Canara Robeco Small Cap Fund Direct Growth

Canara Robeco Small Cap Fund Direct Growth is a small-cap mutual fund. These funds invest at least 65% of their assets in small-cap stocks. The remaining is invested across equities of mid-cap and large-cap companies, debt and money market instruments.

The fund is managed by Pranav Gokhale and Shridatta Bhandwaldar, both of whom have deep knowledge in the equity research sector. The fund is benchmarked against the Nifty Smallcap 250 TRI index, which reflects its strategy and universe. The fund maintains a strong focus on sectors like Financials, Capital Goods and Healthcare.

Investment Strategy

Small-cap funds curated with quality businesses have the potential to generate alpha. To do this, Canara Robeco’s fund manager employs a business-first approach to find companies by looking for quality businesses at reasonable prices. A few other qualities that the fund focuses on are:

-Strong competitive advantage

-Stock trading below intrinsic value

-Resilience during market downturns

Who Should Invest In Canara Robeco Small Cap Fund?

Small-cap funds are businesses that have high-growth potential, but they also experience short-term market volatility. This fund is suitable for:

-Investors looking to invest in small but high-growth businesses

-Those with a long-term investment horizon 

-Comfortable with short-term market volatility

-Have a moderate to high risk appetite

Risks & Mitigation Strategy By Canara Robeco Mutual Fund

Small-cap stocks are extremely volatile, so the fund managers take key steps to manage risks effectively:

-Build a diversified portfolio across sectors and stocks to reduce overall market risk

-Select companies with reasonable trading volumes to avoid liquidity issues

-Evaluate business quality, including management, balance sheet, and business model, before investing to reduce business risk

Allocation & Historical Returns

Currently, the fund's portfolio comprises 67.3% small-cap stocks, 10.20% large-cap stocks, and 17.06% mid-cap stocks.

With an AUM of ₹11475.0 crores, Canara Robeco Small Cap Fund Direct Growth generated a return of 9.4% in 1 year, 20.4% in 3 years, 36.7% in 5 years. while its benchmark index (Nifty Smallcap 250) generated 5.1% in 1 year, 24.0% in 3 years, and 35.3% in 5 years.