“Around 3-4 years back, the only investment I had was a recurring deposit that I used to pay my home loan,” says Chennai-based Muthu R. Of course, the need to invest in a more efficient manner was there for him. And he began with mutual funds after attending a financial awareness session at his workplace.
Once Muthu was comfortable with investments in equity funds, he started to explore direct stock investing. “I didn’t have a lot of knowledge,” he says, “but I started learning in a small way.” Even though Muthu couldn’t spare a lot of time learning about investing in stocks, he tried as much as he could. He pored over books and accessed content on the internet to understand concepts and theories related to direct stock investments.
“From what I learned, I understood that it is important for a stock investor to build a portfolio,” he recalls. But adapting the portfolio-based approach to investing wasn’t easy. This is when Muthu found out about smallcases.
He says: “Investors like me don’t have much time to build a portfolio, which is where smallcases are really helpful.”
Muthu, who is investing primarily for his retirement, began with the CANSLIM-esque smallcase.
Value investing is the method of buying stocks that are trading at lesser than their intrinsic value. Essentially, a value investor looks for quality stocks that are available at a discount. Such companies are fundamentally strong, have valuable assets and have shown good financial performance.
Investment stalwarts like Benjamin Graham and Warren Buffett have been successful practitioners of value investing. This strategy helps an investor beat the broader markets over time. smallcase offers a number of options based on value investing that investors like Muthu can pick from.
He says that to invest in stocks, an investor needs knowledge, patience and courage. smallcase has helped him with all of that. “My goal is to invest systematically for the long-term and smallcase is just tailor-made for that.”