Buying smallcases with Zerodha Kite

smallcase helps you buy, track & manage intelligently-weighted portfolios of stocks easily!

Portfolio investing is the best way for long-term equity investing, especially to take the right exposure to sectors (pharma, banking), themes (increasing internet penetration, rising rural demand) or even fundamental investing strategies (growth, value, momentum). Unfortunately, it’s quite the cumbersome & broken process –

• buying a portfolio of 20 stocks takes 100+ clicks on any broker interface,
• tracking them as a separate portfolio on spreadsheets/portfolio tracking apps
• and managing them (investing more, exiting, rebalancing) takes another 120+ clicks

We’ve made this task super simple helping you do all of these actions in at most 3 clicks. Sounds great, right?

One of our smallcases, the most bought one after ‘demonetization’

However, there’s a lot more that happens behind the scenes right from opening your broker/demat account to funds transfer to dividends/stock splits, etc. That’s where the easy-to-integrate Kite Connect APIs from Zerodha came in handy!

With these APIs, we were able to build India’s first self-serve thematic portfolio investing platform, giving you a seamless experience

Let’s see how this integration works step by step

Logging in

If you already have a Zerodha account, you start from here – https://smallcase.zerodha.com/ (if you don’t have one yet, sign up with your details on the same page, you’ll be contacted soon)

After logging in with your Kite credentials, you get an authorization request as below

This is for smallcase to recognize you as a valid Zerodha client and help you place orders on our platform, check if you have sufficient funds to buy a particular smallcase and see if your holdings match what we expect (if you have bought a smallcase)

FYI – smallcase doesn’t get the permission to place orders automatically without your approval, use your funds or your holdings info for any other purpose

Now you’re inside smallcase, and can start exploring from our line-up of 45+ smallcases to find the ones you like best – Finding your smallcase

Buying a smallcase

Once you find a smallcase you want to buy, clicking the Buy smallcase button on the page should bring up a page where

1) you confirm the amount you want to invest and
2) see the stocks & their quantity you will buy

At this step, smallcase checks funds available in your Zerodha account to see if you can buy the smallcase with the amount required. If not, an error message is shown as below

Clicking the Add Funds link should take you to the payment gateway page where you can transfer funds to your Zerodha account. Incase you use netbanking/IMPS transfer to add funds, once the funds reflect on your Kite dashboard, you can click the Refresh button to proceed

You can now see the stocks and the exact quantity you’ll buy. This quantity of shares to be bought is calculated based on the weighting scheme prescribed for that smallcase, so you get the right exposure to the underlying theme

After you’re done reviewing the stocks/quantities, you can click the Invest Now button to place market orders for these stocks

Since all stocks in all smallcases have been screened for liquidity, all orders should fill immediately (only case in which a order doesn’t execute is if the stock has hit the upper/lower circuit for the day, and no more orders are accepted from the exchange – has happened 0.01% of all orders till now)

These are orders are placed through the Zerodha Kite systems, so you will also receive notifications for the orders/trades on Kite

These stocks are also visible in the Positions tab of Kite, will start showing up on Holdings the next day and will get credited to your Zerodha demat account in 2 days of buying the smallcase

You can start tracking your smallcase instantly on our platform and the smallcase P&L will change in real-time. You can also see how the individual stocks are performing

We charge a flat fee of Rs 100 (or 2.5% of the investment amount whichever is lower) when you buy a smallcase, this is debited from your Zerodha ledger at the end of the day. You can see this on your backoffice at Q. This is over & above the brokerage charges & fees you incur. Also, we don’t charge for subsequent orders in the same smallcase (investing more, exiting, managing)

Also, to filter smallcase stocks vs your stocks bought on Kite, you can separate them with the smallcase Filter on the Kite Holdings page here

After buying your smallcase, you can track and manage it anytime you like. Unlike mutual funds, smallcases are baskets of stocks, so there is no lock-in period and you can sell whenever you like (Psst.. as a concept however, smallcase is most effective when used for long term investing purposes)

Word of caution

smallcase doesn’t receive your order/trade activity on Kite/Pi/Zerodha platforms, and selling a smallcase stock through any of the Zerodha platforms will not reflect on smallcase. In this case, your smallcase holdings & P&L will be impacted. You have all options to manage your smallcase (invest more or exit smallcase in 2 clicks, add/remove stocks to your smallcase) on our platform, so do ensure you use the smallcase platform for all smallcase-related transactions

Hope this helped! As always – feel free to write to us at contact [at] smallcase.com or ping us in our in-app chat once you log in to smallcase.com if you have any query