If there is one thing that can be said about direct stock investors, it is that they are certainly not averse to risks. Someone who invests directly in stocks does so with the understanding that the stock markets are going to be volatile. There will be bad days along with the good days, but as long as the good ones outnumber the bad ones, the investor would consider himself or herself to be successful.
Direct stock investors embrace the market volatility and take investment decisions based on these ups and downs. But there are a number of reasons why direct stock investors would also benefit by investing in smallcases.
Portfolio based investing
Investing in a portfolio of stocks has proven to be more beneficial than investing in 1 or 2 stocks. A portfolio allows you to diversify across market segments and capitalisations. Not only do you benefit from the upside in different stocks, but a portfolio also allows you to stay protected from the downside in a particular stock.
Investing in themes
Direct stock investors follow the news and purchase stocks of companies that are making the news and are expected to continue doing so. A stock investor can do this with individual stocks, but not with a theme. A smallcase will allow you to invest in theme. For example, GST is always in the news and to take exposure to companies that will benefit from GST, you have to just invest in the GST smallcase.
Research and analysis by experts
One of the biggest hurdles for stock investors is taking the time and effort out to research stocks. Fundamental analysis of companies is an important step before buying its stocks. This, of course, is not easy to do and can take away a lot of the investor’s resources. But not if you invest in a smallcase. The hard work is done for you by the smallcase team of researchers and analysts. The stocks in every smallcase pass our stringent proprietary filters so that investors don’t have to worry about making the individual choices.
Investing in smallcases comes with many other benefits. They are transparent, customisable and straight-forward.
smallcases come in different types–thematic, model-based and sectoral. Check them out and begin investing in the ideas you believe in.