Smallcase, backed by Zerodha launches thematic investing for concentrated bets

MUMBAI: The innovation bug has caught brokerages as well, with the launch of products that enable investors bet on market ‘themes’. Smallcase, a startup backed by discount brokerage Zerodha has launched thematic groups like ‘GST basket’, ‘monsoon cheer’, ‘rural demand’.

A thematic basket consists of stocks in different proportions, which can gain most if the bet on the theme plays out.

Smallcase is the first thematic investing platform for India. “Each such basket is an intelligently-weighted portfolio of stocks that is based on a trending market idea or theme,” says Vasanth Kamath, founder, Smallcase.

For example, the ‘Incredible India’ basket consists of four sectors namely airlines, healthcare facilities, leisure facilities and hotels. At the click of a button you can buy the incredible India basket which has Interglobe Aviation (1 share), Narayana Hrudalaya (4 shares), Apollo Hospitals (1 share), Indian Hotels (11 shares), Mahindra Holidays (3 shares), Byke Hospitality (8 shares) and Wonderla Holidays (3 shares).

Kamath said such concentrated bets can help investors outperform the market. In the past one year, the Incredible India basket has given a return of 25.61% as against the Nifty return of 1.9%.