The article covers in detail how to implement required changes for existing smallcases from the publisher platform for the following:


  • Adding Investment Horizon

  • Updating Methodology

  • Updating smallcase names to be “True to Label”


For new smallcases, the changes have already been incorporated in the smallcase creation journeys on the platform.


For existing smallcases:


  • The changes can be made from the publisher platform starting from 20 January

  • The last date to make and save the relevant changes is 13 February

  • Please make all required changes by 13 February to ensure smallcases remain listed on the smallcase app and website

  • All changes made between 20 January and 13 February will be visible only on the publisher platform. The changes will start reflecting to the users on microsite, smallcase app and website post 13 February.

  • To assist with required changes, you can take help of the following icons for existing smallcases:

    • ⚠️ - This icon notifies all smallcases and components within the smallcase where changes are required

    • ✅ - This icon notifies all components and/or smallcases where changes have been made


ℹ️ NOTE: Investment horizon, methodology and smallcase name updation need to be done together for any existing smallcase. Please make sure you have all of these details ready for an existing smallcase before making changes from the platform.
You can also refer to the following video which covers how to make all necessary changes on the platform: Video


The article also covers how asset class and comparable index for all smallcases will be determined and showcased to the user


Adding Investment Horizon

For all smallcases, it is now mandatory to provide a recommended investment duration. One of the following can be chosen as the investment horizon for each smallcase


  • Short Term: For a smallcase with recommended investment duration of <1 year

  • Medium Term: For a smallcase with recommended investment duration of 1-3 years

  • Long Term: For a smallcase with recommended investment duration of >3 years


This can be added for all smallcases via My smallcases -> Manage -> Meta tab -> Investment Horizon dropdown



Updating Methodology

For all smallcases, it is now mandatory to provide a detailed methodology for constituent selection such as fundamental analysis, technical analysis etc. and the parameters therein.


Currently, the methodology has default copies which are already present for existing smallcases. The current copies will show up as a grey text in the methodology. Methodology can be updated for all smallcases via My smallcases -> Manage -> Methodology tab. 

The updated methodology will start reflecting to users as soon as changes are saved from the publisher platform.


For new smallcases, going forward it will now be mandatory to add custom methodology before the smallcase can be published. Methodology can be added in the same way mentioned above.



Updating smallcase names to be “True to Label”

As per the recent guidelines, all smallcase names should be “true to label” and named in a manner which clearly specifies the type of portfolio being created.


Thus, the smallcase name will now have 2 components:


  • Custom part: This can be added from the publisher platform

  • Standard suffix: Each smallcase will have a standard suffix which is dependent on the type of smallcase being selected


Changing names for existing smallcases

For existing smallcases, the name can be changed via My smallcases -> Manage -> Meta tab -> smallcase type dropdown and name.

The existing smallcase name will show up in the first part of “Your smallcase name”. To change the smallcase name as per the new structure, follow the steps below:


STEP 1: Select the smallcase type

For each smallcase, a type can be selected from the “Select smallcase type” dropdown. Depending upon the type selected, the suffix will automatically get added to the smallcase name and be shown in the second part of “smallcase name”.

The various types and their corresponding suffixes are as follows:


Type

Definition

Suffix

Thematic

A “Thematic” smallcase is a collection of stocks/ETFs/MFs, focused on a specific macro trend, sector, or theme.

Ex: collection of companies getting benefited by energy mix shifting towards renewable sources OR companies getting benefited from increased adoption of luxury products & services etc.

Theme

Sector Trackers

A "Sector Tracker" smallcase is a collection of stocks/ETFs/MFs, focused on companies within a specific industry or sector which is designed to reflect and track the overall performance of that sector.

Ex: collection of companies from the banking sector or technology sector. 

Tracker

Target Date

A "Target Date" smallcase is a collection of stocks/ETFs/MFs which matures on a specified future date. 

Ex: a collection of ETFs to maximize returns using a strategic asset allocation mix on a future date. 

Target Date

Smart Beta

A “Smart Beta” smallcase is a collection of stocks/ETFs/MFs from a specific segment of the market to outperform traditional market-cap-weighted indices representing the same segment. 

Ex: a collection of stocks from top 50 marketcap stocks, using relative momentum to outperform marketcap weighted index (like Nifty 50) representing top 50 stocks

Smart Beta

Quantitative Model

A “Quantitative Model” smallcase is a collection of stocks/ETFs, selected and managed based on systematic, data-driven models that leverage mathematical, statistical, and algorithmic techniques to optimize selection decisions and achieve specific objectives.

Ex: a collection of stocks basis technical factors like RSI and weighted using quant methods like sharp ratio maximization

Quant

Factor*

A “Factor Model” smallcase is a collection of stocks/ETFs/MFs, selected based on specific factors such as momentum, value, quality, or size, aiming to capitalize on these targeted drivers of performance.

Ex: a collection of companies which ranks high on the “value” factor. The value factor could be formed using a variety of method and indicators like P/E, P/B, P/S etc

(custom factor added) + Model

Fundamental Model

A "Fundamental Model" smallcase is a collection of stocks/ETFs/MFs, selected based on fundamental analysis, focusing on metrics such as financial performance, PAT growth, revenue growth potential, and industry conditions to identify good investment opportunities.


