Based on feedback received from both investors & managers, we are changing our implementation wrt the comparison index options available for smallcases. The new implementation aims to provide comprehensive comparison options to retail investors & brings uniformity in the implementation, which will help investors make better & informed investment decisions.

This article outlines the new implementation for Indian Stock & ETF & Indian mutual fund smallcases.

Indian Stock & ETF smallcases

In the performance component on smallcase profile,

1. By default, only smallcase performance will be shown

2. In the comparison options provided, the below options will be provided in the given order:

   1. Equity (Nifty 50)

   2. Equity Large Cap (Nifty 100)

   3. Equity Mid Cap (Nifty MidCap 150)

   4. Equity Small Cap (Nifty Small Cap 100)

   5. Equity Large & Mid Cap (Nifty Large & Mid Cap 250)

   6. Equity Mid & Small Cap (Nifty Mid & Small Cap 400)

   7. Equity Multi Cap (Nifty 500)

   8. Equity, FD & Inflation*

*This option will be provided only for smallcases that are live for >3 years.

Indian Mutual Fund smallcases

In the performance component on smallcase profile,

1. By default, only smallcase performance will be shown

2. The Comparison options will have the following implementation:

   1. A maximum of 6 options will be provided

   2. The first 4 slots are reserved for category average indices where sum of individual constituent weightages of that category is >=25%

      1. Thus, total category average index options provided can vary from 0-4

   3. The remaining slots will provide the following options in the given order, basis the number of remaining slots:

      1. Equity (Nifty 50)

      2. Equity Multi Cap (Nifty 500)

      3. Equity Large Cap (Nifty 100)

      4. Equity Mid Cap (Nifty MidCap 150)

      5. Equity Small Cap (Nifty Small Cap 100)

   4. Equity, FD & Inflation* will be provided as the 7th option only if the smallcase is live for >3 years

As an example, consider a smallcase which has the following constituents & weightages:

Thus, the category weightages of the above smallcase is:

• Equity - Large Cap: 30%

• Equity - Mid Cap: 20%

• Hybrid - Multi Asset Allocation Fund: 30%

• Debt - Liquid Fund: 20%

For such a smallcase, the comparison options provided will be (provided the smallcases has been live for <3 years):

• Default: smallcase performance only

• Option 1: Average of all Direct Growth Equity Large Cap mutual funds

• Option 2: Average of all Direct Growth Hybrid Multi Asset Allocation mutual funds

• Option 3: Equity (Nifty50)

• Option 4: Equity Multi Cap (Nifty 500)

• Option 5: Equity Large Cap (Nifty 100)

• Option 6: Equity Mid Cap (Nifty MidCap 150)