With strategical approach all of my smallcases are in green.
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I find this case very interesting as it shows how much knowledge is important in financial markets. Inexperienced traders would usually follow any advices and suffer losses, wondering what they did wrong. Rupeshmandal spotted deficiency of the system and stopped using it anymore
Good ! if you apply your strategy it always pays.
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You are absolutely right, until and unless a person have his/her unique style of investing and plan a strategy to figure out whatās the best workout/workaround if your desire goal isnāt happening, instead of panicking take a strategical approach and you will see that the results are now positive.
Mutual Fund redemption costs zero charges now on Coin.
I think to promote smallcase, the trading cost should be removed because in my observation during each rebalance on an average 70-80% of total holding of a smallcase are sold which incurs in a significant amount of trading charges. Instead, if rebalancing charges be made fixed say Rs 50 or Rs 100 per smallcase per rebalance, it would be better for an investor.
What say @nithin @Anugrah @vasanth_kamath?
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You didnāt get the point. MF have a fixed expense ratio. Also while the fund manager is rebalancing, investor is not bothered about it as the fixed expense ratio is taking care of it. But with smallcase having been invested for more than a year and with every rebalance taking away a significant amount in terms of trading charges. So proposing if smallcase rebalance does not incur in per share redemption cost i.e. Rs 13+GST. Instead, if smallcase rebalance cost is fixed, it would lower our expense.
Are you investing in any mutual funds and if yes, then then whatās the expsnse ratio and how does it compare to smallcase costs?
What smallcase team can do about it? Itās all depend upon the depositary, you are just paying a flat fee of meagre amount of Rs. 118(gst included) and you want subsidy? Mutual funds are asking expence ratio year on year, but here in smallcase only once you have to pay.
Please re-read my earlier comment for clarity.
MF have TER and yes they charge year on year but thatās all it is. Investor is not concerned about the rebalances.
Smallcase expenses include one time fee + trading charges on every rebalance and each rebalance is much like 60-80% holding is sold which incurs in a significant amount of trading charges every 3 months.
What I am proposing is a fixed fee per rebalance and no trading charges per script underneath when a smallcase is rebalanced. I am not asking for any subsidy. Of course, how much the fixed cost be, let them decide. By making it a fixed cost per rebalance, it would not only help the investors but also to smallcase.
If the investor does not want to rebalance, it is okay, he can skip rebalance and doesnāt pay anything.
In the long term it would be win-win for both.
Then why donāt you post a comparison of MF vs smallcases in terms of costs?
I think the smallcase team is better equipped to do so with past records of a smallcase rebalance.
Take couple of smallcase with different minimum investments requirement over a period of time say 2 years, one time fee + trading charges on each rebalance + additional fund required at each rebalance to buy.
Now compare it with a mutual fund in similar sector/ domain. And the NAV 2 years back and the NAV now to find the returns if you had invested same amount that you put in that smallcase.
Let the data speak.
Having said that, I have just proposed a fixed cost of rebalance. Now the decision is theirs.
My take on this entire thread - whether you invest in actively managed MF, smallcase, PMS or any other product there is a network of advisors/broker/distributors/AMCs/Exchange/SEBI/Depository/govt etc who earn money from investors so think deep. As an investor you are doing lot of noble work to feed these entities. In the entire process your net returns would obviously drop post expenses/taxes. If you do a comparison between actively managed MF, vs passive index (eg sensex) funds you can see that our fund managers are not able to generate alpha in past 3 - 5 yrs. My past 5 yrs of index investing (using sensex funds, juniorbees ETF) has given an average yield of 30% paā¦i move money from debt to equity in oversold zones & switch back to debt in overbought zones on charts. ā¦for eg yesterday i booked 6% in just a week. guys wake up ā¦simple low risk strategies can produce decent returns. If you donāt believe backtest the index chartsā¦
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Financial independence through oneās own decision making can be done only by a minority of the population.
For the rest of the crowd, all decisions are largely emotional and does not produce sensible returns over long term.
On a longer time frame . for the large majority of the population, the results turn out good, when people do as told by the MF Distributors, Financial advisors, Smallcase Managers, etc etc
That will be very interesting comparison, you can request the smallcase team for the past data, I have for the smallcase āGrowth at Reasonable Priceā from 2014 to 2018. But I am too lazy to calculate.
Just to simplify, on the same point that Rupesh is saying is Mutual funds shows NAV or Return after considering all the costs but Smallcase shows return excluding the costs. There is no point to compare cost separately. True comparison would be returns after including all the costs.
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IS rebalance option there or still need to be added. SUrprised to see that I have to reblance everytime.
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Also, the CAGR mentioned in small case is backtested one. The actual CAGR will be way less. I am only seeing this today. Lets take, https://smallcase.zerodha.com/smallcase/SCNM_0026. The returns are -ve. But the CAGR shown is mind blowing 25%. @Anugrah small case should show what they delivered. There is no option like āSince launchā to track their performance. Fraud, should be reported to SEBI.
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IS it good to invest in smallcase?
Which criteria you use for your overbought and oversold zones .
It that indicator (RSI ) or something else
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