As far as I remember, the Coffee Can Smallcase was a 10-year investment plan scheduled for review in 2026 whereas Long-term Smallcase was once-in-a-year re-balancing Smallcase. Why were these discontinued and what are their alternatives?
Did you search the Smallcase website for past data on these plans? Do you know if they were doing well before being discontinued? If they were not doing well, then perhaps that is the reason for discontinuing them? If they were doing well and were still discontinued, that is then a mystery.
lol. a underperforming smallcase is discontinued.
what a shocker.
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There was a tweet by the Windmill Capital regarding the reason behind discontinuing the Coffee Can smallcase -
Its factsheet still continues to be updated.
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hmm… “We found a better product” is odd ball.
this reinforces my poor opinion of smallcase.
they will build smallcases retrospectively by looking at previous prices and allways show fantastic returns.
any long term smallcase which starts underperforming gets cut or modfied to look good for new suckers.
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Returns of Coffee Can Smallcase wasn’t bad, though not as great as other smallcases. The Coffee Can smallcase had these companies:
Some of these stocks gave good returns. A few of them didn’t perform well and PC Jewellers turned into a very bad choice but my back-testing proved that an investment of Rs.2 Lacs in this smallcase on 01-Aug-2016 would make a portfolio value of Rs.4.5 Lacs in August, 2021. This doesn’t make it an underperformer at any standard.
jm1975, you are exactly proving my point.
returns were not great on this coffeecan portfolio, and smallcase discontinued it.
you simply went and chose a random starting point (brexit low) and showed profit.
which is what smallcase do, they choose stocks which made money in the past in all their smallcases, giving an impression that they are geniuses, if smallcase stops making money they will just discontinue it and create something else.
IMO, smallcase is the worst product of all.
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Well absolute numbers in comparing return generally makes no sense.
I did a simple back test of Total return indices of Nifty on same period.
| TRI on 1-Aug-2016 | TRI on 1-Aug-2021 | Initial Investoment | Current Value | |
|---|---|---|---|---|
| nifty 50 | 11612 | 22730 | 200,000.00 | 391,491.56 |
| nifty Midcap 150 | 5759 | 13126 | 200,000.00 | 455,843.03 |
| nifty Smallcap 150 | 5603 | 11319 | 200,000.00 | 404,033.55 |
Frankly returns are almost same as what you would have got by putting money simply in midcap index. And you also need to account for all trading charges for rebalancing, taxation due to rebalancing and fees.
If all is considered, it would make it a underperformer. No wonder it was closed
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Thanks for putting numbers to my thoughts.
Most smallcases are just madeup buckets, with backtest data and zero analysis.
its impossible to tell whether they will perform or not.
for those smallcases, where there is a chance to measure the performance, smallcase just discontinued it to hide their incompetence.
On top of it, the forced rebalance will force you to book losses, and generate tax events.
we are better off with index funds
Smallcase is the future of investing.
That’s a very big money flowing into system. What are they planning?