Investment Objective
Canara Robeco Small Cap Fund aims to generate capital appreciation by investing primarily in small cap stocks.
Investment Strategies
- Canara Robeco Small Cap Fund invests at least 65% in small cap stocks and the rest in the equities of companies other than small caps or debt & money market instruments for managing Beta of the portfolio.
- The portfolio aims to invest in small and emerging companies which are sustainable, having growth potential, undervalued and headroom for further growth.
- The fund prefers to invest in companies that deliver higher returns on capital for long term wealth creation for shareholders.
- It invests in companies that demonstrate competitiveness in their business through niche market positioning, strong brands or a dominant market share.
- Stock selection is made by the fund house’s in-house fundamental research.
- The fund prefers companies having strong business models, strong management and good governance.
- It focuses on businesses having growth potential, follows high standards of corporate governance and is available at reasonable valuations for creating alpha generation opportunities from small caps.
- It does not have any investment style bias for stock selection.
- The strategy involves macro research and intelligence, identifying key themes and monitoring business cycles.
- The fund may consider profit & loss risks of the companies during stock selection but strictly avoids the balance sheet risks of the companies.
- The fund seeks to invest in companies with consistent earnings and reasonable valuations, which can generate alpha for the fund.
Who Should Invest
- Investors having an investment horizon of at least 5 years and above and seeking to generate attractive returns through investment in small cap companies.
- Those seeking to invest in small caps as a part of their asset allocation strategy.
- Those having a high risk appetite and are willing to take exposure to small cap equities.
- Investors seek higher returns and having high risk appetite to tolerate high volatility in small cap companies.