Last updated on: February 15, 2025

Factsheet

Smart ETF Asset Allocation

20.97% 3Y CAGR Low Volatility Medium Term

Smart portfolio of multi-asset ETFs for earning market returns at low

volatility and cost.

smallcase Type Constituents Asset Class Launch Date

Asset-Allocation Stocks & ETFs Multi-Asset April 06, 2021

smallcase Rationale

Mutli Asset Smart ETF is a smart passive smallcase that will hold ETFs based on
multiple assets – Indian equities, global equities, gold, debt, liquid funds etc.

The smallcase will combine assets that have low or negative correlation with each
other so that portfolio volatility is reduced. For example, when equities fall, it is
seen that gold remains stable or rises.

Unlike a dumb passive strategy that buys all underlying assets irrespective of
valuations, this is a smart passive strategy. The mutual weights of various multi
asset ETFs will be dynamically balanced based on past returns, and future outlook
so that an investor doesnot own high proportion of overvalued asset classes at any
point in time.

This strategy when combined with the power of investing through a SIP route,
creates safety at two levels. One at the smallcase level, and second at investor
level through SIP.

The objective of the smallcase is to enable investors to earn, over 3-5 year period,
market returns at low cost and lower volatility than one asset class. Lower volatility
gives staying power. And time is the essence of compounding.

It is important to note, what this smallcase cannot deliver. Unlike our other
smallcase - Sustainable Compounders , this smallcase is not an alpha product. In
other words, it will not beat the underlying indices on which it is based. It is just a
better passive product than what you can get through a mutual fund.

**Book direct plan and get 20% cashback**

Rebalance Schedule

Rebalance Frequency Last Rebalance Date Next Rebalance Date

Need Basis January 17, 2024 To Be Decided

smallcase Managed By

COMPOUND EVERYDAY CAPITAL MANAGEMENT LLP

2nd Floor, Sakar Bhawan, 21/4 Ratlam Kothi Main Road, Above Federal Bank, Indore,
Madhya Pradesh, 452001

Contact Email SEBI Reg No BSE Reg No

7312510070 [email protected] INA000017198 —

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Pricing plans

Subscription Fee

3 months 6 months

₹900 ₹1,500

*Inclusive of all taxes applicable

Definitions and Disclosures

CAGR

CAGR (compounded annual growth rate) is a useful measure of growth or performance

of a portfolio. Every year returns generated by a portfolio are different. Let's say if a
portfolio is live for 3 years and returns generated by the portfolio are 5%, 15% & -7%,
respectively in the first, second and third year. Then we calculate CAGR as a return
number that would give the same terminal investment value at the end of three years, as
we get when the portfolio gains by 5% & 15% in the first two years and drops by 7% in the
third year. The CAGR in this case would be 3.94%. This means that you will always end up
with the same investment value at the end of the third year, if your portfolio gains by
3.94% every year or 5%, 15% and -7%, respectively in the first, second and third year.

In simple words, it indicates the annual return generated by the smallcase from the date
of launch. For smallcases live for less than 1 year, absolute returns in the applicable time
period are shown. Only live data is considered for all calculations. Returns and CAGR
numbers don't include backtested data.

P.S. - CAGR calculation methodology got updated from 25th Apr'22 on all smallcase
Platforms. Please read this post to understand the changes in detail.

Volatility Label

Changes in stock/ETF prices on a daily basis result in fluctuations to the investment

value of your portfolio. In order to help investors understand the extent of fluctuation
they might observe with their smallcase investment, every smallcase is categorized into
one of the three volatility buckets - High, Medium and Low Volatility. This is done by
comparing the smallcase's volatility against that of the Nifty 100 Index.

If the daily change in the investment value of a portfolio is too drastic, it means prices of
stocks/ETFs in the portfolio are changing very rapidly. Such portfolios have High
Volatility. Investing in High Volatility smallcases means that changes in your investment
values can be very sudden and drastic, whereas fluctuations in the investment value of
Low Volatility smallcases are expected to be lower in comparison.

For more information about how volatility is calculated, please check here.

Investment Horizon

For each portfolio, the manager provides a recommended investment time duration to
realise the best returns for the portfolio. Each portfolio has one of the following
recommended investment horizon:

Short Term: For portfolios with recommended investment duration of <1 year
Medium Term: For portfolios with recommended investment duration of 1-3 years
Long Term: For portfolios with recommended investment duration of >3 years

Asset Class

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 and 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

Rebalance

Rebalancing is the process of periodically reviewing and updating the constituents of a

smallcase. This is done to ensure that constituents in the smallcase continue to reflect
the underlying theme or strategy.

Categorisation of the smallcase constituents

All smallcase constituents fall in one of the below categories:

Large Cap
Mid Cap
Small Cap
Multicap ETFs
Debt
Gold
Silver
Commodity
REITs/InvITs

All the stocks listed on NSE(National Stock Exchange) are arranged in decreasing order
of Market Cap, so that the stock with the largest market cap gets 1st Rank. Stocks ranked
equal to or below 100 are categorized as Large Cap. Stocks ranked below or equal to
250, but ranked above 100 are categorized as Mid Cap stocks. Stocks ranked higher than
250 are categorized as smallcap.

