Canara Robeco Emerging Equities-Direct Plan

Reason for recommendation 



This is an open-ended equity scheme, which seeks to invest in a diversified manner in the stocks of large-cap and mid-cap companies. The portfolio of the fund shows that the scheme invests equally in the large-cap and mid-cap space. Both of these categories carry around 45% weightage in the fund's portfolio. With equal investment in both large and mid-caps, the fund forms a great portfolio for moderate risk investors. The fund is well-exposed to sectors like finance, healthcare, and FMCG which are expected to outperform the market, going ahead.

 

The major holdings of the fund are in Bajaj Finserv, Reliance Industries, ITC and Britannia Industries. With the growing demand environment for financial products, the loan book and insurance business of Bajaj Finserv seems to be promising. At the same time in the recent AGM, Reliance Industries declared its foray into DTH and broadband services, which is a positive add-on to the growth story of the company. With the consumption story still going strong, ITC and Britannia Industries, two major blue-chip stocks representing the FMCG industry are both expected to do well. With the proper diversification of stocks, we see the fund as a potential buy for our valued investors.