Tuesday, August 30, 2016

3 things to witness before Investing

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!


Invest NOW in Canara Robeco Emerging Equities Fund online – Click here


        

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