Canara Robeco Mutual Fund launches Small Cap Fund

stock market news

Mumbai- Canara Robeco Asset Management Company Limited announced the launch of a new fund offer (NFO) called Canara Robeco Small Cap. This is an open-ended scheme. The goal of this scheme is to invest in smallcaps, which are likely to give higher returns than most other long-term equity categories in the long run. In equities, small-cap companies are the potential mid-large cap of the future.

This NFO is open on 25th January and closes on 8th February. In this scheme, at least 65 per cent of the amount is proposed to be invested in equity and equities linked instruments of small-cap companies. 35% of the portfolio will be allocated in large, mid and small-caps stocks till the portfolio of beta management. The goal of this fund is primarily to increase capital by investing in those great businesses which have the potential to grow in the long term and who have a sustainable business model.

Cane Robeco Mutual Fund CEO Rajneesh Narula said that as a category, small-cap schemes are picking up because there is a possibility of higher returns in long term. Given the current volatility of the market, small caps should be a part of the asset allocation of those investors who do not hesitate to take huge risks and are ready to try their hand in Equities. With our new small cap, we are keen to earn consistently and invest in companies that are reasonably priced, which can provide opportunities for alpha generation and can be a viable prospect of semal cap investment.

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