What is Smallcase investing and what’s best about it?

What is smallcase investing

Learn what is smallcase investing. This guide will teach you everything you need to know, from what it is and how it works, to the benefits and risks.

You might be aware of 2 ways of participating in the stock market, one directly buying/ selling stocks and another through mutual funds.

There is also a third option which is known as Smallcase investing.

In this article, we will discuss in detail about

What is Smallcase?

What is Smallcase investing?

How is Smallcase different from Mutual Fund?

What is rebalancing in smallcase?

Is it safe to invest in Smallcase and more

What is Smallcase investing?

Smallcase investing lies between stock investing and mutual funds.

Here an expert designs a portfolio of stocks based on the goal but buying and selling of stocks is done by the investor himself instead of managers.

For designing the portfolio an expert charges minimal fees.

It is somewhat similar to a mutual fund where you pay for the expertise of a fund manager but with fees less than that of the mutual fund.

An expert can be a SEBI Registered Advisor who is just advising the portfolio of stocks with the intent to beat the Index.

So Smallcase is basically a process of copying an investing strategy of an expert.

How Smallcase works

Smallcases are designed in a similar way as mutual funds.

The expert designing the Smallcase selects an idea or goal for the smallcase and picks stocks focusing on that idea.

If you are interested in that idea or agree with the vision of that expert you can pick his strategy and start investing.

How much does Smallcase charge

Smallcase charges Rs. 100 per transaction.

On SIPs into existing smallcases, Rs. 15 will be charged.

No charges on rebalancing, managing, or exiting a smallcase.

More on Smallcase charges

How is Smallcase different from Mutual Funds or Stock Investing?

Stocks InvestingSmallcaseMutual Funds
The expectation is to beat the Index
Returns depend on the theme or idea
Low return than direct stock investing
Active involvement is requiredInvolvement more than mutual funds but less than direct stock investing
No active involvement
Expertise is requiredNo expertise requiredNo expertise required
No feesLow fees than mutual fundsHigher fees
Control is in your handHigh control
Less control

Types of Smallcase

There is a huge range of smallcases based on various themes and ideas.

You will find smallcases that invest in Debt, Equity, Gold, long-term investing, sector Trackers, etc.

Types of Smallcase
Types of Smallcase

Filter smallcases based on 

  • Subscription Types
  • Investment Amount
  • Volatility
  • Investment Strategy
Types of Smallcase

You need a bit of involvement and knowledge to select a smallcase that fits your goal.

How to invest in Smallcase in Zerodha

On the smallcase dashboard under the Discover menu, you will find all the smallcases listed.

Click the smallcase you want to invest in

How to invest in Smallcase in Zerodha

On the next screen, you will find below details about the respective Smallcase.

  • About Smallcase
  • Minimum Investment Amount
  • Past Performance
  • About the Manager of smallcase
How is Smallcase different from Mutual Funds or Stock Investing?

Once you are ok with all the details and ready to invest, click on Invest Now

What is Smallcase investing

On the next screen, you will get an option to log in with your preferred broker in our case it’s Zerodha.

What is Smallcase investing

Please note investment in the smallcase is done using the Demat account of the broker you log in with and all the stocks will appear in that respective Demat account.

Smallcase is just a platform to invest but all your transaction is done through the Demat account.

Once logged in with the broker, you can make a change in the amount required and then click on Confirm Amount

On click of Confirm Amount smallcase will verify if the entered amount is available in your Zerodha Funds(or any other Demat account you have logged in through)

If funds are not sufficient you will get the below screen to add funds.

If funds are sufficient, within a few seconds your order will be placed and you will see the below confirmation.

All the stocks will be available in your Zerodha Demat account and also same will reflect on the Smallcases dashboard as well.

What is rebalancing in Smallcase?

The smallcase manager keeps monitoring the stock portfolio continuously and may suggest certain changes as and when required.

Whenever smallcase is modified might receive a notification as below for rebalancing from smallcase.

Rebalancing means there is a change in the portfolio you invested, your smallcase manager is suggesting adding or removing some stocks from the portfolio based on his research.

Rebalancing is just a click on smallcase and all the buying and selling of stocks will be done automatically.

Returns for every smallcase are shown after factoring in the rebalancing so that you get correct returns information.

The frequency of rebalancing notifications for short-term smallcases can be more than the long term.

Rebalancing becomes an important part of smallcase investing.

Is it safe to invest in smallcase?

Investments: smallcase portfolios are created by experts so it is better than you investing directly in stocks without knowledge and research.

However, investing in smallcase is risky since you are investing in stocks and there is always capital risk.

Platform: As a platform smallcase is safe as it is owned by the company Windmill Capital Private Limited which is registered with SEBI as a Research Analyst.

Also, all your stocks are in your preferred broker Demat account and smallcase is just a platform to facilitate transactions.

Can I create my own smallcase?

Yes, you can create your own smallcase and can use it to invest as any other readymade smallcases.

Once you login to the smallcase dashboard you will find a menu to Create

Can I create my own smallcase

Clicking on Create will take you to the below screen with Create smallcase button.

Can I create my own smallcase

Click Create smallcase to get to the smallcase creation screen. Here you can appropriately name your smallcase.

Add stocks you want in the smallcase, also you can group the stocks in different segments.

On the right-hand side, you can see the Minimum Investment Amount changing for the smallcase as you add or remove stocks.

Once you are happy with your smallcase portfolio click Save smallcase on the right-hand side.

How much does Smallcase charge

After saving, all the smallcases created by you will be visible under Created smallcases as below.

How much does Smallcase charge

You can invest in your smallcase like any other smallcase by clicking on Invest Now as shown before.

Smallcase makes it very easy to invest in a basket of stocks through a single click.

If you have stocks in which you want to regularly keep investing every month smallcase is the best way to do so.

How does smallcase make money?

Smallcase earns from the below charges

Transaction Charges: ₹100+GST

SIP Charges: ₹10

Apart from this smallcase also makes money by taking cuts from fund managers’ subscription fees.

How to withdraw funds from smallcase?

You will find all your investments under the Investments menu.

How to withdraw funds from smallcase

Click on Investments and you can see all your invested smallcases as below.

Click on the smallcase you want to withdraw or close.

How to withdraw funds from smallcase

You will find all the details of your ongoing smallcase like current value and total returns.

How to withdraw funds from smallcase

Scroll down and you will find the Exit smallcase button.

How does smallcase make money

Click on the Exit smallcase and you will see the below screen. Here you have the option to do a full exit or partial exit.

How does smallcase make money

In the Whole exit type, all the stocks in the portfolio will be sold at once, in the Partial exit, you can select the stock’s weightage you want to sell rather than the complete portfolio.

Select the appropriate option and click on Exit smallcase.

With just one click on Exit smallcase all your holdings will be sold and stocks are debited from your Demat account and funds are credited.

Please note sell is triggered from smallcase but the actual selling of stocks and fund credit takes place in the Demat account you are logged in.

How does smallcase make money
How Smallcase works


Smallcase is an innovative way to invest in a diversified portfolio of stocks curated by an expert just like mutual funds.

But it helps you to save on the mutual fund expense ratios and can be more aligned with your goals and risk appetite.

Smallcase has a user-friendly and easy-to-learn platform for both beginners and experienced investors.

Smallcases are regularly rebalanced and optimized as per market conditions. Hence, you are fully aware of what is happening with your investments unlike in mutual funds but you have to be alert in replicating the changes quickly.

Overall smallcase is a smart and convenient way to invest in stock markets with the advantage of professional expertise with complete responsibility for your own investments.

If this article helped you understand what is smallcase investing, let us know in a comment below.


Is smallcase owned by Zerodha?

Zerodha is not an owner but one of the early investors in Smallcase through their VC fund Rainmatter Technology.

Zerodha was also the first brokerage service to integrate with smallcase.

Is smallcase SEBI registered?

Yes, smallcase is owned by the company Windmill Capital Private Limited, registered with SEBI as a Research Analyst.

Can I withdraw money from smallcase?

You can sell your smallcase anytime, all the buying and selling takes place through the broker you linked to smallcase and all stocks are available to sell if you want.

Once you sell the stocks you can withdraw funds from the broker account.

How safe is smallcase?

Smallcase is owned by the company Windmill Capital Private Limited which is registered with SEBI as a Research Analyst so in that way it is safe.

Also, all transactions take place through your broker Demat account, smallcase is just a platform to facilitate transactions and portfolio management.

However, stock investing in any way is risky and highly dependent on market conditions.

Can we sell smallcase anytime?

Yes, it’s completely in your hand to sell smallcase whenever you want.

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