Smallcases are a new way to invest in theme-based stock baskets. But they aren’t free of costs or risks. In this 2025 review, we break down fees, hidden charges, risks, and how to exit without surprises if you decide to move out of a portfolio.
India Snapshot
- Minimum Investment: ~₹5,000–₹10,000.
- Brokers Supported: Zerodha, Upstox, Angel One, HDFC Sec, ICICI Direct.
- Fees: One-time buy + annual subscription (₹349–₹999). Brokerage & taxes extra.
- Payments: UPI, NetBanking, Cards.
- GST Invoice: Yes, on subscription.
- Best For: Investors seeking thematic, long-term exposure.
Explore smallcases with your existing broker:
Check Zerodha Smallcases | Try Smallcases on Upstox
Fees Explained
- Brokerage: Standard charges (₹20/order intraday; ₹0 delivery on most brokers).
- Smallcase Fee: ₹349–₹999/year per theme/portfolio.
- Exit Costs: Normal brokerage + STT + GST.
- Hidden Costs? None—transparent billing via broker.
Risks You Should Know
- Volatility: Returns mirror underlying stocks; no guarantees.
- Over-concentration: Some smallcases are too sector-heavy.
- Liquidity: Low-volume stocks may affect exit pricing.
- Rebalancing Reliance: Requires discipline—if you skip, you miss the strategy.
Pros and Cons
Pros
Direct ownership of stocks.
Professionally curated portfolios.
Easy rebalancing via app.
Available through top brokers.
Cons
Subscription fee adds up.
Not as diversified as mutual funds.
Can be volatile for beginners.
How to Exit Without Surprises
- Log into broker (e.g., Zerodha/Upstox).
- Choose Exit Smallcase → sell all or partial holdings.
- Watch for brokerage, STT, GST on each transaction.
- Ensure exit liquidity—don’t dump low-volume smallcases all at once.
- Confirm final portfolio closure in broker dashboard.
Start investing in curated smallcases with top brokers:
Explore Smallcases
In 2025, smallcases remain a smart tool for thematic investing in India. They’re transparent, easy to manage, and fit long-term portfolios. But don’t treat them as “mutual funds with better returns”—they carry risks, subscription costs, and require discipline in rebalancing. If you enter with eyes open, they can be a great way to ride India’s megatrends.
