A smallcase is a portfolio of up to 50 stocks/ETFs that reflect an established investment strategy/model or a relatable idea. They are based on new government initiatives like Digital India or Smart Cities Project, specific sectors or simply an investment strategy based on fundamental criteria like earnings growth or dividends.
For example, Affordable Housing is a thematic smallcase consisting of companies participating in and benefiting from affordable housing projects
Each smallcase has a unique rationale and other metrics to give you a comprehensive picture of the smallcase. They are as follows:
Index Value: Every smallcase's index starts from 100 on the inception date and represents the absolute returns generated by the smallcase since its inception. For Affordable Housing, an index value of 316.37 tells that it has generated a return of 216.37% since its inception.
To view the inception date of a smallcase, tap on the index value.
CAGR Value: The Compounded Annual Growth Rate for a smallcase represents the average annual returns since inception.
The CAGR is always calculated from the inception date to the current date. For example, if you had invested in a smallcase (with CAGR is 32.07%) on the inception date (say, Mar 3, 2014), on an average, your investment would have grown by 32.07% each year until the present date.
Rationale: Each smallcase has a sound rationale & reasoning for why it was created and why you should invest in it. This section gives you an idea on the kind of stocks that are included in a smallcase to aid you in assessing if a smallcase is the right fit for you.
Minimum Amount: It suggests the minimum amount required to achieve the prescribed weighting scheme of the smallcase. To maintain prescribed weighting scheme of the Affordable Housing smallcase, a minimum of ₹21642 needs to be invested. This amount changes in real-time based on the current prices of the stocks in the smallcase
Past Performance of the smallcase: You would be able to view the Past Performance of the smallcase for the duration such as 1 Month, 6 Months, 1 Year, 2 Year, 3 Year, 4 years & Max. The returns that we shown are the historical returns based of the stocks/ETFs present in the smallcase and this includes the rebalance updates as well as any losses incurred.
The SIP chart shows you the returns from inception on how your investment of Rs.100 every month to the smallcase would have given the returns for now.
You can also view the news associated with the smallcase and its constituents ie., stocks in the news field.
Finding a smallcase for you
You can find the smallcase that’s right for you on the Discover tab using various collections or by filtering & sorting through smallcases. To read more on this, you can refer to this help article on the Discover tab