What Are the Benefits of Investing in the Canara Robeco MidCap Fund?

January 24, 2024

One fund that many investors may want to consider is the canara robeco mid cap fund. This mid-cap-focused mutual fund provides exposure to the potential high growth of mid-sized Indian companies. Here is an overview of some of the key benefits of investing in the Canara Robeco Mid Cap Fund.

. Diversification

One of the main advantages of investing in the Canara Robeco Mid Cap Fund is instant diversification. The fund invests in a basket of mid-cap stocks across sectors. This provides wide exposure to the mid-cap segment rather than relying on just a few stocks. The fund typically holds around 50–60 stocks spread across sectors. So instead of picking individual mid-cap stocks, you can invest in the fund and get access to multiple mid-sized companies through a single investment.

. Growth Potential

Mid-cap companies are in the growth phase of their lifecycle. They tend to be more agile than large corporations when tapping into new opportunities. Several of today’s large caps were mid-caps a decade or two ago. So mid-caps have the potential to turn into large caps over the long run. Canara Robeco Mid Cap Fund aims to identify mid-caps with strong growth prospects. The fund managers apply thorough research and analysis to pick stocks that can deliver robust growth. This makes the fund suitable for investors seeking capital appreciation over the long term.

. Experienced fund management

Canara Robeco Mid Cap Fund is managed by an experienced fund management team. The fund managers have deep knowledge of the mid-cap space. They conduct rigorous research across sectors to identify quality mid-cap companies for investment. The fund managers have a proven track record of managing mid-cap funds over multiple market cycles. Their expertise helps the fund invest in fundamentally sound mid-cap players with competitive advantages and growth drivers. This enhances the probability of the fund generating good returns over time.

. Attractive Track Record

Over the years, Canara Robeco Mid Cap Fund or canara robeco small cap fund has made an impressive record. The fund has beaten its benchmark and category averages over the long term. For instance, the fund has produced annualized returns well above 20% over the last five years, as opposed to around 15 percent for its benchmark index. The fund has demonstrated the capacity to limit declines during market slumps and outperform in bull rallies. Its performance throughout market cycles is evidentiary of the skill of the fund management in dealing with various market conditions. 

Conclusion, the Canara Robeco Mid Cap Fund offers a productive means of investing in the high-growth potential of mid-capitalization stocks. It is an attractive investment option due to diversification, growth potential, experienced fund management, an impressive track record, and reasonable expenses. For investors seeking a good-quality mid-cap-focused mutual fund, the Canara Robeco Mid-Cap Fund would be worth considering in their portfolio as a way to gain exposure to mid-cap companies in India in a cost-effective manner through a proven fund. 5paisa suggests relying on technology platforms like their easy-to-use app for straightforward investing in funds like Canara Robeco.

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