Is SmallCase Better than Mutual Funds

I see a lot of people are jumping towards the SmallCase seeing the crazy returns it has generated over the past year or so. To be honest, the returns are spectacular for some of the small cases even it has given around 100% returns.

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How thr smallcase works is that you connect your account using your brokers in a smallcase and thus when you buy a smallcase, the stocks in that smallcase will be yours and it will come to your stock holdings. Now there is one problem with it, since the stocks are being kept in your demand account it is your responsibility to do rebalancing of those smallcase.

For example, you have got a smallcase of top 5 stocks by volume, now say for example after 1 week, 2 stocks have been replaced so you have to manually exit those 2 stocks and buy the new 2 stocks. This is the problem most of the people face when using the smallcase. So the crazy returns you are seeing might not be true for all because of you miss rebalancing as per the smallcase your returns can also lower.

Now how it is different from mutual funds. In the mutual funds, you send the money to the mutual fund house and they manage your money to buy the stocks and sell that means your money is in Mutual Funds pocket and they do the hardworking and give you the returns. So now the task for you is simplified and thus you don't have to worry about the rebalancing and other things. And this is the main difference between the mutual funds and smallcase.

If you are someone who wants yo learn about the stock market, then the best is to start with smallcase and learn the way smallcase owners thinks. How they exit the stock, buy new one, everything about stock selection. This way you will know the game and thus can create your own smallcase going forward.

But if you don't have time or you are just lazy then the best is to start with Mutual Funds using the SIP mode where you will pay some monthly amount everyday using the Systematic Imvestment Plan and create your wealth. The SIP is best for Mutual Funds because you can average it out and in the libg run can generate stellar wealth.

In my case I have been doing the Mutuak Fund and along with that I am also buying and selling the ETF using the ETF shop so that I can continue to get my money rotated. My returns would not be too much but still its great to beat the index and earn big.

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