The Emerging Equity Fund of Canara Robeco is one of the most popular funds in India that mainly focuses on mid-cap and small-cap stocks. Investing in Canara Robeco Mutual Fund can offer a wide variety of benefits to investors. In this post, we will explore the 8 key benefits of investing in The Emerging Equity Fund of Canara Robeco.
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Focus on mid-cap and small-cap stocks
Canara Robeco mutual fund highly focuses on investing in mid-cap and small-cap stocks. These are the companies with smaller market capitalization and may have greater growth potential than the larger companies.
Therefore, investing in these funds can provide exposure to segmented markets that may be overlooked by other funds.
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Diversification
Investing in The Emerging Equity Fund of Canara Robecos can offer diversification to your portfolio. Since the fund invests in a range of mid-cap and small-cap stocks, the investments are spread out across different sectors and companies.
This can help reduce the overall risk of your investment since if one company or sector performs poorly, the other investment can offset those losses.
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Potential for Higher Returns
Canara Robeco mutual fund has a track record of delivering strong returns over the long term. Since the fund invests in small-cap and mid-cap stocks, it has the potential to generate higher returns rather than other funds that highly focus on larger companies.
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Professional Management
Canara Robeco mutual fund is highly managed by a team of experienced fund managers who possess in-depth knowledge and understanding of the small-cap and mid-cap segments of the market.
They conduct rigorous analysis and research to identify companies with strong growth potential as well as managed the funds in a disciplined manner.
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Flexibility
Canara Robeco Emerging Equity Fund offers a wide range of options to investors that highly suit their investment goals and risk tolerance. The fund has both dividend and growth options that allow investors to choose the option that best aligns with their investment goals.
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Low Expenses Ratio
Canara Robeco mutual funds have a low expense ratio as compared to other funds in this category. This means that the fund charge lower expenses and fees that help to maximize the investor’s return over the long term.
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Tax Efficiency
Canara Robeco mutual funds are highly structured as a pass-through entity. This means that the fund doesn’t pay taxes on the profits it earns but rather passes those profits to its shareholders.
In addition, investors can even maximize their tax liabilities by taking advantage of tax-saving opportunities like investing in tax-free municipal bond funds.
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Consistent Performance
The Emerging Equity Fund of Canara Robeco has a proven track record of delivering consistent performance over a long period. The fund has even outperformed its benchmark index and peers over the last five years.
Conclusion
Investing in 5paisa Canara Robeco mutual funds can offer a wide variety of benefits to investors. They can easily gain exposure to small-cap and mid-cap stocks that can provide them with strong growth potential over the long term.