NFO Alert: Canara Robeco Multicap Fund Opens for Investment. Is it a Good Choice?

Canara Robeco Multicap Fund NFO opens on 7th July 2023. The fund will invest at least 25% of the portfolio in each of the three market caps. Should you invest?

New Multicap Fund Launched Canara Bank
  • Canara Robeco Multicap Fund NFO opens on 7th July and closes on 21st July 2023
  • The fund would invest 25% each in large-cap, small-cap, and midcap stocks
  • The fund benchmark is the Nifty 500 Multicap 50:25:25 Index TRI
  • You can invest in the NFO if you are looking for a diversified equity fund for capital appreciation

One of the leading mutual fund houses, Canara Robeco, has launched a New Fund Offer (NFO) for a new mutual fund scheme called the Canara Robeco Multicap Fund. The NFO opens on 7th July 2023 and would close on 21st July 2023 after which the fund would be available for regular subscription. Here are all the details of the fund.

About Canara Robeco Multicap Fund

The Canara Robeco Multicap Fund is an open-ended equity mutual fund that invests across market capitalisations. The details of the NFO and the fund are as follows –

  • After the NFO closes, subscriptions and redemptions would be allowed within the next five business days from the allotment date. This date might be 4th August 2023 or before.
  • The fund will invest 25% of the portfolio each to small-cap, mid-cap, and large-cap stocks thereby offering diversification.
  • The benchmark of the fund is the Nifty 500 Multicap 50:25:25 Index TRI.
  • The fund managers are Vishal Mishra and Shridatta Bhandwaldar
  • The investment objective of the mutual fund scheme is long-term capital appreciation through diversification across market caps and sectors.
  • 75% to 100% of the portfolio would be allocated to equity and related instruments, 0% to 25% of the portfolio would be allocated to debt instruments including money-market instruments and 0% to 10% of the portfolio would be allocated to REITs (Real Estate Investment Trusts) and InvITs (Infrastructure Investment Trusts)
  • Both Regular and Direct Plan options would be allowed. Moreover, the Growth and IDCW options would also be offered.
  • The minimum investment amount is specified as ₹5000 while there’s no limit on the maximum investment.

Also Read – Do mutual fund NFOs make sense?

Should You Invest in the NFO?

If you are looking to invest in a diversified equity portfolio, the Canara Robeco Multicap Fund can be a viable option. When you subscribe during the NFO you can enjoy low NAVs and get a higher number of units.

Other benefits include –

  • Equity exposure can fetch attractive returns.
  • Diversification across market caps helps you get the benefit of multi-cap investment
  • If you choose the IDCW investment mode, you can enjoy regular dividend incomes
  • The scheme has no lock-in period. It is completely liquid and can be redeemed when needed
  • If you stay invested over the long-term period, you can grow your savings considerably

However, being an equity fund, there’s volatility risk in your investment.

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The bottom line

Understand the pros and cons of the scheme and assess the portfolio composition. If it aligns with your investment strategy and horizon, you can invest.

Also Read – Did you know flexi-cap funds and multi-cap funds were different?



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