smallcase: Zerodha’s new bet for theme-based ideas

Tanya Thomas Mumbai | Updated on January 17, 2018

For retail investors keen on latching on to themes in the stock markets, a newly-launched financial tech start-up company, smallcase, may have what they’re looking for. The company is being incubated by Bengaluru-based discount broker Zerodha and its products are currently available only to Zerodha’s clients. 

smallcase creates baskets of stocks based on a theme or idea trending in the market and which has long-term value, such as stocks that would benefit after the Goods and Services Tax Bill is passed, consumption-based themes, or a portfolio of stocks that will benefit from the monsoon or the rising rural demand. Each of these portfolios is called a ‘smallcase’ and investors can buy a smallcase for a fee of ₹100 using their Zerodha brokerage accounts. 

Vasanth Kamath, co-Founder, smallcase, told BusinessLine, “We are making investing in stocks simple, safe and natural for first-time investors. Our concept makes it more relatable for investors to understand where they’re investing their money — at the same time, since a smallcase is a portfolio, this approach diversifies risks making it a better way to invest.”

5,000 users

Since their launch on July 13, smallcase has gained 5,000 registered users and 550 paying customers. The smallcases are rebalanced every quarter. The company has 44 smallcases active currently, of which the most popular are GST Opportunity, Magic Formula (a strategy portfolio based on Joel Greenblatt’s technique of value investing) and Growth at a Fair Price (reasonably priced high-growth companies with increased earnings).

Kamath said smallcase has begun talks with other brokerages to offer these products.

Published on August 01, 2016

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