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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 a week ago

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:

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