Smallcase Rebalance

There has been a debate about todays smallcase rebalance. Please read this to get clarity.

The min amount of investment in a smallcase varies based on its constituents. If a constituent which is large in value ( say a stock of 4500 rs is at 10% allocation ) the min size will increase to 45000 and if a component of 1000 is at 1% allocation ( liquidbees in this case ) the min size of the portfolio will increase to 1 lac.

Overall, my recommendation has always been to maintain a portfolio size of 2-3 lacs as a min.

However even if you have not done so, you can customize your order and not buy liquid bees which will bring down your required portfolio size considerably

A good recent article by capital mind on how to customize and take only relevant rebalances can be read here

Rebalancing – Better Investing

Those who have executed the rebalance and had the funds, that is fine.
Those who have not yet done so can customize the order and leave out LIQUIDBEES.

Additionally, here on rebalances will specifically mention the ADDS and EXIT stocks

8 thoughts on “Smallcase Rebalance

  1. Hello Alok,

    After reading the above and the link that you referred, I have following additional queries.

    1. Changes for Mi_ST_ATH this week as per your update in blog – 2 BUY & 2 SELL
    2. Changes that I got from Smallcase this week – 5 BUY & 4 SELL

    Does this mean, I could/should have avoided this and should have customized the order to have only 2 BUY and 2 SELL as per your blog?

    Please clarify on this.



  2. Hi Alok,

    When you say 2 buy 2 sell, will you be sending name of stocks in email so that we can remove additional noise?



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