Any SEBI Registered Research Analyst (RA), Registered Investment Advisor (RIA), Portfolio Manager (PMS), or Brokerage House is eligible to create and manage smallcases as per the guidelines laid down by the Securities and Exchange Board of India (SEBI). Let’s learn more about these smallcase managers.
About smallcase managers
smallcases are created and managed by India’s top stock market experts. They ensure that the constituents in every smallcase pass stringent proprietary filters. So that you don’t have to worry about making individual choices.
Who are these managers?
Any SEBI Registered Research Analyst (RA), Registered Investment Advisor (RIA), Portfolio Manager (PMS), or Brokerage House is eligible to create and manage smallcases as per the guidelines laid down by the Securities and Exchange Board of India (SEBI).
The smallcase managers come from backgrounds of the highest academic and professional credibility. They are managers with degrees from India’s best business and technology institutions. Furthermore, having managed money for corporate giants like JP Morgan, Citi, Kotak, etc.
They use sophisticated quantitative, fundamental, technical, and AI + ML tools to create their smallcases.
Who is a SEBI Registered Investment Advisor?
A SEBI registered investment advisor offers personalized investment advice and portfolio management services to its clients. They are registered with SEBI under the SEBI (Investment Advisor) Regulations, 2013.
A SEBI registered advisor must adhere to stringent guidelines regarding their conduct, charges, and disclosures. They are also required to follow a fiduciary standard. In short, a SEBI investment advisor must act in the best interests of their clients and disclose any conflicts of interest.
Role of SEBI Registered Investment Advisor
- Assessing client needs: A SEBI registered advisor must assess the client’s financial goals, risk tolerance, and investment preferences. In order to develop a personalized investment plan that meets the client’s needs.
- Developing investment strategies: Based on the client’s needs and preferences, a SEBI RIA will develop an investment strategy. This strategy would include asset allocation, diversification, and investment selection.
- Implementing investment plan: A SEBI investment advisor will then implement the investment plan by selecting appropriate investment products, such as stocks, bonds, mutual funds, or exchange-traded funds (ETFs).
- Monitoring and managing investments: A SEBI registered advisor is responsible for monitoring the client’s investments regularly. Additionally, they make adjustments as needed to ensure that the portfolio remains aligned with the client’s goals and preferences.
- Providing ongoing advice and support: The investment advisor must provide ongoing investment advice and support to clients and keep them informed of any changes in the portfolio or market conditions.
Who is a SEBI Registered Research Analyst?
A SEBI-registered research analyst provides research reports or recommendations on securities or investment products to its clients. These research analysts are registered with SEBI under the SEBI (Research Analysts) Regulations, 2014.
Role of SEBI Registered Research Analyst
- Conducting research: A SEBI research analyst must conduct research on various securities and investment products to provide clients with accurate and up-to-date information.
- Analyzing market trends: The SEBI registered RA must analyze market trends, company financials, and other relevant information to develop insights and recommendations for clients.
- Preparing research reports: Based on their research and analysis, the SEBI research analyst must prepare reports that provide clients with information and insights on various securities or investment products.
How do smallcase managers create smallcases?
Now that we know who smallcase managers are, let’s peek into the process of how our smallcase managers create these smallcases:
- The first thing the research team evaluates is whether an investment objective has a large enough investable universe to choose from, i.e. enough stocks to invest in.
- Since each smallcase tracks a different theme/strategy, the exact methodology used to create every smallcase varies.
- You can check the methodology on the smallcase profile page by clicking “Methodology”.
- When you invest in a smallcase, you are investing in a portfolio that follows a systematic and rules-based approach. Further using measurable data such as price, volatility, earnings, etc., ignoring any subjective opinions.
- Data eliminates any biases, impacting all investors, including fund managers.
- In addition, a rules-driven strategy has no room to react to short-term news and events, keeping in mind the long-term objective.
smallcase provides technology solutions and related back-end infrastructure via its “Publisher” platform to all SEBI registered intermediaries and other third parties for facilitating the creation and management of smallcases.
