Canara Robeco Emerging Equities: Hurry up Worry down!

By Rahul Pithadia - The small cap and the mid cap markets have a knack of stealing the show every time the equity market rebounds after a long lull. They turn out to be the most exciting of the lot and adds zing to the portfolio. When it comes to the rising markets then they are capable of fetching more than expected returns. So investors with high risk bearing ability should dive in this fund. One of the best pick in this category is mentioned below:

Canara Robeco Emerging Equities Fund: Daily Chart

Canara robeco emerging equities 20160321

Canara Robeco Emerging Equities is the best amongst the small cap & mid cap category and it is ranked 1 by CRISIL. It aims to generate long term capital appreciation through investing in diversifies mid-cap stocks which have higher probability to turn into bigger corporate in the coming future.

Portfolio Analysis: As per the sectoral holdings Engineering & Capital Goods have been most favored sector for this fund as it is contributing 17.84% to the entire portfolio followed by Banking and Chemicals Sector. Top Holdings and Sector Allocation for this fund are shown below.

Top Holdings:

Top hodings 20160321

Sector Allocation:

Sector Allocation 20160321

Returns as on 9th February, 2016 

Returns 20160321


Risk Profile: The risk associated with this fund is too high because the total investment is focused on the stocks from small caps and midcaps sector. During the corrective phase or bad times this scripts do not have any lower limits to fall which can turn into capital loss. However every coin has 2 sides as these small size companies have potential to turn large which once happens can add bumper returns to your corpus. It is suitable to investors having high risk bearing ability within the age of 20-40 years.

Investment perspective: This fund has maximum exposure to equity and as per our outlook on Indian Equity markets we feel that the corrective action of past months is on the verge of completion and post that the Bull Run should resume which will provide alpha returns. Hence this is the correct time to park your money in this fund through the SIP route.

In a nutshell, this fund looks to be the best amongst the midcap and small cap sectors as it has less exposure to Banking which can turn out to the laggard in the upcoming bull trend. The break of 65 levels will provide excellent opportunities to investors to enter in staggered fashion and ride closer to their goals!


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