Canara Robeco Mutual Fund announced the launch of the Canara Robeco Multi Cap Fund, an open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks.
The scheme opened for public subscription on July 07, 2023, and will close on July 21, 2023. The scheme re-opens for continuous sale and repurchase on or before August 04, 2023.
Q. What kind of mutual fund scheme is this?
This is an open-ended equity scheme investing across large-cap, mid-cap, and small-cap stocks.
Q. What is the main objective of investing in this fund?
The fund aims to generate long-term capital appreciation through diversified investments in equity and equity-related instruments across large-cap, mid-cap, and small-cap stocks. However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.
Q. How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Instruments | Indicative allocations (% of total assets) | Risk Profile | |
Minimum | Maximum | ||
Equity and Equity-related Instruments of Large, Mid, and, Small cap companies of which Large Cap Companies Mid Cap Companies Small Cap Companies | 75 25 25 25 | 100 50 50 50 | Very High |
Debt and Money Market Instruments | 0 | 25 | Low to Medium |
Units issued by REITs and InvITs | 0 | 10 | Very High |
Q. Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such multi-cap funds, thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. Some of these include:
Name of the fund | Five-year returns (in %) |
Nippon India Multicap Fund | 17.93 |
ICICI Prudential Multicap Fund | 14.98 |
Mahindra Manulife Multi Cap Fund | 19.39 |
Invesco India Multicap Fund | 14.06 |
Baroda BNP Paribas Multi Cap Fund | 15.97 |
Sundaram Multi Cap Fund | 14.50 |
| Source: MoneyControl | |
Q. How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked against the NIFTY 500 Multicap 50:25:25 Index TRI.
The Trustee/AMC reserves the right to change the benchmark in the future which is suitable to the investment objective of the scheme and as prescribed by AMFI from time to time.
Q. Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be charged as per the following:
- 1% - if redeemed/switched out within 365 days from the date of allotment
- Nil - if redeemed/switched out after 365 days from the date of allotment
Q. Who will manage this scheme?
Shridatta Bhandwaldar and Vishal Mishra are the fund managers for the scheme.
Q. Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
