SMALLCASE Better than Mutual funds? Everything You Need To Know (w/ English CC)

2 popular choices that have gained significant attention are smallcase and mutual funds. Both smallcase and mutual funds offer investors unique opportunities to diversify their portfolios and potentially achieve their financial goals. In this detailed YouTube video, we delve into the differences and similarities between smallcase and mutual funds, providing viewers with a comprehensive understanding of these investment vehicles.

Understanding Smallcase:
To kick off the video, we begin by explaining the concept of smallcase. A smallcase is a basket of individual stocks or exchange-traded funds (ETFs) that are carefully curated and grouped together based on specific themes or investment strategies. These themes could range from sectors like technology or healthcare to strategies like value investing or growth investing. Smallcases are essentially pre-built portfolios that provide investors with an easy and convenient way to invest in a diversified set of stocks aligned with their investment preferences.

Mutual Funds: An Overview:
Next, we move on to discuss mutual funds. Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities. These funds are managed by professional fund managers who make investment decisions on behalf of the investors. Mutual funds are typically categorized based on their investment objectives, such as equity funds, debt funds, balanced funds, or index funds. They offer investors the advantage of professional management, diversification, and liquidity.

Key Differences Between Smallcase and Mutual Funds:
In this section, we highlight the key differences that set smallcase and mutual funds apart:

a. Structure: Smallcases are structured as portfolios of individual stocks or ETFs, whereas mutual funds are structured as a pool of money invested in various securities.
b. Management: Smallcases are self-managed, allowing investors to have control over their investment decisions. In contrast, mutual funds are professionally managed by fund managers who make investment choices on behalf of the investors.
c. Flexibility: Smallcases offer investors the flexibility to customize their portfolios by adding or removing stocks or ETFs. Mutual funds do not provide this level of customization, as investment decisions are made solely by the fund manager.
d. Cost Structure: Smallcases typically have lower expense ratios compared to mutual funds, as they do not involve the active management fees associated with professional fund management.
e. Minimum Investment: Mutual funds often have minimum investment requirements, whereas smallcases usually have no minimum investment threshold, allowing investors to start with small amounts.

Similarities Between Smallcase and Mutual Funds:
While there are notable differences, smallcase and mutual funds also share some similarities:
a. Diversification: Both smallcase and mutual funds offer investors the advantage of diversification, spreading investment risks across multiple securities.
b. Accessibility: Smallcases and mutual funds are easily accessible to individual investors, with the ability to invest through various platforms, including online brokerages or asset management companies.
c. Investment Themes: Both smallcases and mutual funds can be tailored to specific investment themes, enabling investors to align their portfolios with particular sectors, strategies, or market trends.

To conclude the video, we summarize the key points discussed, emphasizing that smallcase and mutual funds are two distinct investment options with their own advantages and considerations. Smallcases offer customization and lower costs, while mutual funds provide professional management and diversification. Understanding the differences and similarities between these investment vehicles empowers investors to make informed decisions based on their financial goals, risk tolerance, and investment preferences.

Disclaimer: The information provided in this video is for educational purposes only and should not be considered as financial advice. It is essential to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.

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[Sharvinsai]

initially I thought yet another small case promotion video, but you nailed it. Thanks for comprehensive and profound explanation. Please continue your great work

[GaneshPerumal-qtly]

No words. Wonderful❤❤❤❤❤❤❤...so simple and clear...There is God and I see him through you...there is God and he is gonna be with you....There is God and it is you....what more to say!!!! THANKS A LOT❤❤

[MaduSudananB_N]

Small case disadvantages

- Tax disadvantages. This is a huge issue. One of the core reasons why Mutual funds is preferred.
- CAGR calculation in smallcase is not accurate. It is done by a combination of back testing (Which brings in hindsight bias) and short term returns (subject to mean reversal)
- Not enough SEBI regulations. This is both advantage and disadvantage.
- Prevents LTCG tax harvesting. When we rotate/rebalance stocks then it comes under our name which prevents us from doing LTCG tax harvesting.

Given all these, its better to stick to mutual funds.

[azar_ajju]

Nannum Starting yelarmariyum neghelum small case ku marketing pandrighe nu nenache, but in the last, as bushan touch you nailed it man with your justice ending thank you brother keep going 😊

[manikandan-k]

Crisp and clear. I saw so many videos to understand the smalllcase but you are the one make it very clear. Thanks for your help in creating awareness to the people.

[lokashlokash]

1. Obvious prospects for physical growth in a business do not translate into obvious profits for investors.
2. The experts do not have dependable ways of selecting and concentrating on the most promising companies in the most promising industries.
-Benjamin Grossbaum

So its hard tell which company gonna make profit from green energy sector🙌

[mahendran]

Bro, unlike a yet another channel the value that you provide is phenomenal ❤

[deepakk]

Boosan looks like actor vishal brother. But his way of conveying the content is really amazing and very detailing explanation. Keep doing such informative videos

[vinothjijan]

Fantastic comparison, it's helpful in selecting the right product

[balachandran]

Waiting for long time for new video BOOSAN anna

[DeepakKumar-ixpt]

Nice explanation bruh... Very confused about the smallcase concept but ur video cleared all the doubts.

[niveditha_giridharan]

Simplified explanation..I was searching to know about small cas including the difference to mutual funds...thanks❤

[Shawshunkredemption]

Iam really inspired by him. Super knowledge for you bro. All the best ❤

[ssskvy]

Crystal clear explanation. Bro more explore need about mutual fund best investment option

[gokulakrishnan]

Bro neega clear neraiya content thariga ❤❤❤

[dtn]

Good video bro... I got clarified difference between Mutual Funds and Smallcase and it's really helpful to invest....

[manojrajendran]

Very Informative... I feel we can experiment small case with some portion of our funds and learn the stock picking. For me it will be guide for managing the indvidual stocks on when to buy and when to sell. As you suggested ppl who don't have deep knowledge should stick on with mutual funds and index funds.. Great videos Kudos!!!

[rakya]

Hi boosan bro accidentally i came across your video in YouTube was going through all your content later realized that your the channel i was looking for now subscribed and following u for financial knowledge your contents are too good plz do maintain the same momentum will help to share your contents to my fellas too
Love 4m TN😊

[sathyanarayanan]

Thanks for the clear explanation.. Is it safe to invest in SIP format?? what will be the lock-in period for smallcase stocks??

[lakshminarasimhannarasimha]

Thank for the information. Very useful for common investors like me