Take a small exposure to Canara's new fund to gain from manufacturing push

Mumbai: Long-term equity investors eyeing a thematic allocation and believe India is well positioned to become the next manufacturing hub, can consider a small allocation to the new fund offer of the Canara Robeco Manufacturing Fund. Conservative equity mutual fund investors can use systematic investment plans (SIPs) to invest in diversified equity mutual fund schemes and skip this offer.

The NFO of Canara Robeco Manufacturing Fund is open and closes on March 1. Investors can start with ₹5,000 in this fund, and the scheme will be benchmarked to the S&P BSE India Manufacturing TRI Index. An exit load of 1% will be levied for redemptions before one year. The fund will be managed by Pranav Gokhale and Shridatta Bhandwaldar.

The scheme looks to capitalise on India's potential to become the next manufacturing hub. The fund manager will adopt a growth strategy aiming to capitalise on manufacturing trends and opportunities and invest across sectors, representing the manufacturing theme. The portfolio will have companies that invest across the manufacturing life cycle and includes segments like capital goods, industrials, logistics, construction, power, auto, defence, electronics, textiles, pharma and new sectors like renewables. The scheme will also look to benefit from reforms like Atmanirbhar Bharat, PLI Scheme, Single Window Clearance and import substitution.


"Investors with a five-year time frame, looking to take advantage of the growth in manufacturing can consider a small allocation of 5%, given the strong track record of the fund house," said Anup Bhaiya, CEO of Money Honey Financial Services.

"When markets are at lifetime highs, it's better for first-time or conservative investors to stick to diversified equity funds and avoid such themes," said S Shankar, founder of Credo Capital.