Smallcase Charges, Rebalancing, Minimum Investment & Complete Guide

 

Smallcases have become a popular way for beginners and busy investors to invest in expert-curated portfolios. But most people still have many questions:

✔ What are the charges?
✔ Are there fees while selling?
✔ Is rebalancing mandatory?
✔ What’s the minimum investment?
✔ How are smallcases different from mutual funds?
✔ How to track smallcases on Zerodha?
✔ What does the “Subscribe” button mean?

This guide answers all these questions clearly.

---

1. Charges When You Invest in a Smallcase

Smallcase investing charges depend on your investment amount.

A. Investment Less Than ₹4,000

You pay:

2.5% of investment amount + GST

Example:

• Invest ₹2,000 → 2.5% (₹50) + GST
• Invest ₹3,000 → 2.5% (₹75) + GST

---

B. Investment ₹4,000 or Above

A flat ₹100 + GST is charged.

Example:

• ₹10,000 investment → ₹100 + GST
• ₹1,00,000 investment → ₹100 + GST
• Even ₹10,00,000 → still only ₹100 + GST

✔ No percentage charges beyond ₹4,000
✔ No hidden fees from Smallcase itself

---

2. Charges When You Sell a Smallcase

Technically, Smallcase does not charge anything when you sell.

But remember:
Selling a smallcase = selling stocks.
So normal taxes apply, just like shares.

A. Short-Term Capital Gains (STCG)

• If sold within 1 year
• Tax = 15%

B. Long-Term Capital Gains (LTCG)

• If sold after 1 year
• Tax = 10%
• Only applicable if LTCG exceeds ₹1,00,000 per year

Dividends

You receive dividends normally (since you own stocks).
Dividend tax applies as per your slab.

---

3. Is Rebalancing Mandatory? Are There Extra Charges?

Is rebalancing compulsory?

❌ No.
A rebalancing email is sent → You can Accept or Reject.

Does Smallcase charge for rebalancing?

❌ No fee by Smallcase.

But will there be brokerage/taxes?

✔ Yes — because rebalancing = buying/selling stocks.

You pay:

• Normal brokerage (if applicable)
• STCG/LTCG if gains occur
• Other statutory charges

---

4. What Is a Smallcase? (Quick Explanation for Beginners)

A smallcase is a basket of stocks based on a theme, such as:

• Electric Vehicles
• Top 100 companies
• Dividend growth
• Value and Momentum

Example:
The Electric Mobility smallcase includes only EV-related companies like Amara Raja Batteries, Motherson, Endurance, etc.

Who creates these baskets?

✔ SEBI-registered Research Analysts
✔ SEBI-registered Investment Advisers

Example: Windmill Capital manages 40+ smallcases.

---

5. Minimum Investment for Smallcases

Smallcases do not have a fixed minimum, but each smallcase has its own starting amount.

To find low-amount smallcases:

1. Go to Discover
2. Select All Smallcases
3. Use the filter Investment under ₹5,000

Examples:

• Some start at ₹270
• Some start at ₹1,015
• Many start between ₹3,000–₹5,000

✔ Minimum varies based on stocks & weights
✔ Amount may change over time

---

6. Brokers That Support Smallcase

Smallcase works with many major brokers in India.

Some include:

• Zerodha
• HDFC Securities
• ICICI Direct
• Axis Direct
• 5Paisa
• Groww
• Dhan
• Upstox

…and many more.

Full list available on smallcase.com → “Supported Brokers”.

---

7. Mutual Funds vs Smallcases — Key Differences

Feature	Mutual Fund	Smallcase
What you own	MF units	Actual stocks
Who rebalances	Fund manager (no permission)	You decide Accept/Reject
Tax during rebalancing	No tax for internal changes	Tax applies (stock sale)
Brokerage	None	Charged on every buy/sell
Exit load	May apply	None
Theme flexibility	Limited	Very customizable
Transparency	Holdings disclosed monthly	100% transparent always

Smallcases offer more control & transparency, but mutual funds offer simplicity & lower transaction tax impact.

---

8. Can You Track Smallcases on Zerodha App?

❌ Not on Zerodha mobile app
✔ Only on Kite web-based platform

How to track:

1. Login to kite.zerodha.com
2. Go to Holdings
3. Use the dropdown:

• All stocks

• Smallcase stocks only

You will see:

• Total investment
• Current value
• Day’s P&L
• Total P&L

---

9. How to Create Your Own Smallcase

You can create a personalised basket:

1. Open smallcase → Create
2. Add stocks
3. Define weightages
4. Save your smallcase
5. Enable SIP if you want automatic monthly buying

You can also share it with friends via a link.

---

10. Why Some Smallcases Have a “Subscribe” Button Instead of “Invest”?

Smallcases come in two types:

A. Normal Smallcases → “Invest Now” button

You can:
✔ See stock list
✔ See weights
✔ Invest immediately

B. Premium Smallcases → “Subscribe Now” button

You cannot see stock list until you subscribe.

Why?

Because:

• A SEBI-registered research analyst manages it
• Detailed research & updates are provided
• Subscription fee is charged for their expertise

Can you subscribe but choose not to invest?

✔ Yes, subscription does NOT force you to invest.

---

Conclusion

Smallcases are a powerful way to invest in expert-curated stock baskets with transparency and control. But understanding:

• Charges
• Taxes
• Rebalancing
• Minimum investment
• Differences vs mutual funds

…is essential before you begin.