Fund Review: Canara Robeco Emerging Equities Fund

Going by the mood in market, the advantage and importance of being long-term in one’s outlook about equities seems to be more relevant now than ever before. A key reason being there are certain short-term disruptions ranging from domestic politics to global markets which could play out against time-tested investment strategies. To thwart this, retail investors can opt for schemes which invest carefully with almost equal weightage to large- and mid-sized companies. Investing in such schemes with minimum of five years’ time-frame can stand in good stead for investors. And it has paid off for retail investors.

One such scheme is Canara Robeco Emerging Equities. The scheme is a good option especially for the long-term. The scheme’s hallmark, which invests equally in large and mid-sized companies, is its consistency in performance even in bear cycles of markets. In the past three-year and five-year periods, the scheme has given 13 per cent and 30 per cent returns while its benchmark index Nifty 200 TRI has given 10.2 per cent and 15.6 per cent returns in the same period.

Fund manager Miyush Gandhi took over the scheme in April this year. It is expected that he would continue to follow the scheme’s mandate of finding emerging ideas which would become dominant players in their respective sectors. This is reflected in the scheme’s portfolio. Gandhi has bought diversified stocks covering cyclicals, and industrials.


A few prominent companies in the scheme’s portfolio are Marico, Bajaj Finance and Larsen & Toubro.

Expert Take: Kaustubh Belapurkar, director, fund research, Morningstar India
The fund has maintained a healthy mix of mid- and large-sized growth stocks. In the past one year, the exposure to large-sized companies has been enhanced, which gives good stability to the scheme’s portfolio. Fund manger Miyush Gandhi has traditionally run a well-diversified portfolio of 60-65 stocks to contain risk. This has resulted in a consistent showing for the fund across market cycles.