Type of fund
This is an open ended debt scheme.
Investment objective
This fund asim to provide capital appreciation over the medium to short term by investing in debt and money market securities in addition to Gold ETFs. The fund aims to provides a combination of accrual and capital appreciation to its investors. Canara Robeco InDiGo Fund through its investment in the yellow metal aims to generate additional yield without taking more credit risk in terms of its fixed income portfolio.
Investment philosophy or strategy
Canara Robeco InDiGo is a hybrid fund. It consists of 65% to 90% investment in Indian debt and money market instruments and 10% to 35% in Gold ETFs. The fund aims to generate additional yield by making investments in Gold ETFs without taking credit risk on the fixed income portfolio. The combination of debt and Gold ensures that the seasonal patterns in both asset classes are captured effectively in addition to providing alpha to the portfolio - which acts as a portfolio diversifier. This fund, therefore, aims to provide regular flow of income through a quarterly dividend option for the benefit of investors.
Fund information
| IInception date | 09/07/2010 |
| CRISIL rank | N.A |
| Plans | Regular Direct |
| Options | Growth Dividend |
| Schemes |
Canara Robeco InDiGo Fund-Direct Growth Canara Robeco InDiGo Fund-Direct Quarterly Dividend Canara Robeco InDiGo Fund-Regular Canara Robeco InDiGo Fund-Regular Quarterly Dividend |
| Entry load | Nil |
| Exit load | 1% if redeemed in less than or equal to 1 year from the allotment date. Nil, if redeemed after 1 year from the allotment date. |
| Minimum investment | Rs.5,000.Additional Purchase:Rs.1,000 and in multiples of Re.1 thereafter. |
| SIP | Rs.1000. Quarterly frequency: Rs.2000 and in multiples of Re.1 thereafter |
| Product label | Moderately high. Investors looking to generate income from a portfolio comprising debt and money market securities besides Gold ETFs can opt for this fund |
| Benchmark | Canara Robeco Blended Gold Index. A composite index comprising Gold Index and CRISIL Short Term Bond Fund Index, which is computed by CRISIL for benchmarking the performance of this fund. |
| SWP | Available |
| STP | Available |
| Redemption | N.A |
| Taxation | Investors should consult their professional tax advisors for tax implications of this fund. |
Fund manager(s)
This fund is managed by Avnish Jain and Kiran Shetty. The fund managers are responsible for building a well-diversified portfolio by considering the asset allocation patterns and associated risks.The educational qualifications and details are listed in the table below:
| Name | Age | Qualifications | Experience |
| Avnish Jain | 44 | PGDM - IIM, Kolkatta; B.Tech (Hons) IIT Kharagpur | 19 years |
| Kiran Shetty | N.A | B.M.S - Mulund College of Commerce Mumbai. | N.A |
Portfolio – Top 10 holdings
| Name | Rating | Asset |
| Power Finance Corporation Ltd | AAA(CRISIL) | 15.15 |
| Rural Electrification Corporation Ltd | AAA(CRISIL) | 14.77 |
| Tata Global Beverages Ltd | AA+(ICRA) | 8.42 |
| 8.83% GOI 25-NOV-23 | Sovereign | 7.70 |
| Power Grid Corporation of India | AAA(CRISIL) | 7.59 |
| LIC Housing Finance Ltd | AAA(CRISIL) | 4.49 |
Risk measures
| Sharpe Ratio | -1.19 |
| Alpha | -4.06 |
| Beta | -0.04 |
| Standard deviation (%) | 3.63 |
Performance
| AUM | Rs.69.16 crores (August, 2015) |
| NAV |
13.70 (Growth) 10.61 (Dividend) |
| Expense ratio |
2.60% (August. 2015) Regular Plan2.45%- First 100 Crores of Net Assets 2.20%- Next 300 Crores of Net Assets 1.95%- Next 300 Crores of Net Assets Growth PlanLower expense ratio by 0.70% from August 2015 |
Returns and benchmark comparison (Compounded annualized returns)
| Scheme | Benchmark | |
| Inception Date - 9/7/10 | ||
| Last 1 year | 5.23% | 7.32% |
| Last 3 years | - | - |
| Last 5 years | - | - |
| Last 10 years | - | - |
| Since Inception | 2.91% | 4.35% |
Expert view of the fund and outlook
Gold does not suffer from credit risk. The fund manager aims to generate alpha by capturing the seasonal patterns in the yellow metal. The manager analyzes the seasonal patterns of gold and macroeconomic events such as government and central bank policy announcements to decide on the asset allocation between gold and fixed income. The fund manager, therefore, aims to create a portfolio of fixed income securities and Gold ETFs. Investors need to be aware that this fund carries moderately high risk since it contains a high level of liquidity due to focus on short to medium term securities. Given the allocation between fixed income and gold, this fund can capture the seasonal patterns in fixed income and the yellow metal.
How to apply
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. 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.
