Solid 48% Returns From SIP Investments In This Small Cap Fund

It has not been good going for SIP investments in the last 1-year. Several mutual fund schemes have given negative returns in that period, though, over a longer period of 3 to 5-years, mutual fund schemes have performed well.

Canara Robeco Small Cap Fund: Excellent returns in 3-years

If you had to invest a small sum of Rs 5000 each month for the last 3-years in the Canara Robeco Small Cap Fund, it would be worth Rs 2.68 lakhs today. This means the fund has given absolute returns of nearly 48%. In fact, your total investment would be Rs 1.8 lakhs and the value of your units in Canara Robeco Small Cap Fund would be worth Rs 2.68 lakhs. Having said that please note, we are just highlighting returns and other facts and this is not a recommendation to buy, hold or sell the units of Canara Robeco Small Cap Fund. The fund has holdings in Cera Sanitaryware, KEI Industries, Equitas Small Finance Bank, City Union Bank and Ultratech Cement.

Canara Robeco Small Cap Fund has assets under management to the tune of Rs 4831 crores, which is decent for a small cap fund. There's something that we should tell our readers and that returns from small cap funds tend to be very volatile, so make sure that you also diversify your portfolio.

Currently, Canara Robeco Small Cap Fund has invested about 94.7% in equities and the balance has been held in cash and cash equivalents. If investors are keen to go with the SIP route than the minimum amount that is required every month is Rs 1000. Some funds like Quant Small Cap Fund have performed even better than Canara Robeco Small Cap Fund over a period of 3-years. Having said that it is hard to find a fund that will remain a top performer throughout.

Disclaimer

Please note, this is not a recommendation to invest and is mere analysis. Mutual Fund investments is subject to market risk. Neither the author, nor Greynium Information Technologies should be held liable for any losses based on a decision after reading the article.