Understand the terms associated with each smallcase before making an investment.
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 increase in branded goods consumption in India
Volatility: Understanding volatility while investing is as important as analysing returns. Stock prices move up and down on a daily basis, resulting in fluctuating investment value. Each smallcase shows the volatility. You can take an informed decision and prepare yourself for the volatility associated with the smallcase.
CAGR (Compound Annual Growth Rate): CAGR indicates the average yearly return generated by a smallcase since launch. Each CAGR value comes with a time label, making it more contextual. It reflects the time period over which the CAGR for that particular smallcase is calculated. smallcases that have been live for over a year now have an annualised CAGR and live for under a year, will show absolute return values instead of the CAGR.
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: