A smallcase is a portfolio of stocks that reflects a theme, idea, or strategy. It ranges from long term trends like rising middle class consumption or growing luxury goods & services market; or simply from an investment strategy based on fundamental criteria like earnings growth or dividends. Stocks included in a smallcase are expected to perform well as the theme plays out.
For example, Dividend Aristocrats is a smallcase that consists of companies which have increased their dividend payout consecutively for the last 10 years.
Each smallcase has the following attributes to understand it better
- Index Value: Every smallcase index starts from 100 and represents the return generated by the smallcase since its inception. For Dividend Aristocrats, an index value of 234.99 tells that it has generated a return of 134.99% (234.99-100) since its inception. You can view the inception date of the smallcase under the Overview.
- Returns: CAGR (Compounded Annual Growth Rate) indicates the average yearly return generated by a smallcase from the date of inception. In the above example, it's 19.40% since inception.
- Minimum Amount: It suggests the minimum amount required to achieve the prescribed weighting scheme of the smallcase. To maintain the prescribed weighting scheme of the Dividend Aristocrats smallcase, a minimum of ₹13,764.70 needs to be invested. This amount changes in real-time based on the current prices of the stocks in the smallcase.
- Rationale: Each smallcase has a sound rationale & reasoning for why it was created and why you should invest in it. This section also shows you the methodology used to create the particular smallcase.
