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Canara Robeco Emerging Equities

Type of fund

This is an open-ended small and mid cap diversified equity mutual fund. Mid and small cap companies are those which are ranked from 151 to 500 on the basis of market capitalisation (ranking is reviewed periodically).

Investment objective

This equity fund aims to offer capital appreciation in the long term by investing in diversified mid-cap stocks.

Investment philosophy or strategy

This fund scheme aims to identify future leaders courtesy bottom up stock picking in the mid-cap category. A combination of growth-oriented investing and value-added approach results in the formation of a well- diversified portfolio (employs the 'GARP' investing: strategy - growth at a reasonable price). Given that mid-cap companies are volatile, this fund minimises the volatility factor with diversification with a long term view. Also, this fund steers clear from chasing short-term profits which are more risky and may prove to be counter-productive in the long term. The emphasis will, therefore, be on companies with strong competitive position and quality management. This fund management will be based on an active investment style on the back of robust in-house research and focus on long-term driven values to achieve desired results.

Fund information

Inception date11/03/2005
CRISIL rank1
Plans

Regular

Direct

Options

Growth

Dividend

Schemes

Canara Robeco Emerging Equities-Auto Repurchase Growth

Canara Robeco Emerging Equities-Direct Dividend

Canara Robeco Emerging Equities-Direct Growth

Canara Robeco Emerging Equities-Regular Dividend

Canara Robeco Emerging Equities-Regular Growth

Entry loadNil. The upfront commission will be paid by the investors to their investment advisors or brokers.
Exit load1% if redeemed within one year from the date of allotment. Nil if redeemed after 1 year from the allotment date.
Minimum investmentRs.5,000 and multiples of Re.1. Subsequent purchases: Rs.1000 and multiples of Re.1.
SIPRs.1,000 and Rs.2,000 for monthly and quarterly frequency respectively and in multiples of Re.1. Minimum number of cheques is 6. Investors are given option to discontinue SIP by giving 15 days notice prior to the due date of the next instalment.
Product label – Risk and target investorsModerately high risk
Benchmark CNX Mid Cap. It is a medium capitalised segment of the stock market with high growth potential. The CNX Midcap Index is a benchmark of the midcap segment of the market.
SWPThe minimum installment amount is Rs.1,000 and Rs.2,000 for monthly and quarterly frequency respectively and in multiples of Re.1.
STPAvailable
Redemption Minimum Redemption: Rs. 5,000 and multiples of Re.1.

Additional Purchase: Rs. 1000 and multiples of Re.1 thereafter.

The redemption proceeds will be dispatched to the unit holders within 10 working days from the date of redemption or repurchase.

In case of any delay in the payment of redemption, the Asset Management Company will pay interest to the unit holders at a rate as specified by SEBI for the period of such delay. The current rate is 15% p. a.

Submission of forms for subscription and redemption during redemption can be done at the sales offices of the AMC or the official points of acceptance of the R & T Agent.

Units purchased cannot be redeemed until completion of a certain period of time from the date of allotment. The asset management company reserves the right to change the lock-in period to the extent permitted under the Equity Linked Savings Scheme, 1992.

Taxation This fund does not qualify for Section 80C ELSS benefits. Income received from units of a mutual fund registered with SEBI is tax exempt. Long-term capital gains on transfer of units is exempt from income tax, if the Securities Transaction Tax (STT) is paid. Short-term capital gains is taxable at 15%. If a transaction is not covered by STT, the long-term capital gain tax rate would be 10% without indexation or 20% with indexation.

Fund manager(s)

This fund is managed by Ravi Gopalakrishnan and Krishna Sanghavi. The fund managers are responsible for making buy / sell decisions and develop a well-diversified portfolio by considering the asset allocation patterns and associated risks. The investment decisions are made by analyzing the market conditions in addition to several regulatory aspects.

The educational qualifications and details are listed in the table below:

Name Age Qualifications Experience
Ravi Gopalakrishnan47MBA in finance and MS finance21 Years
Krishna Sanghavi40B. Com, I.C.W.A, M.M.S. (Finance)18 years

Portfolio – Top 10 holdings

Name Sector Value (Rs) Asset
IndusInd Bank Banking/Finance19.923.04
Britannia Food & Beverage18.532.83
Yes Bank Banking/Finance18.282.79
CCL products Food & Beverage14.252.17
Ricoh India Technology14.182.16
Solar India Chemicals14.142.16
Praj Industries Engineering13.892.12
Whirlpool Cons Durable13.672.09
Ashoka BuildconCement13.001.98
WABCO India Automotive12.681.93

Risk measures

Sharpe Ratio1.86
Alpha1.10
Beta17.97
Standard deviation (%) 22.03

Performance

AUM 473.77( average; April-June 2015)
NAV 58.97 ( as on 30/6/2015)
Expense ratio2.93

Returns and benchmark comparison

Scheme

Benchmark

Regular

Direct

Regular

Regular

Last 1 year

52.97%

54.19%

30.07%

30.07%

3 years

38.29%

24.14%

5 years

23.99%

11.20%

Since Inception

18.93%

37.63%

15.19%

19.25%

Canara Robeco Emerging Equities

Expert view of the fund and outlook

Canara Robeco Emerging Equities was a top performer and became a five-star fund in October last year. The fund offered 101% returns the last year (39% more than its benchmark index). This fund, therefore, holds promise to reward its investors with good returns. The total number of stocks in the fund portfolio has increased to 63. Canara Robeco Emerging Equities selects companies with low P/E Ratio (compared to industry P/E), consistent growth potential, increasing profit margin, research driven, manufacturing with scope for increasing PE to growth among others. The fund, in most cases, allocates 35.58% to small cap companies and around 56.04% to medium cap companies.

According to market observers, this fund is more suitable for investors looking to creating wealth and fulfil their lifestyle requirements and not those looking to fund their child’s education/wedding, retirement planning and any short-term needs. Equity markets, in general, have responded positively in FY15 due to measures taken by the government to revive the ailing economy. If the Indian economy in the near future grows at 9%, the companies will register profits, which will result in rising stock market prices. Since this fund invests in mid and small companies, you should earn higher returns than you would get on a diversified large cap fund. You should review the performance of this fund once a year.

How to apply

  • Online

    The official website of Canara Robeco Mutual Fund is the “official point of acceptance” for applications, subscriptions, switches and redemptions among other facilities. Transactions on the website will, however, be subject to investors’ eligibility in addition to terms and conditions of Canara Robeco Asset Management Company Limited (CRAMC). Investors can also avail of the facility of online transactions via the website of Karvy Computershare Private Limited. Karvy is the registrar and transfer agent for Canara Robeco Mutual Fund.

  • Offline

    Investors can also approach the MF branch or registered bank branch. Customers would have to submit the KYC (Know Your Customers) forms. Investors can then zero in on a fund/scheme/option and fill out the necessary forms and submit them to the relevant authority.

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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.

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