’ll take a look at some of Smallcase’s features to ascertain if it’s a good platform for putting your money to work.

Let’s get started. 

What Is Smallcase All About?

Smallcase is simply a platform for curating stocks and ETFs around themes and niches.

With Smallcase, investors no longer have to go through the burden of finding and analyzing stocks based on their preferred criteria.

They simply have to rely on expert research and historic data on the Smallcase platform to find the right theme or niche where they want to invest.

Smallcases could be based on criteria such as volatility, minimum investment, industry, dividend availability, etc.

How Does Smallcase Make Money?

Smallcase make money by placing a markup on the stocks and ETFs on their platform. In essence, they charge a small fee to investors accessing smallcases on their platform.

There are also other charges and fees that are paid on a transaction-basis.

How To Invest In Smallcase

You can start investing on Smallcase by downloading their mobile app on the play store or App Store.

You could also login via the Smallcase website and start curating smallcases based on your investment criteria.

According to Smallcase, there is a smallcase for everyone, so it doesn’t matter what your investment preferences are. You’d probably find it on the Smallcase platform.

How Much ROI Does Smallcase Offer?

Unfortunately, Smallcase doesn’t offer any guaranteed ROI for investors. Smallcase only provides the platform for brokers and investors to thrive profitably.

Also, with the nature of stocks and ETFs, it would be very difficult to offer investors a guaranteed ROI, as stock market forces are not within the control of the brokers.

However, you could get a rough estimate of ROI for a smallcase based on historic performance, via the CAGR provided for each portfolio.

Is Smallcase Legit or Scam?

Since Smallcase is just a platform that facilitates brokers and investors transactions, and does not create new asset classes for investing, it could be legit.

According to the company, all smallcases on their platform are created and managed by registered research analysts and investment advisors under the auspices of the Securities and Exchange Board of India (SEBI).

It is however important to do your own due diligence before investing your money.

What I like About Smallcase

To be honest, I like a lot of things about Smallcase. Many of their platform features are well thought out and useful.

I like the fact that investors can build smallcases based on dividend-paying stocks and ETFs. This is very important for investors who are not just looking for capital gains but also cash flow.

The rebalance update is also a really good feature that helps investors keep up with changes applied to their smallcase portfolios. 

As an investor, you don’t want to be caught unawares due to a small change of terms in a stock or ETF you actively hold, so a review of changes and rebalancing your portfolio is really important.

Another one, the SIP feature is great for investors looking to invest periodically and with a structure. With the SIP, you could start small and build up a large portfolio over time by investing a specific amount on a weekly or monthly basis.

Finally, the index value tracking for each smallcase is a great one in terms of clarity. With the index value available for each smallcase, investors can easily track the performance of their portfolio and make changes if needed.

The ROI is simply tracked by checking for any increment of the original index value of 100%. In this case, an index value of 120% indicates a 20% profit.

Easy peasy right?

What I Dislike About Smallcase

Honestly, there are not a lot of things to hate about Smallcase. 

Well, except the fees. Everyone hates paying fees and there can be a lot of them when you start curating stocks and transacting on the Smallcase platform.

However, this is not much different with other comparable stock investing platforms that are available right now.

Can You Lose Money With Smallcase?

Unfortunately, there is a possibility.

There are no guarantees when it comes to investing in the stock market, no matter what avenues or platform an investor takes to access the market.

Even Smallcase admits that investing in stocks are subject to market risks, and investors should consider all risk factors and even seek professional financial advice before investing.

So, there is always a possibility that you’d lose all your investment.

Should You Invest With Smallcase?

The question is, why not?

The stock market, even though quite risky, has proven to be a legitimate way to invest both in the short and long term.

Also, there is not much difference between investing with Smallcase and your regular stock broker.

Well, except that Small Case provides the ease to build portfolios around themes and to track and measure them accurately.


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