Who are smallcase Managers and How Do They Create smallcases?

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). 

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 smallcase 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. These managers have degrees from India’s best business and technology institutions. Moreover, they have managed money for corporate giants like JP Morgan, Citi, Kotak, etc. 

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 also have 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. It will help them 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. The strategy will 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, etc.

• Monitoring and managing investments: A SEBI registered advisor is responsible for monitoring the client’s investments regularly and making adjustments as needed. It will help them 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. They should also 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. It will help them 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. By doing this, they will be able to develop insights and recommendations for clients.

• Preparing research reports: Based on their research and analysis, the SEBI research analyst must prepare detailed reports. It will help them to 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 check out 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 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 the managers publish their smallcases, 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:

Windmill Capital

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.

Wright Research

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.

Green Portfolio

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 through discipline, passion, innovation, integrity, customer focus, teamwork, and continuous improvement.

Niveshaay

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.

Weekend Investing

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.

What next?

Now that you know all about who’s creating and managing your portfolios, 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 and is 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.