Canara Robeco Emerging Equities: Fund Review

Canara Robeco Emerging Equities is large and mid-cap fund. It invests in robust growth-oriented businesses with competent management at reasonable valuations. The fund gave 16.90% return since its launch in March 2005. The fund manager is Miyush Gandhi and he believes it is companies and not stocks that create wealth. Invest in this fund for an investment horizon of at least 5 years for the investments to give best results.

 

 

Performance

Canara Robeco Emerging Equities is ranked 2nd in its category by Upwardly. The fund has managed to beat its benchmark and category most of the times since its inception. The funds trailing returns both 1 and 3-year are higher than its benchmark.

Canara Robeco Emerging Equities has beaten its category average by 2-10 percentage points in the 2, 3 and 5-year returns. The fund’s returns are higher than most of its peers over the years.

Fund1 Year Return (%)3 Year Return (%)5 Year Return (%)
Canara Robeco Emerging Equities-5.53%19.23%25.89%
Mirae Asset Emerging Bluechip-0.05%21.02%25.44%
Sundaram large and Mid Cap Fund-0.88%15.73%17.38%
Principal Emerging Bluechip Fund-9.26%18.24%21.60%
Invesco India Growth Opportunities Fund0.15%16.86%16.25%

A SIP investment of Rs 5,000 a month in Canara Robeco Emerging Equities started 5 years ago is worth Rs 4.22 lakhs now. A profit of Rs 1.22 lakhs in just 5 years. Even if one chose to redeem their investment then they would be liable to pay tax only on the excess returns on Rs 1 Lakh, as gains up to Rs 1 lakh are exempt from taxes.

Fund Information

Canara Robeco Emerging Equities follows bottom-up approach to predominantly invest in large & mid-cap companies. Large-cap companies are defined as ones which are ranked Top 100 with respect to the market capitalization & mid-cap companies as the companies which fall in the range of 100 to 250 such companies. The fund seeks to identify those companies that have the potential to become leaders of tomorrow in their respective sectors within the large and midcap space. Large Cap companies tend to generate steady returns and Midcap have immense growth potential as they are at an early stage in their life cycle and have more room for expansion.

Fund has 97.12% investment in Indian stocks of which 52.55% is in large-cap stocks, 35.26% is in mid-cap stocks, 8.46% in small-cap stocks.

The fund has a well-diversified portfolio with 62 stocks in its portfolio. The top five holding sectors constitute 54.95% of the portfolio. These include Banks (28.58%), Software (10.51%), Consumer Non-Durables (5.69%), Pharma (5.16%), and Construction Project (5.01%).

Recommendation

Canara Robeco Emerging Equities invests with a long term view. The aim is to stay away from herd behaviour, chasing short term profits, running after certain market spurs. Such short term approach tends to be very risky and may not pay off in the long term. The fund accepts both lump sum and SIP investments. This fund has lower ups and downs (volatility) than other equity funds. Therefore, it is ideal for medium-term to long term goals. Invest in this fund to build wealth for the long term.

Fund NameCanara Robeco Emerging Equities Fund
Launch DateMarch 11, 2005
AUMRs 4,097 Cr
Return (Returns greater than 1 year are annualized)Since Launch: 16.90%
1 Year: -5.53%
3 Year: 19.23%
5 Year: 25.89%
Expense Ratio2.01%
Fund Category RiskHigh
Investment PlanGrowth
Minimum Investment Horizon5+ years
Minimum InvestmentRs 5,000
Minimum Additional InvestmentRs 1,000
Exit Load1% if withdrawn within 1 year
Fund ManagerMiyush Gandhi
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