First Time Investor? How to Get Started with smallcases

Equity is the best way to create long-term wealth & smallcases are an ideal way to get started

Two question that often plague first-time investors are–Should I invest in equities? And where should I start? Let’s get both of these questions answered for you.

Should you invest in equities?

The short answer is Yes. Equity is your best bet to earn inflation-beating returns and create wealth over the long-term by investing small amounts periodically.

A detailed analysis of how equity beats other asset classes over different time periods is available here.

How can you start with smallcases?

A smallcase is a portfolio of stocks, based on a specific model, theme or idea. These stocks are of fundamentally strong and technically sound companies that are selected after they pass our stringent proprietary filters. A smallcase contains at the most 20 stocks. These points make a smallcase an effective way to invest in equities.

smallcases can primarily be classified into four broad categories:

• Thematic smallcases: These are portfolios that reflect a specific market theme or trend
• Model-based smallcases: These are portfolios that are based on a particular fundamental or technical investment ratio such as dividends, zero debt, earnings growth, etc
• Sector trackers: smallcases that have stocks of companies that belong to only one specific sector are called sector trackers
• All Weather Investing: A diversified portfolio of ETFs spread across asset classes like equities, gold and fixed income

All smallcases can be found under the Discover section. Here, you can either look at smallcases among collections or filter them by specific attributes.

To make it easier for you to understand the concept or idea behind each smallcase, every smallcase comes with a concise rationale. The rationale will tell you about the idea behind the smallcase as well as the kind of companies that the smallcase comprises.

Apart from this, there are a few other things that first-time investors should keep in mind as well. Read about them on Making smalltalk.