Reasons to Invest in canara rebeco emerging equities fund

by DigitalBackLinker (DBL) Finance

Investment and saving go hand-in-hand and are crucial aspects of earning a decent return in the future. Most people opt for investment in mutual funds as it is safe and involves lower risk than other investment instruments. Different types of mutual funds offer different returns according to the investment amount, type of fund, risk involved, and time frame. The canara robeco emerging equities fund is a long-term potential fund with moderate risk but high future gains. It offers the stability of large caps and the growth potential of mid-caps in a single portfolio. It is one of the top performers among its category of mutual funds. SEBI approved the fund after the recategorization in 2018. It carefully targets large and mid-cap companies that have the potential to be leaders in their sector. Most of the funds are invested in crucial sectors of the economy, such as Financial, Automobile, Capital Goods, Services, and Healthcare.

The Canara Robeco Emerging Equities Fund was launched in 2005, and reports suggest that it has a successful track record of over seventeen years to its credit. It has even contained a better downside risk than the other counter benchmarks. Reports also represent that it performed well during the bull market phase by standing out with its superior performance over the complete market cycle. One can consider SIP to invest, which is convenient since it is expected to fall less than the market. canara robeco small cap fund direct growth is a growth-oriented fund targeting companies with high growth and the ability to generate capital prominently backed by good management.

There are several  reasons to invest in Canara Robeco Emerging Equities Fund, and a few of them are as follows:-

  • Suitable – this mutual fund is an outperformer and has delivered promising risk-adjusted returns for a prominent period of time. It manages downside risk better than the benchmark and performs well in the bull phase. It is suitable for every investor who wants to invest at least 5-7 years.
  • Diversified Portfolio – this fund has a well-diversified portfolio spread across sectors and balanced across large-cap and mid-cap segments. The mixed approach allows managers to move to favorable sectors while targeting quality high-growth stocks from the sector, providing investors with a higher alpha.
  • Emphasis on BMV – the fund targets Business, Management, and Valuation, which focuses explicitly on qualitative features, management, and governance. Other qualitative parameters are also taken into consideration, while the core focus is on the cash flow. 
  • Reasonable Volatility – is one of the primary features of this fund, wherein volatility is far lower than the benchmark and some of its prominent category peers. It can generate sound returns, the basic need for investors with superior risk-adjusted returns.

Thus, investing in this fund can be safe, and one can expect a decent return in a scheduled time frame. One can also visit the 5paisa website for the current status of the fund and other further details on investing procedure, the risk involved, etc., which will save time and make investment decisions easier.