Smallcase vs Direct Mutual fund vs Individual Stocks Vs ETF

Hi guys
Which one to choose , let us share your views on comparing both. So I can choose one start to investing. My understanding both are bunch of holdings with some difference in charges (like Exit load, brokerage or any form of fee).
Need experts opinions on choosing one based on low fee for both short & long term.
Should I choose equity delivery at zero brokerage or small case or direct mutual funds ?
Which one is cheap & best for capital less than 1L

Hi @Prabhu_N
According to me, small case is giving better returns compared to mutual funds. But mutual funds play important role and ZERODHA will come up with many more advantages investing in mutual funds. If you are looking for long-term and risk-free one should go with mutual funds and if you want good returns in short term, one can opt for the small case.


How did figure out that smallcase is for short term??

Hi @sabyasachi_sadhu
as you can go through the small case the returns given by some of the smallcase are above 15-30% return in the month so for short-term investment, I would suggest it.

Yes you are correct but sir that’s not possible always and I know some Mutual Funds based on small cap too can generate 10-12% return in a month before deducting expense ratio of course. Investing in Smallcase is same in investing in fundamentally strong stocks so keeping Smallcase for longer period is best strategy in my opinion.

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yes you can opt for long term also.

If you are a confused investor, then I would suggest to start investing in a mutual fund via SIP through COIN. Mutual funds are managed by fund managers who are experienced in analysing and investing in different securites like equity, debt or money market instruments. As your investing journey continues to grow, you can read and learn about investing in stocks through our various knowledge portals like TradingQnA and Varsity.

When you have built a sufficient corpus for yourself and generated decent returns from your mutual fund investments, you could then decide to invest some of these returns directly into stocks based on your analysis or through smallcase.

Please treat this as a suggestion and not an advise :wink:


Do you think smallcase charges is less when compared to equity delivery for the same set of stocks ?
I saw smallcase charge flat fee 100 + DP charges + STT similar to equity trading

Can we choose ETF like Bharat 22 instead of investing in smallcase or Mutual fund which one cost less. & Better returns

Hi @Prabhu_N yes u can invest in bharat22.
the advantage of investing in small case is that if any of the stock in the basket is not performing well. small case will notify you to get it changed using REBALANCE option in the small case so making good returns in small case in more then bharat22.


Even small case will help in generating good returns in long term also. Depends on which case you select and how you manage. Invest with discipline and for a long horizon , I feel small case will really give a good returns over MFs. Moreover small case is much more cheaper than MFs. @Prabhu_N


That’s good suggestion thanks but yes I do read (min 4 hours a day and become a little wiser each night before sleeping :wink:) extensively and I have enough knowledge in subjects about investing particularly value investing so I research myself and then decide to invest in those stocks where I get margin of safety, now about smallcase, yes I like the procedure/methods of selecting stocks for a particular purpose(thematic/sectoral) and its very effective. I do invest in Mutual Fund, FD, SGB, liquid funds for the sake of diversity.

Why do you have to pay to smallcase if they don’t (actually can’t) trigger the order for you.
You can see the stocks suggested by them, why not buy yourself instead of paying them Rs 100?

Good. India needs such investors @sabyasachi_sadhu

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I can place order myself but trying to justify which one was best in terms of charges like STT,turnover charges,etc based on that criteria ( cheaper one ) Am asking which one to purchase ( ETF or Mf or Stock indivudals or smallcase)

@faisr @nithin
A quick suggestion for Coin.

Usually, people who wish to invest in equities but do not have time & knowledge to invest directly, take Mutual Funds route.

The first thing they do is to check Crisil Ranking, Risk Involved (Low, Average, High) and Reward Level (Low, Average, High). Currently, I do that on Value Research.

It would be nice if Coin had this info on the platform itself.

It would be nice if you can specify if a particular scheme invests in Large Cap, Small Cap, Mid Cap etc rather than just the higher level type of the scheme (Debt, Diversified, ELSS, etc).

I would be nice if you can show peer comparison as well. I know we can manually do that with two other schemes but if Coin can pro-actively show that, it would be even easier for investors.

Lastly, Coin should come up with bundles like what Smallcase does.

Eg. “Conservative Investor” which has 1 Large Cap, 1 Balanced and 1 Multi-Cap, etc. So it takes away thinking part from the investor. They can trust your recommendation and go for it.


Costs aside, the choice depends upon the time you are willing to invest in researching for investment ideas.

Mutual Fund = Someone else does your work, its like appointing a manager. But it costs highest among the options

Small Case = Needs little of your time and efforts. Costs are dependent upon the amount invested (Paying 100 rs service cost and buying stock worth 200 rs means 50% cost)

ETF = Someone else does your work, similar to MF, costs much less than MF

Equity Delivery: Needs most of your time. Its more or less like gardening. Costs less than MF & SF


Can I conclude ETF is better alternative for MF & Equity Delivery is better than Small case in terms of fee & Choice depending on way of managing portfolio (they does our work or I do myself) ?

In india, MF is way better then ETF.

Equity is always better if you can manage your risk. Time is more valuable in equity markets than money and the longer you stay the greater the chance of winning in equity markets.

In long run costs, fees, taxes do matter. One wise man rightly said

on an average active investment beats passive investment in India – BECAUSE THE INDEX IS poorly constructed

there is no reward without risk, your taking risk DOES NOT entitle you to reward, hey, that is risk!

my 2 paisa

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ETF is better than other MF

Better is a subjective term. If you consider Lower Risk as better than yes, ETFs are better but at the same time returns are not as high as other equity funds.

Equity Delivery is better than Small case

You save Rs 100 + GST if you buy Stocks yourself instead of doing it via Smallcase. You can always see what their research says and buy them yourself.

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