Star of the Show – Canara Robeco Emerging Equities!

By Ashish Kyal – 

Small and Mid cap stocks are known as stellar performers when stock market recover from long lull. Nifty’s Mid cap bench mark index NIFTY MIDCAP 100 has given annualized returns of 23.6% over last 3 years vs NIFTY 50s 13.6% returns over the same period. Mutual funds based on Mid Cap stocks are no different. Canara Robeco Emerging Equities is the best amongst the small cap & mid cap category and it is ranked 2 by CRISIL in Small and Mid Cap category. Fund has given impressive annualized returns of 37.89% over last 3 years.

Canara Robeco Emerging Equities Fund: Daily Chart

Canara Robeco Emerging Equities Elliott Wave 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 15.81% to the entire portfolio followed by Banking and Finance 14.29%. Top Holdings and Sector Allocation for this fund are shown below.

SEctor Allocation of Canara Robecco Emerging Equities Fund

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

 

Equities are best options for valuable returns in a long run! To get more details, click HERE 

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