Smallcases make a big splash among young investors: Here's why

Experts flag inadequate regulatory oversight; concentrated and thematic nature of most portfolios makes them riskier bets

More than 3.5 million users. An estimated Rs 14,000 crore by way of investments. And a host of brokers and portfolio managers lining up to be part of the frenzy. For a product that has hardly been around for a few years, curated portfolios, or smallcases, as they are popularly called, are making quite a splash in the investment fraternity.

Introduced by Bengaluru-based start-up smallcase Technologies in 2016, such portfolios comprise stocks or exchange traded funds (ETFs) that reflect a theme or strategy, and are managed by professionals with a registered investment adviser, research analyst or PMS (portfolio management services)