Canara Robeco Emerging Equities Fund: Fund review

A scheme with a combination of large- and mid-sized companies could serve well in the current state of the markets as it will take into account the best stocks from these categories. Also with earnings growth transpiring in select sectors and small-cap companies yet to show any recovery it makes sense to be invested in large-sized and mid-sized companies. Among such schemes, Canara Robeco Emerging Equities is a consistent performer.

In the past three-year and five-year periods, the scheme has returned 12% and 27% returns while its benchmark index S&P BSE 200 TRI has given 11% and 13% returns in the same period. Investors must note that the scheme has been performing extremely well over long duration, which makes it an apt investment in current market conditions.

In the past six months, the scheme’s fund manager Miyush Gandhi has resorted to excessive churning and selected stocks which represent the theme of growth at reasonable price. The attempt here seems to create a portfolio of sound companies which are available after the recent massive fall of the broad market indices. Interestingly, these stocks are across sectors—right from banking to engineering. A few prominent companies which are part of the scheme’s portfolio are HDFC Bank, Divis Laboratories, and Balkrishna Industries.


Portfolio change (Past six months)

New entrants	Complete Exits	Increase in allocation
AIA Engineering	Force Motors	Axis Bank
Arvind	Hindustan Unilever	Tata Motors
Balkrishna Inds	KPIT Technologies	M&M Financial Services
Bata India	KPR Mill	Sriram Transport Finance

Returns (in %)

Period	CAGR Return	SIP CAGR return	Diversified Largecap-AVG CAGR
1 year	-7.53	-15.63	-6.74
3-year	12.12	8.96	10.14
5 year	27.70	16.77	16.97

Returns Peer Comparison (in %)

	1-year	3-year	5-year
DSP Equity Opportunities Fund	-8.76	11.44	16.37
Invesco India Growth Opportunities Fund	-0.13	11.55	16.33
Principal Emerging Bluechip Fund	-9.21	13.40	24.41

Expert Take
Suresh Sadagopan, Founder, Ladder7 Financial Advisories
This is a good large- and mid-cap focused scheme which invests across sectors. It maintains about equal weight in large and midcap stocks with growth bias. These stocks have the potential to be category leaders in the future. The fund has exhibited volatility during the down cycles of the market though. It has been able to offer consistent and credible performance over a longer tenure making it a good fund in one's portfolio.