Smallcase vs Direct Mutual fund vs Individual Stocks Vs ETF

[Prabhu_N]

Very useful information thanks.

[stockadda]

You are almost right in your conclusion. But there is one small hitch. The universe of MF is quite large and you can choose as per your liking eg… I want exposure only to small caps or I want only exposure to service sector or export oriented cos etc etc…
So in case of mfs you can diversify and make choices which suites your risks better.

ETF on the other hand do not have such a large range of options.

With Equity Delivery you can be your own cook.

If learning is one my objective I’ll surely choose equity delivery by investing in small chunks and taking lessons along the way.

All the best.

[Dr_KP]

Your investments should be balanced. Smallcase may give you much higher returns than Mutual Funds but risk is also high. So Invest some fix amount in MF every month and then play in Stocks. Smallcase is definitely a wonderful option.

[shiiromani]

Is smallcase is really better than mutual funds? I know the mutual funds are managed by fund managers with proficient skills but who create smallcases and how much we can rely on the specific smallcase. I mean I really like the idea of investing through smallcase but it just makes me think how to rely on its management. Is it safe to invest through smallcase? If I just purchasase Smart Beta- Low risk and leave it for years and years… Will it be Okay??

[sudheer_kumar]

@shiiromani

Is smallcase is really better than mutual funds?

If you are talking about performance,you can check the smallcase performance against similar mutual which shares a common benchmark(nifty50,nifty Midcap,Nifty small Cap etc.

@shiiromani

but who create smallcases and how much we can rely on the specific smallcase.

)These are also created by the small case team who are SEBI registered research analysts.

@shiiromani

f I just purchasase Smart Beta- Low risk and leave it for years and years… Will it be Okay??

It all depends on your risk apetite ,your target that you want to achieve and what you are expecting out ff a specific small case.

One thing i observed with small case is that it has relatively lesser number of stocks in their portfolio compared to MF.Not sure how much of this impacts the returns,but just an observation from me.

[HSL]

what is smallcase ?

[Bhuvan]

Have you heard of Google?

[U_will_die_once]

Here you go

[shiiromani]

[shiiromani]

Thnkuu sudheer bhai. And Plz can anybody help me to understand ETF more… Why AMC created ETF, how do the AMC earns from ETF, I mean ETF dont have any expense ratio, what is the benefit to AMC if we buy the their ETF… ? (few more question might come after getting the answers I watch many videos of etf on youtube and for short, it is a fusion of stock and mutual fund but why AMC create the ETF is they wont be earning expense ratio and exit load) why why why? plz somebody enlighten me

[sudheer_kumar]

I am not a professional by any chance to explain this …may be other can pitch in.Meanwhile suggest you to subscribe to learnapp .I think they have done some beautiful courses to understand all these concepts.

[shiiromani]

Thankyou bhai… I have the app installed since a longtime but didnt subscribed … But yeah now I will consider it.

& If anyone can help me to understand my above query… So plz… would be very helpful…

[Bhuvan]

Can you post that as a separate question, I’ll answer it. Seems a little out of context here.

[HSL]

How do i redeem smallcase?

[shiiromani]

oh sure sir… i’ll copy and paste my question from above…

Why AMC created ETF, how do the AMC earns from ETF, I mean ETF dont have any expense ratio, what is the benefit to AMC if we buy the their ETF… ? And since everyone knows Index fund are better than most mutual funds then why people dont buy the ETFs which provides more liquidity and lower expenses (few more question might come after getting the answers I watch many videos of etf on youtube and for short, it is a fusion of stock and mutual fund but why AMC create the ETF if they wont be earning expense ratio and exit load) why why why? plz somebody enlighten me

[Bhuvan]

An ETF for your undersatnding is a mutual fund that trades on the exchange. This should give you a basic idea:

What is an ETF and how does it work?

Edelweiss is set to launch a debt ETF that will only hold bonds issued by public sector undertaking (PSUs). Before I explain more about the ETFs, a few basics. What is an ETF? An ETF or exchange traded fund is a mutual fund that trades on the exchange just like a stock. Most ETFs are passive ETFs and they replicate an index. For example, a Nifty 50 ETF holds the shares in it But the key difference is how ETF units are created. When you invest in mutual funds, the AMC collects orders till 2 PM…

@shiiromani

I mean ETF dont have any expense ratio

Of course they do but they are cheaper than equivalent mutual funds.

@shiiromani

everyone knows Index fund are better than most mutual funds then why people dont buy the ETFs which provides more liquidity and lower expenses (few more question might come after getting the answers

It depends on the duration of a trade. If you want to express a short-term view or do tactical trading, then ETFs make more sense than index funds because they don’t have any exit loads. You can get in and out of an ETF just like you would a stock.

Having said that, not all ETFs are liquid in India and these are still early days for ETFs in India.

[vishalpuri]

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