Has anyone tried smallcase?
Does it provide a higher return than same category stocks / mutual funds ? Should I start investing in smallcases ? My mf and stocks returns in the last 2 years gave very average returns ~ 15%. Where could I invest for higher returns ?
Small case is sometimes shady with the way they portray data. They’ll pick a convenient timeline where they can show maximum gains.
My experience -
I paid 8k as yearly fees for a 15 smallcases.
I started using smallcase from September 2022
Though I use only 8 of them.
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I use smallcase because earlier I used to invest in stocks directly by hearing some random advice from Twitter/YouTube. I don't have the time and energy to monitor my portfolio daily nor do I have time to research about new stocks.
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My top 3 small cases are giving me 17,15 and 11 percent returns, these are small/mid cap stock baskets with momentum strategies.
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Bottom 3 are giving 5,6,8 percent returns, baskets are dividend bases, brand/large cap based, nifty and gold based smallcases.
Overall I like the product and I'm satidifed with it. You get to understand how a pro stock market expert thinks ( both short term and long term). If the stocks doesnot do well the fund managers book loss, which I feel is correct because personally I would have sat on the losses thinking that one day the stock would bounce back.
If I have to compare MF with smallcases. Both are almost the same. If you want to invest in stocks directly but don't know how to pick stocks, go with smallcase.
Also, sometimes all the rebalancing of the baskets can be a pain nad at first smallcase can be a bit complex to understand.
Have over 1cr in nearly all the windmill funds. Last 2 years did not outperform normal mutual funds.
Why not go to the PMS route? CapitalMind is pretty good, for starters
Smallcase follow shady practice, they choose the timeline so as to show max returns , cagr
If a fund is not performing then it will be hidden or deleted so u will always see good returns in all funds
As it is not as regulated via sebi like MF so they can fudge their data easily ,
Expense ratios are highest in industry even mush higher than MF so returns after fees , tax is too low
Because it's so risky one will put small amount but then the expense ratio gets soo high that it doesn't makes sense , also unless there is a 7 year history for a fund u can't say anything for it , right now lot of small mid cap might look attractive but once the bear cycle begin they all will vanish from smallcase
15 % per year ?
Though I have been investing since last 2 years but invested a majority of the chunk near sept 22, and gradually increased it until apr 23. Amd even booked some profits in small cap stocks which I think gave too much returns like adani willmar etc. So you can consider around 13% cagr
That's more than decent right? Which mutual funds perform better than this ?
Considering smallcase as an core investments is wrong in my opinion. The only benefit I had from it is learning new stocks every few quarters when they rebalance. Otherwise the charges, taxes involved make it uncomfortable for me as a long term investor in businesses.
Off topic but is your username an AoE reference
15% is not average lmao. It’s expected for MF to generate 10-12% over a long time horizon. Anything above that is over-performance.
Increase your investment corpus gradually and let compound interest do its magic.
So it goes like this my mfs are generating 13% overall which includes index, bluechip, tech and flex cap funds.
I buy bluechip stocks and etfs on dip which has generated me nearly 18% so both averaging around 15%
It’s ok. But look for 5-15 year horizons IMO.
I've been smallcase subscriber since Nov 2021( last market peak) and have been investing around 50k a month in sip form. At the same time I started 15k sip in MF. Smallcase returns as on today is 7% and MF is at 19%
Profits in smallcase could have been more, but it took a hit due to the Hindenburg report on Adani. And I was idiot not to react and wait for some sort of communication. Even emailed them but all I got is investing is a long term game and don't worry about short term news.
Lesson learnt here, if something like this happens, don't wait for the fund manager to give any communication/instructions in what to do.
Smallcase is a scam to fool people who don’t understand look ahead bias.
