Smallcap mutual funds frequently generate strong returns for long-term investors, demonstrating their value as a fantastic compliment to one's portfolio. Small-cap funds have a greater long-term yield than medium- and short-term plans, according to investment counsellors and industry experts.
This Small-cap mutual fund is rated 5-star by Value research under the Aggressive Growth Funds category.
Canara Robeco Small Cap Fund - Direct Plan
Canara Robeco Small Cap Fund is 3 years old equity small-cap fund, launched on 25th February 2019 by the Canara Robeco Mutual Fund. It is an open-ended medium-sized fund of its category. Mr Ajay Khandelwal and Mr Shridatta Bhandwaldar are the managers of the fund.
The size Asset Under Management (AUM) of the fund is Rs 2,560 Crore as of 31 March 2022. While expense ratio is 0.39% which is less compared to its category average expense ratio of 0.77%. The NAV or Net Asset Value declared on 23rd June 2022 is Rs 22.41. It is a highly risky rated fund for investment as it is an equity fund.
Investment starts in this fund with a minimum investment amount of Rs 5,000 for a lump-sum payment, and Rs 1,000 to start SIP. For additional investment in this fund, a minimum amount of Rs 1000 is required. There is no lock-in period applicable in this fund. However, it charges 1% for redemption within 365 days of investment. The benchmark of this fund is NIFTY Smallcap 250.
The fund has given negative annualised SIP returns of 7.64% in 1 year and 38.19% of positive returns in 3 years. However, lump-sum investment gave positive annualised returns of 16.66% in 1 year and 31.34% in 3-years, respectively.
Fund's Suitability & Objectives
This scheme seeks capital appreciation by investing in smallcap companies. According to the CRISIL, this fund is most suitable for investors who are looking to invest money for at least 3-4 years and also looking for very high returns. However, the scheme doesn't guarantee returns and holds the possibility of higher losses in investments.
According to the Canara Robeco Mutual Fund, "The investment objective of the scheme is to generate capital appreciation by investing predominantly in Small Cap stocks. However, there can be no assurance that the investment objective of the scheme will be realized."
The fund has 92.75% investment in domestic equities of which 1.83% is in Large Cap stocks, 12.45% is in Mid Cap stocks, and the majority 59.51% is in Small Cap stocks. The top 10 holdings of the fund are Schaeffler India Ltd, VRL Logistics Ltd, K.P.R. Mill Ltd, City Union Bank Ltd, Cera Sanitaryware Ltd, Creditaccess Grameen Ltd, and Can Fin Homes Ltd, Grindwell Norton Ltd, Persistent Systems Ltd, and EID Parry India Ltd.
Mutual funds investment are subject to market. Read all terms & conditions carefully with investment. Greynium Information Technologies, the Author, and the respective Brokerage House are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to check with certified experts before taking any investment decision.