Is it worth investing in Smallcase with 3k per month?

Is it worth investing in Smallcase with 3k per month?

I’m a mutual fund investor, but I’ve recently started investing in Smallcases. Is it worth investing in Smallcases with a monthly SIP of 3k? What are your thoughts?

View on r/IndianStockMarket by Deadman0668

  1. How can you invest in smallcase with a fixed amount of 3k? You understand that in smallcase, you buy actual stocks in the demat account as per allocation set by the smallcase. So the amount will be varying.

    Every smallcase has a minimim investment amount. Please check thst before registering.

  2. Smallcase invest in a basket of stocks. Let’s say there are 10 stocks in a smallcase and one of those stocks is DMART which as of now trades at 3700. You now quickly realise that 3000 is too less of an amount. In almost all smallcases there is a minimum amount displayed that needs to be invested so that you can buy all the stocks in a basket in the right proportion.

    So, IMHO, 3000 is too less. My experience says that you at least start with 50K and increase it in multiples of that. Why?

    A smallcase needs regular rebalancing i.e. every now and then you are going to sell some of your stocks and buy new ones. And rebalancing of smallcase every 1/3 month means that most of the time you will be selling 1 stock and buying 1 stock (if you invest very low amount like 3K). That also means paying brokerage and taxes on every transaction. That in turn means you will negate whatever minuscule gains you will make before rebalancing.

    If you have finalised a smallcase reach out to the smallcase manager via Twitter or email to enquire about the minimum amount.

    I invested in Weekend Investing’s Mi_NNF10 Momentum smallcase for about 2.5 years and have now discontinued it. I reached to its manager on minimum amount and other queries. And I did get a reply.

  3. It’s better than wasting that money on cigarette, alcohol or any other wasteful activity….. but it’s not enough. It’s like a non smoker is healthier than smoker but less healthy than a sportsperson.

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