Though I know all the information, I just asked for others to know about it. It will be very helpful if any senior members answer it.
Dipak, Smallcase is a startup who has leveraged Kite connect APIs for startups to build a niche theme based investing platform. So all the backend bits is managed by Zerodha, account opening, execution management systems, compliance, etc etc. Similar to how an Airbnb, uber, oyo etc have built a business by not owning any assets, but only the user experience.
Instead of buying and selling stocks, you buy and sell ideas/smallcases. It is in a way like buying/selling mutual funds without a need of a mutual fund manager, hence making it extremely inexpensive. So more like ETF's, but since in India there are hardly any ETF's, this makes good sense.
You are still buying stocks, so market risk is always there. But since you are buying a portfolio of stocks, there is no individual stock risk. So that way it is safer than buying individual stocks. Check this post that explains more on smallcase.
can I replace or delete some stocks, will they review the performance of smallcase and make changes accordingly?
Does smallcase belong to Zerodha and is it safe as the app asks permissions to access portfolio holdings and access to modify ,cancel order. I am intersted in smallcap but fear to stay away because of these permission issues. could any one at zerodha help?
@nithin, is there any way to hedge out the market risk by shorting futures in small case?
Is there any smallcase which is able to hedge out market risk?