Smallcase is a platform that offers readymade portfolios of stocks and/or ETFs (called smallcases), that you can invest in at one go. Smallcases are built and maintained by professionals – such as us! – with trades being executed through your broker, enabled by the smallcase platform.

Prime Stocks is our list of stock recommendations. These recommendations are not designed to be a portfolio. You can pick and choose from Prime Stocks to create your own portfolio, based on stocks you may already own, your risk level, and what convinces you the most. We have classified Prime Stocks into categories to make it easier for you to understand the nature of the stock to decide which ones to invest in. We give individual calls on these stocks, and will send you alerts if we change the call from a Buy to a Hold or Sell, and you may check the same on the platform. 

PrimeInvestor smallcase is a readymade stock portfolio, with each stock assigned a specific weight. You need to invest in this portfolio as a whole. We will be reviewing and rebalancing each portfolio periodically, and you will be able to receive alerts and make these changes through the smallcase platform. 

You can go to the PrimeInvestor smallcase of your choice, on the smallcase platform. Once you subscribe to the PrimeInvestor smallcase by paying the requisite fee, you will be able to view the portfolio. The smallcase platform will execute the investments for you, through your broker.

On the research side, you will be paying PrimeInvestor a quarterly or annual fee as mentioned on the smallcase portfolio page. On your brokerage platform, you will incur brokerage cost, securities transaction tax (STT) and demat charges, similar to buying and selling of any stock. Please go to the respective portfolio’s page on the smallcase platform to know the subscription fee. But as a PrimeInvestor subscriber, you do get a discount on the fee. 

Investing through SIP or lumpsum is your choice. The smallcase platform supports both. However, the nature of the portfolio can also make a difference. The PrimeInvestor Core & Satellite ETF, for example, lends itself very well to an SIP. The PrimeInvestor Financial Disruptors, on the other hand, may work better on lumpsum investments at different levels.

We review and rebalance each PrimeInvestor smallcase portfolio on a quarterly basis. Changes we make will involve changes in stock/ETF weights, exit of a stock/ETF, or introduction of a stock/ETF. Please refer to the detailed explanations of each portfolio to know more about the nature of rebalancing. To execute a rebalancing, you will receive alerts that a rebalancing is due. You can then go to the smallcase platform, which will effect the necessary changes once you give your consent to rebalance through a single click. Please refer to the FAQ section on the smallcase platform for a detailed explanation.

The taxation is the same as tax on individual stocks. Stocks/ equity ETFs sold within a year will be taxed at 15% on capital gains and those held for more than a year at 10% (after the first Rs 1 lakh in long-term capital gains from all equity investments). Apart from this, you will be paying tax on dividend income (treated as other income) received on stocks in this portfolio, at your tax slab. TDS shall also be deducted on such dividend income at applicable rates unless you are submitting Form 15G/15H. For gold/debt/international ETFs, capital gains will be taxed at your tax slab rate if held for less than 3 years and at 20% on capital gains after cost indexation if held for over 3 years.