Thematic Investment – Invest in Idea and not stock.
They are one of the newest fintech startup working to make the life of Indian investor easy. They help their clients to invest in Thematic investing. Some of you may ask as what do we mean by Themeatic investing. In simple terms, if you want to invest in a particular theme like Monsoon or GST, they will help you in purchasing that. Next question would be why I need their help. I can buy shares on my own through my broker. But if you think, even if you have decided that Monsoon is going to be good this year, it is still difficult to choose the stock which will gain most by a good monsoon. Smallcase have preselected the stock for more than 10 themes which varies from Monsoon to GST to Banking privately.
Below you can find some themes and how they have performed.
Most of these themes have around 10-15 stocks in each of them. So for example if you want to take position is GST theme as you feel that GST is finally going to pass. You can buy GST theme from them which in turn will buy around 15 different company shares from GATI to Asian Paints which smallcase team feels that would benefit the most with the bill passage. The value of these themes varies as per share price but they are available from Rs 10,000 to Rs 60,000 depending on the theme and number of shares in the theme. The base value is the minimum value for which you have to buy but you can put a bigger amount which you want to purchase and they will recalculate the new number of share you can buy.
Selling of smallcase can be done together or you can individually sell share as per your needs. There is no lock-in on selling of shares and you can sell them as per your needs.
One thing to remember is that you have to buy full smallcase and you cannot change the percentage of share or remove any of the stock from the smallcase. So either you buy the full smallcase or leave the full smallcase.
How can you trade with them?
Smallcase use Zerodha as a broker partner so to buy a smallcase you would need to have a account with Zerodha. Purchasing a smallcase is really simple and after going to their website www.smallcase.com you just have to login with your Zerodha account and then choose the smallcase you want to purchase. The shares in the particular small case would be purchased using your Zerodha trading account. In case you already have not opened an account with them, you can open by clicking on the button below.
What does is cost ?
Zerodha is the largest discount broker and provides ZERO brokerage for delivery based trading. So to buy a theme there would be no brokerage cost associated with the same. There is a nominal charge of Rs 100 which would be charged by smallcase. But once you purchase and there is some upgrade in the smallcase, you don’t have to pay anything and it would be done free of charge. You do have to remember that there would still be government charges which would be payable by you when you purchase the theme. For delivery trades it comes to approx .10% of the traded volume. Apart from that when you are selling there is a Demat charge of Rs 15 which is payable depending on different stock you have. So if the theme you have selected have 10 different stock, you will end up paying Rs 150 as Demat charges. So if you are buying a theme for Rs 10,000 there would be an approx. cost of Rs 150 or 1.5% which is high. But if you purchase Rs 50,000 of the same theme, you will still end up paying Rs 150 as number of stock remain the same. In this case, the cost will be around .3%.