As you have decided to invest in Mutual
fund, the next most important step is to select a scheme that would help you to
meet your desired goal. Here are 3 most important things that should be
considered before investing in a particular scheme.
1)
Identify your goal: First and
for most one should identify their goals. You should read and research as much
as you can before investing. Fund performance do matters a lot but simply
looking at the past years return and investing in not advisable. Before
arriving to invest in any of the scheme one should consider key micro and macro
elements. It is advisable to stay for long term, if investing in Equity fund.
2)
Risk Reward ratio: one should
know there risk appetite before investing in any scheme. Whereas one should
invest as per there risk barring nature. If you are a risk taker investor so
you should, the scheme should provide better returns for long period of time.
As well as investor should note that all the schemes have their set of expense.
Based on this one should calculate their initial investment and returns.
3)
Fund manager’s capability and
investment process: The success and performance of fund depend upon the expertise
and experience of the fund manager and the process of managing funds. Before
giving your hard earned money to them one should learn the ability of fund
manger to achieve the scheme objective even in a challenging condition.
Canara
Robeco Emerging Equities Fund: Daily Chart
Canara Robeco
Emerging Equities is the best amongst the small cap & mid cap category and
it is ranked 1 by CRISIL. It aims to generate long term capital appreciation
through investing in diversifies mid-cap stocks which have higher probability
to turn into bigger corporate in the coming future.
Portfolio Analysis: As per the sectoral holdings Banking/Finance have been most favored sector for this fund as it
is contributing 15.77% to the entire portfolio followed by Engineering and
Chemicals Sector. Top Holdings and Sector Allocation for this fund are shown
below -
Top Holdings:
|
Company
|
PE
|
% Assets
|
|
Indusind
Bank
|
28.59
|
3.37
|
|
Indian Oil
Corp.
|
11.41
|
2.99
|
|
Yes Bank
|
20.95
|
2.46
|
|
Divis
Laboratories
|
29.85
|
2.18
|
|
The Ramco
Cements
|
22.12
|
2.13
|
Sector Allocation:
|
Sector
|
%
|
|
Banking/Finance
|
15.77
|
|
Engineering
|
14.92
|
|
Chemicals
|
10.50
|
|
Cement
|
10.38
|
|
Pharmaceuticals
|
6.41
|
Returns as on 29th August, 2016
|
Performance
|
Fund
|
|
1 Year
|
15.94
|
|
3 Year
|
46.95
|
|
5 Year
|
26.55
|
Risk Profile: The
risk associated with this fund is too high because the total investment is
focused on the stocks from small caps and midcaps sector. During the corrective
phase or bad times this scripts do not
have any lower limits to fall which can turn into capital loss. However
every coin has 2 sides as these small size companies have potential to turn
large which once happens can add bumper
returns to your corpus. It is suitable to investors having high risk
bearing ability within the age of 20-40 years.
Investment perspective: This fund has
maximum exposure to equity and as per our outlook on Indian Equity markets we
feel that the corrective action of past months is on the verge of completion
and post that the Bull Run should resume which will provide alpha returns.
Hence this is the correct time to park your money in this fund through the SIP
route.
In
a nutshell, this fund looks to be the best
amongst the midcap and small cap sectors. The break of 65 levels will provide
excellent opportunities to investors to enter in staggered fashion and ride
closer to their goals!
