The Canara Robeco Asset Management Company expects equity markets to deliver 13-15 per cent return despite market volatility and global economic uncertainty.

Shridatta Bhandwaldar, Head-Equities, Canara Robeco AMC, said investors should focus on asset allocation and stick to their investment in equities without bothering much on the noise around global developments and its impact on India.

“If you ask me whether markets will crash, yes it may fall 5-7 per cent but that should not disturb someone who is targeting to create wealth over the next 3-5 years. Most investors miss the bus in an attempt to time the market,” he said while launching the new fund offer on midcap on Friday.

Many opportunities

While the risk are high in the midcap space, the growth opportunities is much high and long term investors will get rewarded, he said.

The earnings growth in the midcap segment has has been phenomenal in the last few years with 75 per cent of these businesses depending on domestic factors. This offers better risk-adjusted returns from under-researched companies in the emerging themes, he added.

The portfolio of Canara Robeco Mid Cap Fund would consist of companies with high growth, compounding companies with high cash flow generation, low capital intensity and minimal financial leverage and cyclicals with increased return on capital.

The S&P BSE 150 Mid cap and Nifty 150 Mid cap TRI indices have rarely dipped into negative territory in three and five-year rolling CAGRs. This aspect stands in good stead for the companies in the mid cap segment, he said.

Canara Robeco Mid Cap Fund may invest up to 35 per cent in equity and equity-related instruments of companies other than midcap companies, debt and money market instruments and up to a maximum of 10 per cent in units issued by REITs and InvITs.

Related Topics
comment COMMENT NOW