Smallcase stock portfolio themes – Should you opt them?

Smallcase stock portfolio themes - Should you opt themSmallcase stock portfolio themes – Should you opt them?

I was reading Businessline couple of days back and heard about Smallcase stock portfolio themes being offered by Zeroda stock broker. This is nothing but a investment idea transformed into portfolios. These theme based stock portfolios became live from July, 2016. Smallcase is the company which creates stock portfolios almost every week. I was researching about Smallcase and found the concept was interesting. What is Smallcase stock portfolio themes all about? How small case themes are being created? Which stock broker is offering Smallcase stock portfolio themes now?

How do Smallcase stock portfolio themes work?

  • These are not stock tips services. Smallcase creates stock based portfolio almost every week.
  • It brings market themes and trends based on predefined category.
  • Themes are based on a top down approach. E.g. If the monsoons are good, smallcase created a set of stocks as Monsoon stocks which are expected to perform well.
  • Smallcase can also help to manage periodic updates, tracks stocks and it updates the portfolio every quarter.
  • Stock themes include long term trends, government reforms, sectoral exposure, GST stocks, etc., New smallcase themes are added every week to have freedom in choosing the stock portfolio.
  • Each theme is based on 20 stocks reflecting an investment idea.

Also Read: Best Real Estate Stocks to invest in 2016 now

What are features of Smallcase stock portfolio themes?

  • Themes based on trends and hence good to have such stock portfolios.
  • Portfolios give diversified and not dependent on a single set of stocks.
  • Smallcase charges a flat fee of Rs 100 per theme. It is a low cost investment idea.

How to invest through Smallcase?

Currently Zerodha stock broker only is offering smallcase themes. You can go through Zerodha if you would like to consider these themes.

What do Smallcase stock portfolio themes consists of?

Intelligently weighted 20 basket stocks are reflected in each smallcase theme. It includes GST Stocks, monsoon stalks, Private banks, sector exposure I high growth industry stocks etc.,

How is each Smallcase theme is measured?

Each smallcase value is called the index. At inception it is set to 100. Current value shows how it is moved. E.g. at inception if it shows 100 and it moved to 120 in 1 year, returns in 1 year is 20% (20 over 100).

How Smallcase stock portfolio themes are created?

Every week, one small case theme is created based on various trends. Once they identify the theme, they do top down approach about sectors, substitutes and best stocks to be part of that theme. Once the stocks are finalized, the theme is floated to investors. One new theme is being created every week by smallcase.

Are there are any hidden charges in Smallcase stock portfolio themes?

There is no minimum investment to be made in small case theme based stock portfolios. Smallcase charges flat Rs 100 per theme. No fees for exiting, rebalancing and managing smallcase portfolio. Currently this concept is being partnered and offered only thru Zerodha. They would charge you through their Kite web based platform.

What are some of the sample themes?

1) Small case – Government Reforms

This theme focuses on GST Opportunities. Currently the index shows 292. Returns in last 1 month are 4.8% and returns in last 1 year were 21%.

2) Small case – Smart Cities

This theme focuses on stocks that benefit from Smart Cities. Returns in last 1 month are 2% and returns in last 1 year were 17%.

3) Small case – Banking Privately

This smallcase theme focuses on private banks, which has potential to grow. Currently the index shows 279. Returns in last 1 month are 10% and returns in last1 year were 43%.

4) Small case – Cash of Titans

This theme focuses on cash rich companies which has potential to grow. Currently the index shows 250. Returns in last 1 month are 11% and returns in last1 year were 29%.

5) Small case – Bargain buys

This theme focuses on stocks available at low prices. Currently the index shows 242. Returns in last 1 month are 8.5% and returns in last1 year were 36%.

Also Read: Good midcap stocks to invest now

Should you consider Smallcase stock portfolio themes?

Though this is a nice concept, it has just evolved. However, smallcase themes show that the index has already reached 250 to 290 which is surprising. I heard this is still in beta version, partnered with Zerodha and hence not being partnered with other stock brokers as of now. These themes are available at very cheap prices of Rs 100 per theme. One should review these themes before they start investing in stocks specified in such themes.

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Smallcase stock portfolio themes – Should you opt them

Suresh KP


  1. I am currently using smallcase by Zerodha, as you said it is an interesting concept, however time will tell if we get benefit out of it or not.

  2. For a layperson how would I as an investor know what to do when Zerodha does portofolio adjustments quarterly what do I as the layperson have to modify in my portofolio.

    1. Conrnelio,
      I was talking with Small case representative yesterday about the same matter. It is upto us if you want to go with the modification or not. If new stocks would fit in the idea then those will be included. Or may be existing Stocks which may not now fit into the idea of smallcase would be removed. but it is solely your choice.

      Hope this helps.
      Deepak P

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