To begin with, let’s understand a few basics:

1. What is a subscription in smallcase?
A subscription for a smallcase is a plan that you purchase to get access to the constituents and the ability to invest in the said smallcase along with timely portfolio updates like rebalance.

2. When does the investor need a smallcase subscription?
As an investor, if you choose to invest in fee-based smallcases, you’d need a subscription plan.
This is to get access to regular portfolio updates and research from the manager. You pay this fee to the manager.

3. How does smallcase subscription work?
Once you have bought the subscription plan and invested in a smallcase, you receive periodic rebalance updates based on the manager’s research & expertise.  Other benefits like portfolio tracking, SIP, Invest More in a tap, etc are also made accessible. 

4. How does the subscription renewal work?
On the last day of the subscription, you will get a grace period of 7 days to renew the subscription plan.
The option to renew is available under Accounts > Subscriptions > Renew, where subscription plans offered by the manager are visible. 

5. What are the subscription charges or plans?
Subscription plans vary for different managers & smallcases.
Currently, they are of 2 types:
– AUM (Assets Under Management) based
– Flat fee-based

In AUM based,

• the manager may charge a small amount upfront
• a certain percentage of your annual net worth is charged as a monthly fee along with GST. The percentage varies from smallcase to smallcase and is decided by the manager.
  
  E.g.,
  I. You pay ₹250/- as an upfront fee on 11th February, to get access to constituents & research of a smallcase.
  II. Start investing in it from 15th February.
  III. Every day, your net worth / current value in the smallcase is noted.
  IV. On the completion of one month from your subscription day, here, 10th March, your daily net worth is added and divided by 30. This helps in getting the value of average Assets Under Management.
  V. Now, let’s say the manager charges X% on the annual net worth. This makes our monthly manager charge X% divided by 12.
  VI. Therefore,
  manager’s monthly fees = (Average monthly AUM) * (X% ÷ 12)

In flat fee-based, the manager charges a fixed amount which is available in monthly / quarterly / half-yearly / yearly plans. This fee is to be paid before you can invest in the smallcase. It is available in periodic plans.

6. What happens after the subscription is cancelled?
Once the subscription is cancelled, the stocks are present in your Demat account. You are still the owner. However, you will not be able to receive any portfolio updates from the manager.

7. What are the steps to access a subscription plan?
– Choose a fee-based smallcase you are interested in
– Click on subscribe now (right lower corner in the app; right side on the web)
– Enter your contact details
– For a few managers, you need to assess your risk profile. This helps you understand if the smallcase fits your risk appetite.
– If the smallcase doesn’t fit your risk profile, you are recommended smallcases that suit your risk appetite. You can either choose to invest in a smallcase from the suggestions or continue investing in the one you picked initially.
– To invest, click on continue, enter PAN number, choose your state, and pick from the subscription plans offered by the manager.
– An option to auto-renew subscription is available at the left bottom corner
– Now, click on Pay
– An OTP is sent to the registered email ID, enter the same
– You will receive an agreement on the same ID once you have successfully invested in the smallcase.

Watch a step-wise guide here.

Happy investing! 🙂