Since its launch, it has consistently been among the most popular and best-performing smallcases. We believe Capitalmind Momentum, Capitalmind Low Vol and Capitalmind Focused are the best smallcases you can invest in 2024 for long-term wealth-building. But that doesn't mean they are right for you.
What are the Disadvantages of Smallcase? The main disadvantages of Smallcase investments include higher initial investment amounts compared to mutual funds, potentially higher subscription costs, and the need for active management and monitoring.
While Smallcases are generally cost-effective, they do come with additional transaction and management fees. These fees can vary depending on the portfolio and the platform, potentially impacting net returns.
Yes, small cap mfs are good on long term investment. 20 years time period is considered as a appropriate view on smallcap investment. That is because smallcap mfs are normally aggressive in nature. Once volatility will come, the first customer which will jump first to fire it will smallcap.
Most investors think smaller companies underperform in a recession. In most cases, they are correct. However, what's less well-known is that small caps usually exit recessions quicker than assumed – outperforming large caps. This rebound can begin as early as three months into an economic downturn.
With small-cap mutual funds, always opt to invest for the long Term. Therefore, the minimum period for which you should be investing in small-cap mutual funds is 5-6 years. As mentioned earlier, small-cap mutual funds tend to be very volatile. For example, they may go up and down in the short Term.
Smallcases can have higher return volatility due to the concentrated holdings. Mutual funds can have lower return volatility due to diversification. Smallcases can have higher risk due to the concentrated holdings. Mutual funds can have lower risk due to diversification.
Smallcases are available to all customers with an Online account with Kotak Securities, including NRIs. Kotak Neo customers can also access smallcases through the Neo platform. Customers who have an Offline account with Kotak Securities will be unable to subscribe to smallcases.
smallcase is backed by Rainmatter Capital, which in turn is backed by Zerodha, which also incubated the startup.
All smallcases offered on the platform (including the smallcase app) are created by SEBI-registered investment professionals. This ensures that smallcases adhere to the regulatory guidelines, and the end-user benefits from the expertise of the licensed investment professionals.
Applying rebalance updates isn't mandatory so you may skip them. However, if you skip the update, the composition & returns for your smallcase may vary from the original.
You invest in a smallcase by using funds in your broker account. You can either start a SIP or do a lump-sum investment. All invested smallcase constituents will be added to your Demat account. You can track your invested smallcase's performance, and dividends and evaluate your portfolio under Investments.
You can choose to exit completely or partially from your smallcases. You can also sell individual stocks if you want.
Can a Person of Indian Origin (PIO) or Overseas Citizen of India (OCI) invest in shares of companies listed on the Indian stock market? Yes, PIOs and OCIs have the same rights and limitations as NRIs in terms of investment opportunities in the Indian stock market.
Like with all smallcases, you can choose to invest or start an SIP in your subscribed smallcase at any point in time. You can also choose to add, edit, or remove any stock/ETF from your smallcase at any time.
-Small-cap is known for its volatility or sharp price fluctuations leading to greater uncertainty and risk for investors. Moreover, they also have liquidity concerns, limited resources and stability, and higher rates of failure.
While ETFs have lower expense ratios, they do come with higher trading costs. Additionally, investors need a demat account to trade ETFs, as they are handled like regular stocks. Investors can open a demat account with a smallcase!
However, numerous small-cap stocks do not have the capacity to handle exceptionally large trading volumes. In other words, small-cap stocks can face liquidity constraints. Small Cap Mutual Funds also find it challenging to invest the inflows worth crores they are getting each month amid stretched valuations.
Smallcase investments have a much higher risk in comparison to mutual funds. Smallcases are not highly diversified, and the portfolio adopts no hedging strategies.
Kotak Small Cap Fund and Axis Small Cap Fund gave 29.08% and 28.43% returns respectively in 2024. Quant Small Cap Fund offered a 28.34% return in the mentioned period. Franklin India Smaller Cos Fund gave a 26.31% return in the said period.