Congrats on starting your investing journey!
While it is good for you to sit back and let your money work for itself, it is not advisable to completely forget about it either. Though actively managing the smallcase isn’t required, here are some pointers & best practices that can make your smallcases experience even better:
Do not sell your smallcases directly on the broker platform
The orders placed on smallcase would be executed through the broker platform, so this information flows from smallcase to the broker and is available to both parties. This ensures that your holdings on the broker platform and on smallcase are in sync.
If you were to sell stocks bought through smallcase on your broker platform, this information stays with the broker only, to maintain customer privacy. In this case, the smallcase would continue to show these stocks although you have already sold them on the broker platform. This would, in turn, cause your smallcase to reflect incorrect returns.
This can be compared to a one-way street. A one-way street indicates that traffic only moves in one direction. You can move from one end of the street to the other, as long as it’s in the direction of the traffic. Moving in the opposite direction of the traffic wouldn’t be possible.
Apply Rebalance Updates
Rebalancing is the process of reviewing and updating the stocks & weights of a smallcase so that it remains true to the theme or strategy. Rebalancing takes into account quarterly earnings, company news & updates, etc. and uses proprietary algorithms to objectively narrow down on the right set of stocks.
Rebalance updates are not applied automatically. You would be notified via email when a smallcase you have invested in has a rebalance update available. You can review the changes and apply the update in 2 clicks!
Rebalancing is critical to ensure that you remain invested in the original idea of the smallcase.
smallcases are long-term investments
smallcases are low-cost instruments that help you passively invest in a portfolio of stocks or ETFs. Passive investing means that you choose a specific investment strategy and invest in it for the long-term. Hence, smallcase investments, by default, are long term in nature and it’s best to hold them for the long run.
Start an SIP
While we are on the topic of long-term investments, let’s talk about something that most long term investors love – SIP. Starting an SIP is one of the best ways to ensure investing discipline. Not only it makes timing the market unnecessary but it also helps you weather low-market periods in a better way.
2 important things:
- SIP orders are not placed automatically.
- You will be notified on SIP due date via email & push notification.
Hope these pointers will help in enriching your investing experience. Need help with anything? Just drop us an email at firstname.lastname@example.org.