Value Research Rated 5 Star Small Cap Equity Fund Gave 19.58% Returns In 1 Year

The name of the fund is Canara Robeco Small Cap Fund. The fund outperformed peers throughout the favourable years of 2020 and 2021, and it has kept the downside to a minimum this year. While the fund has had a strong start, it will need to continue to perform for a few more years to be regarded as a good investment in its category. Let us know more about the fund.

Canara Robeco Small Cap Fund (Direct Plan-Growth)

This is a small-cap category mutual fund from the house of Canara Robeco Mutual Fund. It is a 3-year-old fund, launched on 15 February 2019. It is a medium-sized fund of its category with Asset Under Management (AUM) worth Rs 2,560 as on 31st March 2022. While the expense ratio is 0.40%, which is low compared to its category average of 0.76%. 

It is an open-ended and highly risky fund small-cap fund. The fund is rated 5-star by Value Research as well as the CRISIL. Its benchmark is NIFTY Smallcap 250 TRI. 

Investment Objective & Strategy

According to the Canara Robeco Mutual Fund, "The investment objective of the scheme is to generate capital appreciation by investing predominantly in Small Cap stocks. However, there can be no assurance that the investment objective of the scheme will be realized."

Canara Robeco Small Cap Fund invests mostly in Small-Cap equities in order to generate returns. The fund is good for Investors who are looking to invest money for at least 3-to 4 years and looking for very high returns. 

Minimum Investment & Exit Load

To start investment in this fund, the investor is required to invest a minimum Lump sum Investment of Rs 5,000 and multiples of 1.00 thereafter. And for additional investment. The minimum required amount is Rs 1000.00 and multiples of Rs.1 thereafter.

To start a Systematic Investment Plan (SIP) in this fund, the minimum instalment amount required is Rs 1,000 and Rs 2,000 and in multiples of Rs 1 thereafter.

The fund charges Nil if redeemed the invested amount after 1 year from the date of allotment. However, if units are redeemed within 1 year from the date of allotment, it will charge 1%. 

Returns

The fund has given better returns since its launch, both on SIP and Lump-sum investment. It has outperformed the NIFTY Smallcap 250 TRI benchmark in terms of returns. Since its launch 3 years, the fund has given 28.71% annual average returns. 

Annualised Lump-Sum Returns

1 Year	2 Year	3 Year
19.58	59.66%	31.69

Annualised SIP Returns

It has given negative returns on 1 year SIP.

1 Year	2 Year	3 Year
-0.03%	36.81%	40.57%

Portfolio

The fund invests 92.75% of its assets in equities (domestic), with 1.83% in large caps, 12.45% in mid-caps, and 59.51% in small caps. The financial, services, materials, capital goods, and construction sectors account for the majority of the fund's holdings. Schaeffler India Ltd., VRL Logistics Ltd., KPR Mills Ltd., City Union Bank Ltd., and Cera Sanitaryware Ltd. are the fund's top five holdings.

Disclaimer

Mutual Fund investments are subject to market risk. Read all terms and conditions carefully before investing. The above-mentioned information is purely informational and doesn't guarantee any return. The Greynium Information Technologies and the Author are not liable for any losses caused as a result of a decision based on the article.