Holdings Distribution

All constituents belonging to a smallcase are categorised under different segments.

Weightage of a segment is calculated as the sum of weights of all constituents
belonging to that segment. Suppose 4 constituents, with each having a weight of 10%,
belong to the Large Cap segment. Then the weight of the Large Cap segment in the
smallcase will be 40% (4*10).

If the manager has not prescribed any weights, equal weights are assumed for
calculations.

Determination of comparable index

For each portfolio, a comparable index is determined on the basis of the holdings
distribution of the portfolio.

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 the manager has not prescribed any weights, equal weights are assumed for
calculations.

Comparison of live performance

To help investors make informed decisions, smallcase platform provide many tools. One
of the tools provided on the platform is the comparison of the live performance of the
portfolio. This comparison is a tool to communicate factual & verifiable returns on behalf
of the smallcase creator. It should not be considered as an advertisement, promotion or
claim. The performance of the portfolio is not validated by a regulatorily-recognised
performance validation agency, since the framework is yet to be operationalized by the
authorities. The following methodology is used to provide users different options to
compare the performance of the smallcases:

All smallcases have an option to compare the live performance against returns
generated by Bank FDs, Inflation and Equity asset class
FE returns are calculated using the data available from RBI. The annual data for 1-3
years deposit rates is considered. This data is used to compute a daily index series,
where the annual returns of the series correspond to the annual deposit rates
provided by RBI. For instance, if the annual deposit rates for year 1 is 6% and year 2
is 7%, the total return of the series after 2 years is calculated as 1*(1+6%)*(1+7%) - 1
=13%. This series is also utilised to determine the CAGR between any 2 specified
dates
Inflation returns are calculated using the data available from IMF. The annual
percent change in average consumer prices is considered. This data is used to
compute a daily index series, where the annual returns of the series correspond to
the annual inflation rates provided by the IMF. For instance, if the annual inflation
rates for year 1 is 6% and year 2 is 7%, the total return of the series after 2 years is
calculated as 1*(1+6%)*(1+7%) - 1 = 13%. This series is also utilised to determine the
CAGR between any 2 specified date
All smallcases have an option to compare the live performance against returns
generated by Equity Largecap section of the market - represented by Nifty100 index
All smallcases also have an option to compare the live performance against the
comparable index, determined using the methodology provided above. Following
options are made available, as per the determined comparable index:

Market Cap Category Comparable Index

Largecap Nifty 100

Midcap Nifty Midcap 150

Smallcap Nifty Smallcap 100

Large & Midcap Nifty LargeMidcap 250

Mid & Smallcap Nifty MidSmallcap 400

Multicap Nifty 500

General Investment Disclosure

All the information (including charts, ratios and performance) are provided only for the
smallcase created by SEBI registered entities authorized to do so. The Company, on its
own, does not make any claim of performance/returns for such smallcases. The
company only provides tools to these SEBI registered entities for performance
calculation of their recommendations based on this Returns Calculation Methodology.
All services with respect to research and recommendations are provided by the
respective SEBI registered entities. Charts and performance numbers on the platform do
not include any backtested data.

Investment in securities market are subject to market risks. Read all the related
documents carefully before investing. Investors should consider consulting their
financial advisor while considering any investment decisions.

Risk Disclosure

Please note that investing in securities involves various types of risks that may impact
investments. Key risks that can affect all asset classes inter alia include changes in:
Market volatility
General market conditions
Trading volumes/liquidity and settlement periods
Interest rates
Rate of inflation
Domestic and/or global political, economic and financial developments
Policies and/or legal and regulatory frameworks by government and other appropriate
authorities

Asset class-specific risks inter alia include:

