HOW MIDCAP MUTUAL FUNDS BENEFICIAL TO INVEST..!

Among various category of equity Mutual fund, Mid-cap funds have their different charm of all. Mid-cap and Small-cap fund category is possibly the most exciting fund. These categories of funds have almost 60% of the asset in Mid-cap companies over the past 3years. 

Mid-cap fund is able to deliver very high return when markets are doing well. The return can be above the average return. This drastic return is what makes investor to go for this fund. But on the other hand these funds have a huge volatility when market going from a bad phase. Sometimes the difference in the fall and rise price can be very high which makes investor fail to resist on switching. But as often said market is volatile it can be good or bad. So holding the fund for longer time will give you a best out of it.

So going for the Small-cap or Mid-cap can be rewarding for your portfolio considering the returns they deliver. However, during the tank period these are the most beaten once but during the rally they fetch maximum returns so the higher the risk the bigger the reward!

Canara Bank Rebeco Emerging Equities:

Canara Rebeco Emerging Equities is the best amongst the small cap & mid cap category and it is ranked 2^nd 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 sectorial holdings Banking & Finance have been most favored sector for this fund as it is contributing 12.44% to the entire portfolio followed by Automotive Sector. Top Holdings and Sector Allocation for this fund are shown below.

Top 5 Holdings:

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.

Technical Perspective: The Daily chart of Canara Rebeco Emerging Equities shows that wave 2 looks to be complete at the recent lows of 64 levels near the channel support and now wave 3 is in course. Also 50 days EMA is providing important support near 97 levels. one can use this level as support to capture the upmove.

Investment perspective: This fund has maximum exposure to equity and as per our outlook on Indian Equity markets medium term outlook is positive. Parking through SIP route is the best option as of now.

Invest NOW in Canara Rebeco emerging Equities Fund online – Click here

Mr Consistent in the Volatile Environment

Canara Robeco Emerging Equities is the best amongst the small cap & mid cap category and it is ranked 3^rd 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. 

 

NAV of this fund has moved from 45 levels to 80 levels within a time span of 3 years and has provided more than 36% returns. It outperformed despite of the volatility in the market and has performed better than its benchmark index. 

Canara Robeco Emerging Equities Fund: Daily Chart

Portfolio Analysis: As per the sectoral holdings Banking & Finance have been most favored sector for this fund as it is contributing 18.57% to the entire portfolio followed by Chemical and Engineering Sector. Top Holdings and Sector Allocation for this fund are shown below.

Top Holdings:

Company	PE	% Assets
Minda Industries	24.94	3.11
Atul	25.74	3.07
CARE	30.56	2.49
CCL Products	33.97	2.38
Engineers India	31.12	2.33

Sector Allocation:

Sector	%
Banking & Finance	18.57
Chemicals	14.96
Engineering	11.81
Automotive	8.87
Manufacturing	7.91

Returns as on 12^th April, 2017

Performance	Fund
1 Year	42.87
3 Year	36.69
5 Year	28.64

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 medium term outlook is positive. Parking through SIP route is the best option as of now.

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

Small-Mid Caps - The “sweet spot” for long term investors!

Lets discuss some Pros and Cons of Small and Mid Cap Funds – 

Pros:

1)  Happy medium: They are the biggest winning stocks of past decade and can balance the two extremes stability and growth potential.

2) Tomorrows Large-Cap:  One of the major reason to invest in small & mid cap companies is that they have potential to become a large cap companies. In 2005 Yes Bank was considered as a mid cap company but during a span of few years Yes Bank as turned out to become one of the biggest private sector bank in the world. 

Cons:

1)  High Volatility: The mid & small cap companies are highly volatile when compared to large cap stock. Due to its high volatile nature they can result into major fluctuations in shorter span which might be wounding.

2)  Uncertain Outcomes: The struggle associated with such firms is high because at initial stages maintaining stability is a task which not all can fulfill. However putting your money in them is like betting on a Dark Horse the more the risk the healthier the rewards. They are the best suitable to the risk seekers.

The best way to get rid of the risk associated with this fund is to generate a cushion for it by investing into the large caps or debt funds which will give balance to the fund and also diversify the investment.

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 2^nd 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 13.33% to the entire portfolio followed by Engineering & Capital Goods and Chemicals Sector. Top Holdings and Sector Allocation for this fund are shown below - 

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 more of corrective action is still left. Parking through sip route is the best option as of now.

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