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.
Frequently Asked Questions
What is the risk level of Canara Robeco Small Cap Fund?
As per the fund factsheet published by the fund house, Canara Robeco Small Cap Fund is considered to carry ‘Very High Risk’ for its investors.
Is there any lock-in period in Canara Robeco Small Cap Fund?
Canara Robeco Small Cap Fund has no lock-in period for its investors. The investors of this fund are free to make redemption requests on any date as per their requirements.
What type of mutual fund is the Canara Robeco Small Cap Fund?
The Canara Robeco Small Cap Fund is an open-ended equity mutual fund scheme belonging to the small cap fund category.
Is Canara Robeco Small Cap Fund an open-ended or close-ended fund?
The Canara Robeco Small Cap Fund is an open-ended equity mutual fund scheme.
What is the benchmark index for Canara Robeco Small Cap Fund?
Nifty Smallcap 250 Index TRI is the benchmark index of Canara Robeco Small Cap Fund. The fund has BSE SENSEX TRI as its additional benchmark index.