Bhubaneswar: Canara Robeco Asset Management Company Limited today announced the launch of new fund offer (NFO) for Canara Robeco Small Cap Fund—an open-ended scheme.
This scheme aims to invest in stocks of small-cap companies that are likely to have the potential to generate higher returns than most other equity classes over a longer period of time. In equities, small-cap companies are potential mid/large caps of tomorrow. The minimum investment amount in the said scheme will be Rs 5,000 and multiples of Rs 1.00 thereafter.
The NFO opened on January 25 will close on February 8. The scheme proposes to invest at least 65%of the corpus in equity and equity-related instruments of small cap companies. Up to 35% of the portfolio will be allocated across Large, Mid and Small cap stocks for managing Beta of the portfolio.
Speaking on the NFO, Rajnish Narula, CEO, Canara Robeco Mutual Fund said, “Small-cap schemes as a category are gaining momentum as they have the potential to offer superior returns over a long term horizon. Considering the current market volatility, small caps should form a part of the investor’s asset allocation who have a high-risk appetite and are willing to take exposures in equities.”
“With our new small-cap fund we look to invest in companies with consistent earnings and reasonable valuations that could lead to alpha generation opportunity making small caps a viable investment prospect,” he further said.