Companies

Canara Robeco eyes ₹500 cr from focused fund NFO

Our Bureau Mumbai | Updated on April 22, 2021

The open-ended equity scheme will invest in a maximum of 30 stocks

Canara Robeco Asset Management Company is aiming to raise ₹500 crore through its new fund offer (NFO) on Focused Equity Fund. The 15-day NFO period starts on Friday and closes on May 7. The fund will have the BSE-500 index as its benchmark.

The open-ended equity scheme will invest in a maximum of 30 stocks in large- mid- and small-cap companies across diversified sectors. It aims to provide a higher risk-adjusted return while staying diversified.

The fund manager adopting this approach, would identify businesses with sustainable and high growth opportunity, and quality, and scalable earnings potential, to be a part of the new scheme portfolio.

Also read: Why Canara Robeco Equity Tax Saver is a good buy

Mohit Bhatia, Head - Sales & Marketing said that although there are uncertainties over the second wave of Covid-19 in the market, the fund house is confident of collecting ₹500 crore from the NFO given the past digital experience.

The fund tends to benefit from active allocation to select best ideas with the aim to achieve optimal portfolio diversification across sectors to manage risk, he added. The product is well suited for investors looking for potential capital gains over medium to long term through investment in a market capitalisation-agnostic equity portfolio, comprising of well-researched and select high conviction businesses identified by the investment team, he said.

Shridatta Bhandwaldar, Head – Equities and Fund Manager of the scheme said the investment approach would be to identify leaders who have the highest market share and industry-leading return on equity (ROE/ROCE) profile, spot the challengers who have the possibility of superior earnings growth to challenge the leaders and identify new themes, stocks and sectors which are witnessing cyclical tailwinds.

Published on April 21, 2021

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