Making the decision when choosing the best microfinance for your financial future can be difficult. After all, both the Axis Small Cap Fund Direct-Growth and the Canara Robeco Small Cap Fund are favorites among investors. However, choosing the right one depends on your financial goals, risk tolerance, and investment strategy. Through the following, you will understand the most critical aspects of the two banks to help you make an informed decision.

Key Facts Of Axis Small Cap Direct Growth

Axis Small Cap Fund Direct Growth has been considered the best performer in the small-cap segment. This mutual fund was started in November 2013 and operates mainly in the small-cap segment while focusing on growth. Year on year Axis Small Cap has had high returns on the portfolio with an intent to do more wealth creation in the long term.

A desire to follow good governance propelled this fund to implement a risk management strategy. First, the fund managers aim to identify organizations with good financial conditions and strategic positions. It also makes it less volatile, a significant issue often associated with small-cap funds, but it gets the stock growth that comes with the small-cap segment.

Overview Of The Canara Robeco Small Cap Fund

On the other hand, the Canara Robeco Small Cap Fund is relatively young, it was launched in the year 2019. Launched fairly recently as one of the small-cap funds, it has gained significant attention from investors seeking high returns in the small-cap segment. Like Axis Small Cap, Canara Robeco Small Cap also selects equities of small-cap firms that demonstrate high growth prospects.

One distinguishing feature of this fund is the high stock-picking risk that is associated with the fund. Canara Robeco Small Cap is a fund that tracks sectors and businesses that are new to the market and have unique strategies for their operations. It can improve performance in rising markets and expose the fund to more risks than Axis Small Cap.

Risk And Future Opportunity

Axis Small Cap and Canara Robeco Small Cap are designed for investors with a higher risk appetite, as small-cap funds tend to be more volatile than their large-cap counterparts. That being said, the potential for higher returns is also more significant. Axis Small Cap takes a slightly more conservative approach, making it suitable for investors who want exposure to small-cap stocks but with more controlled risk.

Which Fund Is Right For Future Security?

Regarding future financial security, your personal risk tolerance and investment horizon will determine which fund is better for you. Axis Small Cap Fund Direct-Growth may be the safer bet if you prefer stability. Its more balanced approach to stock selection and risk management makes it a good option for investors with a medium- to long-term horizon who want to grow their wealth without too much volatility.

Conclusion

Choosing between Axis Small Cap Fund Direct-Growth and Canara Robeco Small Cap Fund depends on what you’re looking for in your investment journey. Axis Small Cap offers a safer, more conservative approach with steady long-term gains, while Canara Robeco Small Cap presents an opportunity for higher returns through a more aggressive strategy.