How do smallcase managers make money?
Once their smallcases are published, the investor can subscribe to any manager by paying a “subscription fee.” The managers charge this fee in exchange for providing their expertise in building your portfolio.
This subscription fee can be a fixed amount that is charged either quarterly, half-yearly, or annually. Paying this fee enables the investors to access the constituent stocks/ETFs of that manager’s smallcases and invest in them. This fee is decided and charged by the managers themselves.
5 Best smallcase managers of 2023
Here are the top smallcase managers and their offerings:
The SEBI-registered research analyst (Reg no. INH200007645) is a wholly owned subsidiary of smallcase Technologies Private Limited and was our first featured smallcase manager. Since then, Windmill Capital has created over 50+ thematic portfolios primarily based on asset allocation, factor-based, and smart beta portfolios.
A SEBI registered investment advisory (Reg no. INA100015717) founded by Sonam Srivastava. The Wright Research team is focused on bringing a quantitative investing revolution to India. With decades of experience, their expertise in quant, AI, and finance adds the cherry on the cake. They are driven by their purpose of democratizing access to AI and quant-driven investment products for everyone.
The SEBI-registered research analyst (Reg no. INH100008513) believes in buying quality and growth companies at a reasonable price. The core value at Green Portfolio is to create long-term, sustainable investment management solutions. Systematically through discipline, passion, innovation, integrity, customer focus, teamwork, and continuous improvement.
This SEBI registered Investment Advisory Firm (Reg No. INA000008552) has been practicing Equity Research and Investment Advisory for the last 10 years! Value growth lies at the heart of the investment philosophy at Niveshaay. The team believes in exploiting short-term market opportunities and taking cyclical advantage of any industry trend to reap its full potential.
This SEBI-registered research analyst (Reg No. INH100008717) has become synonymous with “momentum investing” over the years. The core philosophy at Weekend Investing follows the paradigm of “Bhav Bhagwan Che”—price is God.
Now that you know all about who’s creating and managing your portfolios, let’s get to what’s next. Getting started with your investing journey is possible in 3 easy steps:-
- Choose a portfolio: Out of the 500+ readymade portfolios here on smallcase, you can pick a portfolio that matches your investment objective. This portfolio can be around an idea you strongly believe in.
- Subscribe to the manager: Subscribe to the smallcase manager to get access to the constituents of your portfolio and any other future updates.
- Invest and relax: Invest in your desired portfolio, and you are done! You can also set up SIP for disciplined investing or choose to get regular updates on Whatsapp.
To Wrap It Up…
When considering smallcase investments, it is natural to be curious about the smallcase managers who curate and create these portfolios for investors. Our comprehensive guide on smallcase managers aims to explore all relevant aspects that might help you understand smallcase managers and their methodology better, including the benefits of SEBI registered analysts curating the stock portfolios. Investors doing their own research on these managers is the right path to take when considering smallcase investments as a beginner.
smallcase managers do all the efforts on your behalf. So, you pay them some charges that are known as subscription fees. These fees for smallcases are nothing but the charges that you are paying to smallcase managers for their research.
smallcase managers come from backgrounds of the highest academic and professional credibility. They are managers with degrees from India’s best business and technology institutions. They have managed money for corporate giants like JP Morgan, Citi, Kotak, etc. Portfolio Manager (PMS), or Brokerage House is eligible to create and manage smallcases as per the guidelines laid down by the Securities and Exchange Board of India (SEBI).
smallcase makes money by charging a subscription fee to its users. The subscription fee is paid to the smallcase manager. This manager is responsible for creating and managing the smallcase. Furthermore, smallcase also generates revenue from transaction fees, which are charged when users buy or sell smallcases.
smallcase has partnered with top Indian brokers like Zerodha, Upstox, Kotak Securities, HDFC Securities etc. Learn more to kickstart your journey on smallcase!
SEBI-registered entities such as Investment Advisors and some of the best SEBI registered Research Analysts create smallcases.
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