There are certain smallcases that have been removed from the Discover section. Let’s understand why we did this and what this means for you.
- Nothing changes for existing investors – Our research team will continue maintaining these smallcases and all investors in it will continue to receive the rebalance updates
- Existing page links of the smallcases will still work – All new investors will be able to go to these links to buy the corresponding smallcases
- No longer under Discover – These smallcases will no longer be available under the discover section because of specific reasons
- smallcase Select – Large Cap
- smallcase Select – Mid Cap
- smallcase Select – Small Cap
- smallcase Select – Value Investing
The smallcase platform was launched with the idea of providing various themes and strategies from which investors can pick the ones they like. A lot of investors reached out to us mentioning that they want to invest in equities for the long-term, but don’t have a theme or idea in mind. Select Smallcases were launched to fulfill this immediate need.
Since then, we have extensively researched to build a long-term, less risky product for people who don’t have a specific idea or theme in mind. We recently introduced the concept of core-satellite approach to fulfill the requirement of such investors. The All Weather Investing smallcase acts as the stable core while Smart Beta and other smallcases becomes the satellite. Please watch this video to learn more about the All Weather smallcase and this video to understand the core-satellite investing approach.
- Magic Formula – Low-Cost Version
- Thrift Shopping – Low-Cost Version
- Growth at a Fair Price – Low-Cost Version
- The Naked Trader – Low-Cost Version
- Low Accruals – Low Cost Version
These smallcases were launched to facilitate low cost investments in the corresponding strategies. As the smallcase criteria try to search for stocks that fulfill the model conditions and most of the included stocks belong to the small-cap and mid-cap categories. This is expected also, because stocks in these categories are more likely to be miss-priced rather than large-cap stocks. Also, given that these were low-cost strategies, a number of the stocks in the smallcases were also less compared to the average number of stocks in other smallcases.
Because of the above mentioned reasons, these smallcases are in general more volatile and risky as compared to other smallcases. We do try to explain the risk with explicit risk labels on each smallcase page, but because of the low minimum investment requirement a lot of first-time investors start their investment journey with these smallcases – without fully understanding the risk. Thus, to avoid this miss-understanding and as requested by many of our users, we are removing these smallcases from the discover section.