Tracking MF: Canara Robeco Fund turns Rs 10,000 SIP to Rs 1.9 cr in 20 yrs

Canara Robeco Emerging Equities has generated Rs 328900 on an investment of Rs.10,000 since inception

Don't want to miss the best from Business Standard?

Canara Robeco Emerging Equities Fund, which is a large and mid-cap fund,  has turned a Rs 10,000 monthly SIP into Rs 1.90 crore over approximately 20 years. 

 

 Canara Robeco Emerging Equity Fund aims to generate capital appreciation by investing in a diversified portfolio of large and mid-cap stocks. Large cap companies are defined as ones which are ranked Top 100 with respect to their full market capitalisation & mid cap companies as the companies which fall in the range of 101 to 250 such companies. 

 

Large & mid cap companies –

Large Cap companies relatively tend to generate steady returns and Mid cap have immense growth potential as they are at an early stage in their life cycle and have more room for expansion.

 

The inception date of the fund is 11th March 2005. Since inception, an SIP of Rs 10,000 per month in the fund would have turned into Rs 1.90 crore (see table below), reflecting the fund’s long term wealth generation potential. 

 

The fund is ideal for investors who have an appetite for very high risk – return investments and an investment horizon of 3-5 years.

 

As of January 31, 2025, the Assets Under Management (AUM) of Canara Robeco Emerging Equity Fund was Rs 23,339 crore. The last 5-year, 10 years, and 20 years CAGR returns of regular plan growth option of the scheme is 19.05%, 16.47% and 18.01%, respectively, beating the benchmark. 

 

The fund is managed by  Shridatta Bhandwaldar, Head Equities and Mr. Amit Nadekar, Fund Manager.   

Investment Philosophy: GARP (Growth at a Reasonable Price)

 

Canara Robeco Emerging Equities Fund follows a "Growth at Reasonable Price" (GARP) investment style. This approach allows the fund to focus on companies that exhibit strong growth potential but are also trading at reasonable valuations. This blend of growth and value investing ensures that the fund can deliver capital appreciation over the long term while managing risk effectively.

 

For investors with a high-risk appetite and a long-term investment horizon of 3-5 years, this fund offers an attractive option. As India continues its growth trajectory, the potential for mid-cap companies to evolve into future market leaders is significant, making this fund ideal for those looking to capitalize on this dynamic market.

 

Fund Specifics and Portfolio Composition

 

The Canara Robeco Emerging Equities Fund was launched on March 11, 2005, and as of January 31, 2025, has an impressive AUM (Assets Under Management) of ₹23,338.91 crores. The fund maintains a diversified portfolio, investing in a mix of large and mid-cap companies from various sectors, including banking, automobiles, retail, and leisure services.

 

Some of the top holdings in the fund as of January 2025 include:

 

• ICICI Bank Ltd. (Banks) – 7.07% of net assets
• Indian Hotels Co. Ltd. (Leisure Services) – 5.13% of net assets
• Bharat Electronics Ltd. (Aerospace & Defense) – 4.04% of net assets
• Trent Ltd. (Retailing) – 4.00% of net assets
• Uno Minda Ltd. (Auto Components) – 3.90% of net assets

In total, the portfolio is spread across 98 stocks, with the top 10 stocks contributing nearly 40% of the fund’s net assets. This concentration on quality stocks allows the fund to maximize returns while ensuring adequate diversification.

 

Sector Allocation and Market Capitalization

 

As of January 31, 2025, the fund’s sector allocation was as follows:

 

• Banks – 12.42%
• Automobiles – 7.52%
• Retailing – 7.15%
• Leisure Services – 7.02%
• Auto Components – 6.99%
• Other Equity – 57.20%

The fund focuses heavily on large and mid-cap stocks, with 47% of the portfolio allocated to large-cap companies and 35% to mid-cap companies. This mix allows for a balanced approach, with large-cap companies providing stability and mid-cap companies offering significant growth potential.

 

Performance Overview: Consistent Growth Over the Years

 

The Canara Robeco Emerging Equities Fund has demonstrated robust performance since its inception. As of January 31, 2025, the fund has delivered the following returns:

 

• 1-Year Return: 17.79% (Regular Plan), 19.01% (Direct Plan)
• 3-Year Return: 13.54% (Regular Plan), 14.80% (Direct Plan)
• 5-Year Return: 18.62% (Regular Plan), 19.97% (Direct Plan)
• Since Inception Return: 17.25% (Regular Plan), 20.70% (Direct Plan)

The fund’s performance is benchmarked against the Nifty Large Midcap 250 TRI index, and it has consistently outperformed its benchmark in multiple time periods. The returns over the last 5 years have been particularly impressive, with the fund returning an annualized 19.97% in the Direct Plan, highlighting the effective strategy employed by the fund managers. 

Investment Accessibility and Minimum Investment

 

The Canara Robeco Emerging Equities Fund is an open-ended equity scheme that provides ample investment flexibility. The minimum investment amount is ₹5,000, with subsequent purchases starting at ₹1,000. The fund also offers systematic investment plans (SIPs) starting as low as ₹1,000 per month, allowing investors to start small and benefit from compounding over time.

 

For those who prefer a more systematic approach to investing, the fund also offers systematic transfer plans (STPs) and systematic withdrawal plans (SWPs), further enhancing flexibility for investors. These options make the fund an attractive choice for both new and seasoned investors. 

 

Past performance is not indicative of future results. The value of investments in mutual funds may fluctuate, and investors may not receive the amount originally invested. Investors should consult their financial advisors to assess suitability based on their individual risk profile and investment objectives. All investments in mutual funds are subject to market risks.