Small-cap stocks are known to offer higher returns over the long run compared to their larger peers. Canara robeco small cap fund is an open-ended equity scheme that focuses on investing in such high potential but volatile small companies. Let’s explore the top 5 benefits of investing in this direct growth mutual fund scheme.
Focuses on Unexplored Opportunities
While large and mid-sized companies dominate the attention of most investors, numerous small businesses operating in niche segments go undiscovered. The fund manager of Canara Robeco Small Cap Fund diligently scours various industries and sectors to identify such small-cap gems running in less competitive areas. He conducts on-ground research to find promising small companies having unique products or services catering to unmet needs. Such opportunities present high growth potential before they attract widespread notice. By investing at an early stage, before these small caps are explored by all, the fund aims to deliver superior returns for investors by benefiting from their exponential growth trajectories.
Skilled Fund Administration
Mr. Rajat Chandak, who has over 15 years of experience in evaluating the Indian stock market, is the manager of the Canara Robeco Small Cap Fund. He has experience using careful study to find undiscovered opportunities in the small cap world. Mr. Chandak assesses a wide range of financial metrics and management histories in conjunction with his group of committed fund analysts to find small companies with strong bases and room to grow. Because of their combined experience, each company’s operations, financial standing, and competitive advantages may be thoroughly examined in order to identify only the highest caliber businesses. Over time, this thorough approach has contributed to the generation of greater results.
A track record of success
Since its 2013 launch, the Canara Robeco Small Cap Fund has proven to be more successful at generating returns than both its benchmark and its peers. It is noteworthy that since inception, the fund has outperformed both the small-cap funds category average and the Nifty Small Cap 250 Index in the volatile small-cap area. The fund has shown to be a solid performer even during market downturns because to the experienced fund management team’s careful stock selection approach and judicious risk management. Their ability to spot small-cap businesses with potential for exponential growth—stocks that eventually turned into multi-baggers—is evidence of the effectiveness of their meticulous, research-based investing methodology.
Low-Cost Allocation
Canara Robeco Small Cap Fund is among the least expensive choices in the small-cap space, with an expense ratio of about 1.25%. Because of its low-cost structure, investors receive a larger portion of the returns.
Flexibility to Start Small
An investor can begin his small-cap mutual fund journey with Canara Robeco Small Cap Fund by investing a small amount of Rs. 500. The SIP option at Rs. 500/month also makes it suitable for first-time investors to create wealth over the long run.
Conclusion
Investors looking to boost long-term returns through a diverse portfolio of cheap but rapidly expanding small businesses are best served by the Canara robeco small cap fund direct growth. Its minimal expenses, flexibility, track record, and skilled management make it one of the best small-cap investments available.
