By Rahul Pithadia – Systematic Investment Plan is quite familiar with the crowd now but let me still feed the same once again. It allows the user to build his/her wealth through tiny investments on regular intervals. This helps the investor to avoid the risk of timing the investment and also reduces the burden of lump sum investments at one go.
Here the question might arise that why SIP? As there is a disciplined approach and instead of timing the market, it is advisable to give more time to the investments to produce healthy returns. It helps to harness the power of two quality strategies the power of compounding and cost averaging.
No one is late enough to start if the goals and the road map is quite clear. One of the best performing fund till date is mentioned below. Go through the risk reward ratio and dive in as per your convenience.
Canara Robeco Emerging Equities Fund: Daily Chart
Canara Robeco Emerging Equities is the best among the small cap & mid cap category and 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:
Sector Allocation:
Returns as on 9th February, 2016
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.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.
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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