Personal Finance

What is smallcase and how to invest using the platform?

Currently, seven brokers collaborate with the smallcase and are offering this platform. These include Kotak Securities, HDFC Securities, 5 Paisa, Edelweiss, Zerodha and Axis Securities.

Bengaluru-based Smallcase Technologies is paving the way for modern investors, allowing them to choose from professionally crafted stocks that reflect an investment idea or strategy.

Currently, seven brokers collaborate with the company and are offering this platform. These include Kotak Securities, HDFC Securities, 5 Paisa, Edelweiss, Zerodha and Axis Securities.

How does Smallcase work?

Smallcase accounts allow an investor to buy and sell tradable securities based on predefined combinations.

To use the platform, follow these steps:

  • Go to the Smallcase website and click on login. To login you have to use the certificates provided by your broker. However, if you use a broker other than that described above, you cannot access the services.
  • Once logged in, choose from topics like All Weather, Smart Beta, Bargain Bye.
  • Now you will be able to see the stocks that make up the portfolio, their ratio and the rationale behind their joining. You can customize the small case by adding or removing stock.
  • While some brokers allow you to create your own personal smallcase, others offer curated smallcases.
For example, in this smallcase, Zero Debt Title selected high ROEs with debt-burdened companies and an established track record of high income growth. Source:


  • Once your smallcase selection is finalized, you will be prompted for a payment gateway. The price and weight of individual shares will determine the minimum amount you will pay for a smallcase, ie. In the above example, the minimum amount is Rs 16,331.
  • Once the payment is completed, the broker platform will place a purchase order for all the shares, which will be executed immediately on the basis of liquidity.
  • If liquidity leads to some orders not being fulfilled, the investor can go back and ‘repair’ their order, or later, on which a new order will be placed. Repairs are necessary to ensure that the portfolio matches the original theme.

Fee: For all-weather investment and smart beta smallcase: Rs 50 + GST
For all other smallcases (thematic / sectoral / model-based, equity and gold smallcases): Rs. 100 + GST ​​(Source: Zerodha)

These are lump sum fees for a smallcase. For further orders in the same smallcase, no additional charge will apply.

However, regular brokerage and other charges for buying and selling stocks will be deducted for every order.

Why you should go to smallcase route

  • An investment in equity funds attracts expense ratios which include fund management, distributor’s commission and other expenses. This expense ratio is deducted annually from your investment in equity funds and is roughly equal to 1-1.5 percent of the investment.
  • In comparison, you only pay brokerage for small cases (after initial order). Smallcase does not charge any additional investment fee.
  • Where you get a fund unit by investing in a mutual fund, a smallcase investment puts shares in your demat account. This is beneficial because investors receive tax-free dividends directly in their bank accounts.
  • Smallcase enables you to invest in ideas rather than shares based on market capitalization. For example, one can invest in companies that are working towards affordable housing projects if the government’s focus is on providing affordable housing to all. There is no equity fund that provides such exposure.
  • It usually takes three working days to process a redemption request with an equity mutual fund. With Smallcase, an investor can track investment in real-time during market hours. A request for redemption is also made in real time as sufficient liquidity is one of the stock selection criteria used in small cases. This, in turn, facilitates quick redemption.

Caution: It should be noted that the Smallcase platform may not be suitable for a first-time or new investor, as it may not be sufficiently qualified to understand the risks associated with the product. It is advisable to consult a financial advisor before investing through this product.

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