a. Risks related to Equity and Equity Linked Investments (ELIs) include:
Equity shares and equity related instruments are volatile and prone to price
fluctuations on a daily basis. The price of securities may be affected by factors,
such as price and trading volume volatility, currency exchange rates, company
specific news and rumours, etc. Midcap and smallcap stocks generally exhibit
higher volatility compared to largecap stocks.
b. Risk related to investment in Debts, Bonds and Money Market Instruments
Interest Rate Risk: Changes in interest rates may affect valuation of securities, as
the prices of securities generally increase as interest rates decline and generally
decrease as interest rates rise. Prices of long-term securities generally fluctuate
more in response to interest rate changes than prices of short-term securities.
Credit Risk: Credit risk refers to the risk that an issuer of a fixed income security
may default or be unable to make timely principal and interest payments on the
security. Normally, the value of a fixed income security will fluctuate depending
upon the changes in the perceived level of credit risk as well as any actual event of
default.
Liquidity Risk: The liquidity of a bond may change, depending on market
conditions leading to changes in the liquidity premium attached to the price of the
bond. At the time of selling the security, the security can become illiquid.
c. Risk related to exposure to Equities, Debt and Commodity through Exchange Traded
Funds (ETFs)
Sector/Index Risk: ETFs that track specific sectors or indices are exposed to
concentration risks. Adverse performance in those sectors or indexes can
significantly impact returns.
Tracking Errors: While ETFs aim to mirror their benchmark, they may not perfectly
track the concerned benchmark, leading to performance deviations due to factors
like expenses or liquidity constraints of the underlying constituents of the ETF.
Liquidity Risk: In volatile markets, liquidity for certain ETFs may be low, making it
harder to buy or sell units without affecting the price significantly.
d. Risk related to Commodity related Instruments
Risk related to commodity (including gold and silver) related instruments are
affected by several factors. The price of a commodity may be affected by factors
including its demand-supply dynamics in domestic and global markets, restrictions
on the movement/trade of the commodity in domestic and global markets, Indian
and foreign exchange rates, large scale transactions in the commodity by
governments, central banks and other major institutions, etc.
e. Risk related to investments in Real Estate Investment Trusts (REITs) and Infrastructure
Investment Trusts (InvITs)
Sector Risk: Changes in the real estate and infrastructure sector including changes
in applicable laws and regulations can affect the price and volatility of
securities/instruments of REITs and InvITs.
Interest Rate Risk: REITs/InvITs usually secure loans at the trust level and
subsequently distribute the amount among the underlying special purpose
vehicles (SPVs). In case of a rising interest rate environment, debt payment
increases for the trust and adversely impacts the cash flow for unitholders. This in-
turn reduces cash flow-based valuations of REITs/InvITs.
Credit Risk: Credit risk refers to the risk that an issuer of a REIT/InvIT
security/instrument may default on interest payment or even on paying back the
principal amount on maturity. Further, valuations may be affected by change in the
credit rating assigned to the REIT/InvIT and their SPVs by credit rating agencies.
Asset Transfer/Acquisition Risk: The valuation of REITs/InvITs heavily depend on the
underlying assets held by the trust. There is a risk that the transfer or acquisition of
these assets, which often relies on sponsors/management commitments, may not
materialise as planned. If the assets are not transferred or acquired, the valuation
of the trust and future cash flows may be significantly impacted.
Risk of lower than expected Distributions: The distribution by a REIT/InvIT will be
based on the net cash flows available for distribution. The amount of cash available
for distribution principally depends upon the amount of cash that the REIT/InvIT
receives as dividends or the interest and principal payments from portfolio assets.

In the light of the risks involved, you should transact in securities only after
understanding the associated risks. Please consider and assess all risk factors and your
risk tolerance before making investment decisions.

Manager Disclosure

COMPOUND EVERYDAY CAPITAL MANAGEMENT LLP is registered with SEBI with

INA000017198 as the SEBI registration number. The registered office address of
COMPOUND EVERYDAY CAPITAL MANAGEMENT LLP is 2nd Floor, Sakar Bhawan, 21/4
Ratlam Kothi Main Road, Above Federal Bank, Indore, Madhya Pradesh, 452001. The
manager is a member of BASL with Membership Number BASL1880.

The content and data available in the material prepared by the company and on the
website of the company, including but not limited to index value, return numbers and
rationale are for information and illustration purposes only. Charts and performance
numbers do not include the impact of transaction fee and other related costs. Past
performance does not guarantee future returns and performances of the portfolios are
subject to market risk. Data used for calculation of historical returns and other
information is provided by exchange approved third party vendors and has neither been
audited nor validated by the Company. Detailed return calculation methodology is
available here. Detailed volatility calculation methodology is available here.

Information present in the material prepared by the company and on the website of the
company shall not be considered as a recommendation or solicitation of an investment.
Investors are responsible for their investment decisions and are responsible to validate
all the information used to make the investment decision. Investor should understand
that his/her investment decision is based on personal investment needs and risk
tolerance, and information present in the material prepared by the company and on the
website of the company is one among many other things that should be considered
while making an investment decision.

COMPOUND EVERYDAY CAPITAL MANAGEMENT LLP has a contractual arrangement with

a vendor - Smallcase Technologies Private Limited (STPL); whereby STPL provides
technology solutions and related back-end infrastructure along with support for back-
office related operations & processes. STPL does not provide any investment advice or
recommendation nor does it make any claim of returns or performance with respect to
any advice or recommendation.

Investments in securities market are subject to market risks. Read all the related
documents carefully before investing.

Registration granted by SEBI, membership of BSE and certification from NISM in no way
guarantee performance of the intermediary or provide any assurance of returns to
investors.

Disclaimer: Registration granted by SEBI, membership of BASL and certification from

NISM in no way guarantee performance of the intermediary or provide any assurance of
returns to investors.

Disclosure: Compound Everyday Capital Management LLP, the manager of the

smallcases is also a SEBI registered Portfolio Manager. The Portfolio Manager and its
clients may own some or all of the stocks that form part of smallcases.

Contact Details:
Support Telephone: 7312510070
Support Email: [email protected]

Compliance Office Details:

Name: Sanjana Sukhtankar
Email: [email protected]
Contact: 7312510070

Grievance Office Details:

Name: Surbhi Sarda
Email: [email protected]
Contact: 7312510070