Canara Robeco Emerging Equities Fund: Fund review

Inflows into mid-cap focused mutual funds are likely to revive in the coming months after the formation of a stable government at the centre, leaving a key uncertainty behind for the markets.

While cashing in on the mid-cap rally, investors should pay attention to the stability of the portfolio. This can be achieved by looking at schemes that offer a combination of large-sized and mid-sized companies. Presence of large-sized companies will add stability to the portfolio and mid-sized companies would provide alpha and add incremental returns.

Among such schemes, Canara Robeco Emerging Equities fits the bill. The scheme has a long performance record of close to 15 years. In almost all cycles, it has beaten its peers and the benchmark index by a reasonably good margin.


The scheme’s fund managers Krishna Sanghvi and Miyush Gandhi have constructed quite a diversified portfolio across large-and-mid-sized companies, which helps contain risk and generate returns across market cycles. In the past three-year, five-year and 10-year periods, the scheme has given returns of 16%, 20% and 21% returns, respectively, while its peers have given average returns of 12%, 13.8% and 13.5%, respectively, over the same periods. Investors can consider the scheme with an investment horizon of at least five years.

Portfolio Change (Past 6 months)

New Entrants	Complete Exists	Increase in Allocation
Aditya Birla Fashion & Retail	LIC Housing Finance	TCS
Bharti Airtel	Vedanta	Larsen & Toubro
City Union Bank	Bajaj Finance	Jubilant Life Sciences

Returns (in %)

Period	CAGR Return	SIP CAGR Return	Market Cap Fund Average CAGR Return (%)
1 Year	2.32	11.41	2.53
3 Year	16.78	10.71	12.69
5 Year	19.99	14.52	13.74

Returns Peer Comparison (in %)

Scheme name	1-Year	3-Year	5-Year
Invesco India Growth Opportunities	4.26	14.32	14.63
Kotak Equity Opportunities Fund	8.06	14.45	14.96
Principal Emerging Bluechip Fund	-3.07	14.95	17.92

Source: Accord Fintech, Complied by ETIG Database

Expert Take
Kaustubh Belapurkar, Director (fund research), Morningstar India
Over the last couple of years the mandate of the fund has changed to healthy mix of mid-sized and large-sized growth stocks from small- and mid-cap stocks. The fund has a well-diversified portfolio of 60-65 stocks to contain risk, which has played an important role in the scheme’s consistent performance across market cycles.