Ahh, I got the purpose of this thread now.
The constituents are already posted by many in telegram channels and what not. So if you wanted to do that you could. One of the challenges is to time those things exactly to get the price that the smallcase creator is getting. Besides, atleast for myself, I don't get free time to trade actively. If you have that much free time then it is definitely for you.
Yes, because by law, MF houses are not taxed on dividends(TCS) and also, they pay far lower fees like STT and all that due to their size. Economies of scale really kick in. They are also legally bound to hold things with a clearing corp, so no risk of a vijay mallya style thing happening. There are issues (front running etc) but they are better than smallcases imho.