Canara Robeco Infrastructure

Type or nature of fund

Canara Robeco is an open-ended equity scheme

Investment objective

This fund generates income by investing in equities and equity related instruments of various companies in the infrastructure sector.

Investment philosophy or strategy

Canara Robeco Infrastructure mutual fund is a thematic fund with focus on growth-oriented companies in the Infrastructure sector of the country. The fund has concentrated holdings with focus on large market capitalization stocks. The investments may be made in primary and secondary markets. Since Canara Robeco Infrastructure mutual fund is open ended, a certain portion of the portfolio may find its way into money market instruments to meet the repurchase requirements. Investment will also be made in securities which are reasonably liquid.

Fund information

Inception date	02/12/2005
CRISIL rank	1
Plans	Regular Direct
Options	Growth Dividend
Schemes	Canara Robeco Infrastructure-Direct Dividend Canara Robeco Infrastructure-Direct Growth Canara Robeco Infrastructure-Regular Dividend Canara Robeco Infrastructure-Regular Growth
Entry load	Nil
Exit load	1% if redeemed within one year from the date of allotment. Nil if redeemed after 1 year from the allotment date.
Minimum investment	Rs.5,000.Subsequent purchases: Minimum amount of Rs.1000 and multiples of Re.1 thereafter.
SIP	Minimum instalment amount: Rs.1,000 and Rs. 2,000 (monthly and quarterly frequency respectively) and in multiples of Re. 1.
Product label	High risk
Benchmark	S&P BSE 100
SWP	Minimum installment amount: Rs. 1,000 and Rs. 2,000 for monthly and quarterly frequency and i in multiples of Re 1.
STP	Available
Redemption	The redemption proceeds will be dispatched to the unit holders within 10 working days from the date of redemption or repurchase.
Taxation	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%.

 

Fund manager(s)

Yogesh Patil. With an MBA from Symbiosis institute of management, Pune, Patil has around 13 years of total experience including Sahara Mutual Fund, Religare, Man Financial and UTI securities With Canara Robeco since September 2009.

Portfolio – Top 10 holdings

Name	Industry	% to net assets
Ultratech Cement Ltd	Cement	9.01
Power Grid Corporation Of India	Power	8.10
Sadbhav Engineering Ltd	Construction Project	5.79
Container Corporation Of India Ltd	Transportation	5.44
Blue Dart Express Ltd	Transportation	5.13
HDFC Bank Ltd	Banks	4.96
Ashoka Buildcon Ltd	Construction Project	4.79
Texmaco Rail & Engineering Ltd	Industrial Capital Goods	4.35
Yes Bank Ltd	Banks	3.92
VA Tech Wabag Ltd	Engineering Services	3.88

 

Risk measures

Sharpe ratio	1.08
Alpha	15.53
Portfolio beta	1.07
Std deviation	21.38

 

Performance

AUM	Rs.116.23 Crores (April-June 2015)
NAV	35.58 (Regular); 23.56 (Growth)
Expense ratio	Regular Plan 2.70% - On First 100 Crores of Net Assets 2.45% - On Next 300 Crores of Net Assets 2.20% - On Next 300 Crores of Net Assets 1.95% - On Balance Net Assets Direct Plan Lower expense ratio by 0.56% with effect from 17th July, 2015

 

Returns

	Scheme	Benchmark
Inception Date	2.12.05	2.12.05
Last 1 year	31.70%	16.46%
Last 3 years	24.51%	20.09%
Last 5 years	11.96%	10.28%
Since inception	15.08%	12.69%

 

Expert view of the fund

One of the key factors which determine robust economic growth of the country is the infrastructure sector. Government is looking at increasing expenditure in the said sector, which would result in higher turnover, earnings for companies in addition to greater market capitalization. Investors with a high-risk appetite can buy this mutual fund which invests in shares of companies, which stand to benefit from infrastructure spending by the government. This fund, therefore, aims to capture the huge growth potential in the capital formation in the economy with a large-cap oriented portfolio.

How to apply

The official website of Canara Robeco Mutual Fund is the official point of acceptance for applications 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.