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Smallcase 🆚 Direct Stock Investing



As a shareholder, you try to invest in a few companies that you understand and believe will do significant business in the future. This involves looking at key industries and screening the best companies among them.


However, when investing in this manner, the sample size of publicly traded companies from which to choose is quite large. Keeping up with industry and company news and deciding which stocks to buy can be a difficult task.


Investors must evaluate equities based on the return they provide and the risk they entail. Let's compare two approaches to achieving this: smallcase and direct stock investing.


What is a Smallcase?

  • With the smallcase platform, you can invest in a curated basket of stocks and ETFs. As a more diversified and affordable method of investing in the equity markets, it differs from conventional investment vehicles.

  • The majority of the top stock brokers have integrated Smallcases with their Demat accounts. After creating an account with a broker who is supported and connecting it to your Smallcase account, you can begin making investments in any Smallcase of your choosing.

  • The platform also provides a cheap way to invest, with some Smallcases charging a flat fee and others charging an annual fee of 2-3% with a minimum investment.

  • For example, Rupeeting has a flat-fee model that is independent of the investment amount. Which means, the more you invest, the less you spend!

Comparison

Smallcase

  • Actively management - Investments on smallcase are entrusted with reputable investment professionals who design unique investment structures and oversee the performance and returns of the investments. This aids in effective fund management and maximizing returns over the years.

  • Theme-based Investing - If you want to bet on a specific theme but are not sure which company is the best, Smallcase may be the solution for you. For instance, smallcase gives you the option to invest in the space if you want to focus on high-growth stocks as a theme but are unsure of which company to bet on.

  • Diversification - Since Smallcase is fundamentally a bundled investment, diversification is another quality of its. This implies that investments made in, let's say, a Smallcase of monopolies will be dispersed across various industries. The benchmark for what constitutes monopoly and other criteria will be decided by the fund manager.

Direct Stock Investing


Direct stock investing is best suited for investors who prefer to go it alone and do not require professional guidance. Understanding what you're buying, why you're buying it, and how the stock performs in comparison to the market and its competitors are all important.


The waves of the market will eat away at your returns if you don't time your investments correctly along with choosing the right companies.

  • Risk Tolerance - Due diligence, vigilance, and routine portfolio position monitoring are necessary when investing directly. It is appropriate for investors who are confident in their ability to assess risk and who are prepared to invest in more volatile environments.

  • High Risk equals High Returns - Direct investments are typically focused on generating high returns and are therefore better suited to advanced investors. You must be able to deal with the market volatility that comes with running your own portfolio. If seeing massive unrealized short-term losses in your Demat account does not turn your stomach, this type of investment may be for you.

  • Do your own homework - Investing directly requires more time and effort, but it allows you to control your own destiny. This may necessitate a significant amount of time, mental energy, and trust in your work.


Wrapping Up

Direct stock investing can be a demanding process that requires a significant amount of time and knowledge. The appeal of smallcase is that you can invest in a diversified portfolio of theme-based investments without having to conduct your own research or worry about the underlying constituents.

The intensive research work is done for you by Registered Investment Advisors like Rupeeting, which creates Smallcases, that will outperform the market. Check out our selection of Rupeeting Equity portfolios, curated by experts who have over 50 years of combined investment expertise and have overseen the management of over Rs. 50,000 crore.



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Alphaware Advisory Services Private Limited (Brand Name - Rupeeting) makes no warranties or representations, expressed or implied, on products and services offered through the platform. It accepts no liability for any damages or losses, however, caused in connection with the use of, or on the reliance of its advisory or related services. Past performance is not indicative of future returns. Please consider your investment requirements, risk tolerance, goals, time horizon, risk and reward appetite, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. Performance and returns of any investment portfolio can neither be predicted nor guaranteed. Investments in mutual funds, stocks, ETFs and any other investment products that you see Rupeeting's views being expressed on are subject to market risks. Please read all scheme related documents carefully. The content and data available in the material prepared by the company and on the website of the company, including but not limited to index value, return numbers and rationale are for information and illustration purposes only. Charts and performance numbers do not include the impact of transaction fee and other related costs. Past performance does not guarantee future returns and performances of the portfolios are subject to market risk. The information is only for consumption by the client and such material should not be redistributed. Data used for calculation of historical returns and other information is provided by exchange approved third party vendors and has neither been audited nor validated by the Company. Detailed return calculation methodology is available here. Detailed volatility calculation methodology is available here. Registration granted by SEBI, membership of BASL and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Alphaware Advisory Services Private Limited [SEBI RIA Registration No: INA000015747] [Validity of registration: February 08, 2021-Perpetual] [BASL ID: 1610] [Address: 22/A Shah Industrial Estate, Off Veera Desai Road, Andheri West, Mumbai 400053] [Principal Officer details: Mr. Sagar Lele, Email id: sagar.lele@rupeeting.com, Contact No. +91-9769770046] [Compliance Officer details: Mr. Sagar Lele, Email id: sagar.lele@rupeeting.com, Contact No. +91-9769770046] [Grievance Officer details: Mr. Sagar Lele, Email id: sagar.lele@rupeeting.com, Contact No. +91-9769770046] [Platform Partner: smallcase] [CIN – U74999MH2019PTC320573] [GST No: 27AARCA8847R1ZF] [SEBI regional address: SEBI Bhavan BKC, Plot No. C4-A, 'G' Block, Bandra-Kurla Complex, Bandra (East), Mumbai, Maharashtra, India, Pin Code – 400051.]

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