Canara Robeco launches ‘Canara Robeco Multi Cap Fund’ to unlock equity opportunities
· The Fund Manager investment strategy is aiming to combine portfolio stability along with Alpha generation
Mumbai, Canara Robeco Mutual Fund, India’s second oldest mutual fund today announced the launch of Canara Robeco Multi Cap Fund, a solution that allows investors to benefit from the power of the equity markets and aims to generate long term capital appreciation through diversified investments in large, mid and small cap stocks.
The new fund offer invests across companies of different market capitalisations. While active management of the portfolio may help to generate good performance, and diversification will help reduce the overall portfolio risk.
“Canara Robeco Multi Cap Fund can be one of the good opportunities to create long-term wealth through both lumpsum and SIP mode of investment. Mutual Fund investors who are looking for a good balance between risk and reward and are prepared to stay invested through various market cycles with a time horizon of 5 years or more may benefit from the India growth story with companies across market caps poised to take advantage of this unique opportunity ” said Mr. Rajnish Narula, CEO, Canara Robeco Mutual Fund.
The multi-cap fund would have an equity exposure limit of minimum 75% (25% each in large, mid and small cap stocks respectively) following a dynamic strategy with the flexibility to go overweight in any of these caps. The investment strategy of the fund manager is to combine portfolio stability along with alpha generation.
This fund allows investors to participate across a company’s life cycle and is thus an opportunity to create long-term wealth.
We believe that fund management is a healthy combination of risk management and alpha creation. Canara Robeco Multi Cap Fund will aspire to combine these two pillars through, (1) Portfolio Stability Part (risk containment through proven compounding businesses across large, mid and small cap) and (2) Alpha Generation Part
(alpha creation through cyclical turn arounds, reflection of OW/UW in sectors through market capitalisation rather than just absolute weights and lastly superior compounding stories). This product allows investors to selectively participate in broader market (mid/ small caps) and at the same time maintain resilience through large caps, creating opportunity for good risk adjusted returns through market cycles.” said Mr. Shridatta Bhandwaldar, Head Equities and Fund Manager.
The Nifty 500 Multicap 50:25:25 Index TRI is the first-tier benchmark of the Canara Robeco Multi Cap Fund. The large cap stocks in the fund would be among the first 100 companies, the mid cap stocks would be from 101st company right up to the 250th company and the small cap stocks in the fund would be 251st company onwards in terms of full market capitalization.
The large cap stocks would be those that have proved their mettle over decades. Companies with established business models, structural stories and runway for growth would be part of the mid-cap stocks and the small-cap stocks would be those that are leaders of tomorrow, that have great potential to see accelerated growth.
“If you take the last one-decade, various market capitalisation show differing returns and winners keep rotating. For the investor, it’s difficult to predict which market cap segment would do better. If someone has to participate in the wealth creation journey in India then investment opportunities are across Large Cap, Mid Cap & Small Cap and opportunities are not restricted to one market cap. Canara Robeco Multi Cap fund is a single key solution providing investors access to the power of all three worlds viz large cap , mid cap and small cap stocks said Mr. Gaurav Goyal, National Head – Sales and Marketing
Mr. Shridatta Bhandwaldar and Mr. Vishal Mishra are the fund managers for Canara Robeco Multi Cap Fund.
