How Mid-Cap mutual funds beneficial to invest

By Rahul Pithadia – 

Among various category of equity Mutual fund, Mid-cap funds have their different charm of all. Mid-cap and Small-cap fund category is possibly the most exciting fund. These categories of funds have almost 60% of the asset in Mid-cap companies over the past 3years.

Mid-cap fund is able to deliver very high return when markets are doing well. The return can be above the average return. This drastic return is what makes investor to go for this fund. But on the other hand these funds have a huge volatility when market going from a bad phase. Sometimes the difference in the fall and rise price can be very high which makes investor fail to resist on switching. But as often said market is volatile it can be good or bad. So holding the fund for longer time will give you a best out of it.

So going for the Small-cap or Mid-cap can be rewarding for your portfolio considering the returns they deliver. However, during the tank period these are the most beaten once but during the rally they fetch maximum returns so the higher the risk the bigger the reward!

Canara Robeco Emerging Equities Fund: Daily Chart

Canara Robeco Emerging Equities Fund Elliott Wave Chart

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 of Canara Robeco Emerging Equities Fund

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. The break of 65 levels will provide excellent opportunities to investors to enter in staggered fashion and ride closer to their goals!

 

Invest NOW in Canara Robeco Emerging Equities Fund online – Click HERE

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