During a rebalance order, some transactions are also suggested in some stocks along with the manager's buy/sell suggestions. This is done in order to match the original portfolio weightage (there could be some minor deviation in weightage due to price hike/fall).

To ensure that users are not incurring unnecessary transaction charges that may arise from rebalance orders and which eat up their profit, the below checks have been added

  • Orders where the buy or sell value for a stock is less than 1% of smallcase net worth or less than ₹500, the stock is ignored from the rebalance order

  • These check are only implemented for stocks which are already a part of your holdings i.e. checks are not applied for fresh buy orders or complete sell orders

  • The check is not applicable when you customise your rebalance order

Eg:

  • Let’s say your current smallcase net worth is ₹8000, post rebalance your updated net worth will be ₹10,000

  • If the buy or sell order generated for any stock is less than ₹100 (1% of ₹10,000) this order will be ignored until and unless that is a complete sell or a fresh buy.

The above checks will ensure users are not incurring unnecessary transactions charges in rebalance orders and at the same time maintaining the smallcase investment strategy prescribed by the manager

Further reading:

How do I rebalance my smallcases?

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