Comments
Investors can buy units of Canara Robeco Equity Diversified fund from a long-term perspective. The fund, over the past one year, delivered returns in line with its benchmark - BSE 200, but has substantially outperformed over three- and five-year timeframes.
It has mostly been a top-quartile performer over the long-term.
The scheme invests with a large-cap bias, though mid-caps too carry significant weights in its portfolio. This blend allows it to participate in broader market rallies.
Given that the markets have been a bit choppy, despite touching new highs, investors may be better off taking the systematic investment plan (SIP) route to buying units of the fund. The scheme manages to contain downsides during volatile markets and ensures reasonable participation during rallies.
In a volatile year such as 2011, the fund’s NAV slid less than the BSE 200, while during the rallying markets of 2012 and 2013, it has exceeded the performance of its benchmark.
Performance and Strategy The Canara Robeco Equity Diversified fund remains mostly fully invested across market cycles. While it does take cash calls at times, it is restricted to less than 10 per cent.
The fund’s heavy holdings in consumer non-durables may have dragged its one year performance. In the last few months, the scheme has trimmed exposure to consumer stocks and increased focus in banking, petroleum products and automobile sectors. This helped the fund to somewhat participate in the market rally in some of the key holding stocks such as ITC, Bharti Airtel, Infosys and RIL.
On the other hand, it has increased its allocation in the banking and automobile sectors. ICICI Bank, HDFC Bank, SBI and Axis Bank are the key stocks that the scheme holds in the banking space.
In the last one year, Tata Motors and industrial major Bharat Forge were added to the portfolio.
Software is another defensive, the scheme had high exposure till a year ago, but has been trimmed in recent months. The Canara Robeco Equity Diversifed fund has managed to have a blend of momentum and defensive themes over the years.
The fund has invested in mid-cap stocks to the tune of over 25 per cent of its portfolio.
It increased exposure to mid and small-cap stocks such as VA Tech Wabag, Prestige Estate Projects and WABCO India, that have served it well.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.