smallcases are similar to mutual funds in concept, since they provide portfolio exposure to equities.
smallcases are baskets of stocks or ETFs that reflect an idea, theme or strategy.
However, unlike mutual funds, smallcases are:
- transparent & customizable (you buy the stocks into your account directly vs buying units of the fund)
- liquid (no lock-ins, value changes during the market hours)
- more cost effective (flat fees, no exit loads)
- can capture a lot more use-cases (GST, rural demand, increasing internet penetration, different strategies for growth, value, momentum, dividends etc)
We've a blog that talks about the differences in detail. You can head over here to take a look.