Ex: a collection of companies chosen on the basis of bottom up fundamental approach and projections.

Fundamental

Mixed Model

A "Mixed Model" smallcase is a collection of stocks/ETFs/MFs, based on a combination of multiple factors, and not selected by primarily focusing on a single factor (like in case of Factor*

Ex: a collection of companies ranking high on both quality and growth factors

Model

Asset Allocation

An "Asset Allocation" smallcase is a collection of stocks/ETFs/MFs in which instruments are selected and periodically rebalanced based on a specific allocation criteria across different asset classes (e.g., equities, bonds, commodities).

Ex: a 60-40 portfolio of Equity and debt ETFs (equity ETFs representing 60% of the total weight and debt ETFs representing 40% of the total weight)

Asset Allocation



*Factor: In case type selected is Factor, then the specific factor can also be added in the smallcase name



STEP 2: Add the custom part of the name

Once a smallcase type is selected, the suffix will automatically populate. The custom part can now be added from “Your smallcase name”.



STEP 3: Verify the name

Once both the smallcase type and name is selected, click on “Verify name”. If the name gets verified, a green tick will appear on the smallcase name. In case of any issue in the name, the relevant error message will show up and can be rectified.



ℹ️ NOTE:

The existing name of the smallcase will continue to be reflected to users until 13 February, even after changes have been made on Publisher platform. The new smallcase type and name will start reflecting to users post 13 February


 


Adding names for new smallcases

For new smallcases, the smallcase type and name can be added directly in STEP 1, after clicking on “Create smallcase”.


Here too, the name can be verified post which a green tick will appear. Verification of the name is now required in order to proceed forward.


Determination of “Asset Class”

Going forward, both factsheet and model portfolio report/portfolio report of every smallcase will specify an asset class of the smallcase. The definition and computation logic for the same is provided below:


The specific constituents of each portfolio are selected from a universe defined by the managers. This constituent universe is labelled as Asset Class. 


  • If the asset class is Equity Large Cap, then all underlying portfolio constituents are selected from the Large Cap segment representing top 100 companies by market capitalisation listed on the NSE (National Stock Exchange of India) 

  • If the asset class is Equity Mid Cap, then all underlying portfolio constituents are selected from the Mid Cap segment representing the companies ranked 101 to 250 by market capitalisation listed on the NSE (National Stock Exchange of India)

  • If the asset class is Equity Large & Mid Cap, then all underlying portfolio constituents are selected from the Large & Mid Cap segment representing the top 250 companies by market capitalisation listed on the NSE (National Stock Exchange of India)

  • If the asset class is Equity Small Cap, then all underlying portfolio constituents are selected from the Small Cap segment representing the companies ranked greater than 251 by market capitalisation listed on the NSE (National Stock Exchange of India)

  • If the asset class is Equity Mid & Small Cap, then all underlying portfolio constituents are selected from the Mid & Small Cap segment representing the companies ranked greater than 100 by market capitalisation listed on the NSE (National Stock Exchange of India)

  • If the asset class is Equity All Cap, then all the underlying portfolio constituents are selected from Multi Cap segment which may include companies from more than two of the Large Cap, Mid Cap, Small Cap categories as described above

  • If the asset class is Debt, then all the underlying portfolio constituents are Debt instruments

  • If the asset class is Commodity, then all the underlying portfolio constituents are Commodity instruments

  • If the asset class is Commodity & Debt, then all the underlying portfolio constituents are either Debt or Commodity instruments

If the asset class is Multi-Asset, then the underlying portfolio constituents comprise a mix of Equity, Gold, Silver, Commodity, Debt or REIT/INVIT constituents


Determination of “Comparable Index”

For each smallcase, currently a comparable index is determined on the basis of its holdings distribution. This remains unchanged and has no correlation with the new asset class metric being added. The logic for determining the same is provided below:


  • If the sum of weights of gold, silver, commodity, debt or REIT/INVIT constituents is greater than 50%, then comparable index is determined as Equity Multi-Cap

  • If the sum of weights of large cap constituents is greater than 50%, then comparable index is determined as Equity Large Cap

  • If the sum of weights of mid cap constituents is greater than 50%, then comparable index is determined as Equity Midcap

  • If the sum of weights of small cap constituents is greater than 50%, then comparable index is determined as Equity Smallcap

  • If the sum of weights of large cap constituents is greater than 30%, sum of weights of mid cap constituents are greater than 30%, and sum of weights of large cap and mid cap constituents are greater than 80%, then comparable index is determined as Equity Large & Midcap

  • If the sum of weights of small cap constituents is greater than 30%, sum of weights of mid cap constituents are greater than 30%, and sum of weights of small cap and mid cap constituents are greater than 80%, then comparable index is determined as Equity Mid and Smallcap

  • If none of the above conditions are met, then comparable index is determined as Equity Multi-cap


If weights are not prescribed for any smallcase, then equal weights are assumed for calculations.