Canara Robeco Multi Cap fund, an open-ended equity scheme investing across large cap, mid cap, small cap stocks, has opened for subscription on Friday. The new fund offer (NFO) will be available till July 21. The scheme will reopen for subscriptions/redemptions, within five business days from the date of allotment, which is on or before August 4.

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The performance of the scheme is benchmarked against Nifty 500 Multicap 50:25:25 Index TRI. The scheme will be managed by Shridatta Bhandwaldar and Vishal Mishra.

Investment objective

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, Canara Robecco Mutual Fund said.

Plan/option

There are two options: regular plan and direct plan. While regular plan is for investors who wish to route their investment through any distributor, direct plan is for investors who wish to invest directly without routing the

investment through any distributor.

Regular and Direct Plans offer the following sub options:

(a) Growth

(b) Income Distribution cum Capital Withdrawal (IDCW) Option

- Reinvestment of Income Distribution cum Capital Withdrawal Option

- Payout of Income Distribution cum Capital Withdrawal Option

Both regular and direct plan shall have a common portfolio.

Default option

In case the investor fails to specify the preference, it would be construed that the investor has opted for growth option.

In case of valid applications received without indicating any choice of option under Income Distribution cum Capital Withdrawal Option, it will be considered as reinvestment of Income Distribution cum Capital Withdrawal Option and processed accordingly.

In case of valid applications received the default plan will be captured based on below table:

(Source: Canara Robecco Mutual Fund)

Approach

The fund will follow a bottom-up approach towards analysing and investing in individual companies and a top-down approach towards identifying and taking exposure across sectors. The investment emphasis of the scheme would be in identifying companies with strong competitive positions in good business and which have quality management.

The scheme will invest 75-100 percent in equity and equity-related instruments of large, mid and small cap companies, 0-25 percent in debt and money market instruments, 0-10 percent in units issued by REITs and InvITs, the fund house said.

Minimum application amount

The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

Auto switch facility

During the NFO period, the investors can avail the auto switch facility to switch units from the debt schemes of Canara Robeco Mutual Fund at the specified date in the scheme which will be processed on the last date of the NFO. The provisions of minimum investment amount, applicable NAV and cut-off timing shall also be applicable to the auto switch facility. However, CRAMC reserves the right to extend or limit the said facility on such terms and conditions as may be decided from time to time, Canara Robecco Mutual Fund said.

Liquidity

Being an open-ended scheme, units may be purchased or redeemed on every business day at NAV based prices, subject to provisions of entry/exit load, if any, as per the above clause related to load Structure. The AMC, however, reserves the right to reject further subscription/ application for units of the scheme on an on-going basis, depending on the prevailing market conditions and to protect the interest of the investors.

Units can be redeemed (i.e. sold back to the mutual fund) on or switched out (i.e. to another scheme of the mutual fund or option(s) offered within the scheme, if any) every business day, at the applicable NAV subject to applicable load, if any. The units of the scheme will not be listed on any exchange, for the present. The fund will, under normal circumstances dispatch redemption proceeds within 3 working days from the date of acceptance of the redemption request at any of the official point(s) of transaction(s), the fund house said.

Who should invest

This product is suitable for investors who are seeking long-term capital appreciation in investments.

According to Rajnish Narula, CEO at Canara Robecco Mutual Fund, those who are looking for a good balance between risk and reward and are prepared to stay through various market cycles with a time horizon of 5 years or more may benefit from the growth story with companies across market caps poised to take advantage of this opportunity,