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What factors should I judge a smallcase on?
What factors should I judge a smallcase on?

Investment objective, volatility and returns

Rahul Satish avatar
Written by Rahul Satish
Updated over 8 months ago

Understand the terms associated with each smallcase before investing.

  • Rationale: Each smallcase has a principle or reason to help you understand why you should invest in it. Eg: Brand Value smallcase consists of companies that will benefit from an increase in branded goods consumption in India

  • Volatility: Understanding volatility while investing is as important as analyzing returns. Stock prices move up and down daily, resulting in fluctuating investment value. Each smallcase shows the volatility. You can make an informed decision and prepare yourself for the volatility associated with the smallcases.

  • CAGR (Compound Annual Growth Rate): CAGR indicates the average yearly return generated by a smallcase since launch.

  • Minimum Investment Amount: It suggests the minimum amount required to invest in all constituents in the prescribed weighting scheme. Watch this video to understand more

Further reading:

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