What is the ideal composition for a smallcase?
Angith avatar
Written by Angith
Updated over a week ago
  • Every smallcase has an ideal weighting scheme, defined on the “Stocks & Weights” tab

  • For created/custom smallcases, you define this while saving your draft. If you have started an SIP, this weighting scheme is referred to as the “ideal composition”

  • With time, as prices change, the constituents will deviate from the ideal composition. Our algorithm compares your current constituents with the ideal composition to find the constituents that deviate the most

  • The SIP amount is first invested in stocks where the weightage might have reduced. With every instalment, the algorithm ensures your constituents try to match the ideal composition in the long run.

Did this answer your question?