Indian market rallied over 8 percent in the last month of 2020 with Sensex making its way towards 50,000. It finally hit the crucial psychological level earlier in the month of January.
Diving deeper into the mid-way of December, the markets seemed only to soar higher supported by strong global cues as well as support from foreign institutional investors.
The Nifty50 soared which had already rallied by about 8 percent in December to inch closer towards 14,000.
Strong price action on D-Street suggested a strong recovery for the markets and witnessed the dawn of the end of the Covid-19 pandemic with the beginning of vaccinations outside of human trials.
Tracking stellar run on D-Street there are many smallcase that outperformed the index in the same period.
smallcases are model portfolios of stocks/ETFs based on a theme, idea or strategy. It is a modern investment instrument for investors to build long-term diversified portfolios. smallcases are created by SEBI registered professionals.
smallcases have brought a lot of flavor to investing as they are created across various strategies, market segments, sectors, and risk profiles.
Here is a list of 10 best performing smallcases in December 2020, what category they belong to, what strategy they follow, and who they are managed by. These smallcases have rallied more than 12 percent each compared to Nifty’s 7.8 percent return in December 2020:
Realty Tracker: Return 18.09%| Minimum Investment 7,278
This smallcase comprises real estate companies to allow investors to efficiently track and invest in the realty sector. It is a high-risk Midcap strategy managed by Windmill Capital.
This smallcase focuses on the theme of the Realty Sector as it is expected to contribute 13 percent to the country’s GDP by 2025 and is expected to reach US$ 1 trillion by 2030.
Metal Revival: Return 14.95%| Minimum Investment Rs 26,386
This smallcase comprises companies that have the potential to benefit from the resumption of infrastructure needs and the demands for metal that comes with it.
It is a high-risk Small-cap strategy that is managed by Ethical Advisers.
This smallcase uses technical and fundamental knowledge and studies to create the ideal portfolio. The metal sector globally is one of the worst-performing sectors, given the global lockdown scenario.
However, as nations plan resumption of infrastructure and economic activity, the metal sector has the potential to reward patient medium-term investors with a high-risk appetite.
Metal Revival smallcase by Ethical Advisers
Omni DX - Digital Transformation: Return 18.09%| Minimum Investment
This smallcase is themed on the fast-growing Multi-Trillion-Dollar theme providing Global diversification.
It is a moderate risk multi-cap strategy managed by Omniscience Capital.
A SuperNormal Portfolio of Indian Technology companies enabling global enterprises to accomplish their digital transformation (DX).
The strategy will provide global diversification to US and European economies and Dollar based revenue provide a hedge against Rupee depreciation.
Alpha Invesco - Deep Value + Growth: Return 14%| Minimum Investment Rs 27,408
This smallcase is a bouquet of domestic tech companies that provide products and services in the wake of evolving themselves with technological global domination.
It is a moderate risk multi-cap strategy managed by Alpha Invesco.
This smallcase is curated with high-quality stocks that have the potential to become multibaggers of the future as they can either become a Giant Killer themselves or can be very high-value takeover prospects for Global Giants.
Alpha Invesco - Deep Value + Growth smallcase by Alpha Invesco
Indian Healthcare Momentum: Return 13.94%| Minimum Investment: Rs 36581
A concentrated portfolio of top 10 stocks that score high on momentum factor based on the universe of Indian pharmaceutical, diagnostic, and hospital companies.
It is a moderate risk multi-cap strategy managed by Flameback Capita.
The strategy will benefit from tailwinds in the health sector post-pandemic sectors include Pharma, Banking, Insurance, Healthcare, and Diagnostic
India Healthcare Momentum smallcase by Flameback Capital
Listed Venture Capital: Return 13.28%| Minimum Investment Rs 37309
This smallcase comprises small listed companies with quality governance board & quality earnings poised to grow.
It is a high risk smallcap strategy that is managed by Lotusdew.
This smallcase uses a proprietary database that tracks board members of listed companies and in-house algorithms that track the background of these board compositions.
This smallcase operates on fundamental ideas like the variability of margins, earnings stability, one-off items in reported earnings as a few of the methods to further shortlist and curate an ideal portfolio.
Listed Venture Capital smallcase by Lotusdew Wealth
21G Trend Rider: Return 13.07%| Minimum Investment Rs 35000
This smallcase sets the benchmark to achieve substantial gain by following a careful stock selection strategy. The smallcase consists of 19 stocks having a blend of small-caps, midcaps & largecaps.
It is a high risk small & midcap strategy that is managed by 21G Investments.
Range bound breakouts are watched to enter the most suitable period in an equity life cycle. The market ecosystem is based on uptrends and downtrends, their significance and performance are carefully scrutinized.
With this small case, you will rest assured of investing in the best security.
21G Trend Rider smallcase by 21G Investments
Invest Plus- Metal Discovery Portfolio: Return 12.82%| Minimum Investment Rs 26,910
The Metal Discovery portfolio is geared towards aggressive investors who would like to play the revival of infrastructure and construction activities in the country.
It is a high-risk small-cap strategy that is managed by KRchoksey.
This smallcase is designed to capture the opportunity from the metals and mining space. This smallcase’s expected return is 29.7% over a 12- 18 month time horizon.
Invest Plus- Metal Discovery Portfolio smallcase by KRChoksey
Omni Royals - SuperNormal LargeCap SIP: Return 12.76%| Minimum Investment Rs 14,500
This smallcase is a selective Large-Cap portfolio of industry leaders who are key contributors to India Transformed 2030.
It is a moderate risk largecap strategy managed by Omniscience Capital.
This smallcase executes a strategy that capitalizes on mispricing using a superior valuation toolkit and fundamental data.
Omni Royals - SuperNormal LargeCap SIP smallcase by Omniscience Capital
Emerging Dominators plus (ED+): Return 12.04%| Minimum Investment Rs 2,00,000
India has the youngest population in the world. With the current generation earning and spending more, there is an increase in per capita GDP.
It is a moderate risk small & midcap strategy managed by Piper Serica.
This objective of ED+ is to create a portfolio of multi-baggers from the small and mid-cap stocks and these 12 companies qualify to fit into our investment framework.
Stocks with competitive strength under the framework of Porter’s 5 Forces Model are chosen.