Canara Robeco Bluechip Equity Fund

Fund In Brief

The Fund has 100% investment in Indian stocks, with 84.5% in large-cap and 11.01% in mid-cap stocks. The portfolio is diversified across sectors comprising financials, technology, energy, construction, and automobile. Some of the stocks in the portfolio include HDFC Bank, Infosys Technologies, ICICI Bank, Reliance Industries, and TCS.

The fund strategy is to generate alpha through judicious stock selection. The stocks selected are common with the benchmark - S&P BSE 100 TRI. However, the proportion of these stocks in the portfolio may vary.

Canara Robeco Bluechip Equity Fund is available in 4 categories:

• Direct – Growth
• Direct – IDCW As and When
• Regular – Growth
• Regular – IDCW As and When

IDCW is an abbreviation for Income Distribution cum Capital Withdrawal (Payout and Reinvestment Facility) Plan. The scheme offers only annual frequency payment with reinvestment and payout transfer facilities, as and when distributable surplus is available as per extant SEBI guidelines.

Direct Plan pertains to those investors who invest in mutual fund units directly from the Fund, whereas a Regular Plan is meant for investors who acquire mutual funds through the agent network. Both Direct Plan and Regular Plan would have a common portfolio.

Investment Facts

Investment Objective

Canara Robeco Bluechip Equity Fund aims to create long-term wealth. The fund endeavours to achieve capital appreciation by primarily investing in large market capitalization companies. The Fund is named to reflect the investment strategy, focusing on a concentrated portfolio by investing in any of the top 150 stocks ranked by market capitalization. 

Investors may note that there can be no assurance or guarantee on achieving the investment goals over long periods. The Fund operates under the aegis of Canara Robeco Asset Management Company, a Fund House which has continuously strived to generate long-term wealth for its investors by providing financial solutions to achieve financial goals.

Fund Summary

1. Canara Robeco Bluechip Equity Fund Direct Plan-Growth

   • Risk level-Very High
   • NAV-Rs.41.37 as of 21.06.2021
   • Expense Ratio-0.44%
   • Fund Started-02.01.2013

2. Canara Robeco Bluechip Equity Fund Direct Plan IDCW

   • Risk level-Very High
   • NAV-Rs.34.97 as of 21.06.2021
   • Expense Ratio-0.44%
   • Fund Started-02.01.2013

3. Canara Robeco Bluechip Equity Fund Regular Plan-Growth

   • Risk level-Very High
   • NAV-Rs.37.77 as of 21.06.2021
   • Expense Ratio-1.99% (As of 31-May-2021)
   • Fund Started-20.08.2010

4. Canara Robeco Bluechip Equity Fund Regular Plan IDCW

   • Risk level-Very High
   • NAV-Rs.21.36 as of 21.06.2021
   • Expense Ratio-1.99% (As of 31-May-2021)
   • Fund Started-20.08.2010

Fund Managers

• Mr Shridatta Bhandwaldar (since 05-Jul-2016)
• Mr Vishal Mishra (since 01-Jun-2021)

Fund Returns Summary

1. Canara Robeco Bluechip Equity Fund Direct Plan Growth-Returns Summary

   Period	Returns Per Year (Annualized)
   6 Months	19.64%
   1 year	53.94%
   2 years	24.07%
   3 years	19.32%
   5 years	18.40%
   Since Inception	15.61%

2. Canara Robeco Bluechip Equity Fund Direct Plan IDCW- Returns Summary 

   Period	Returns Per Year(Annualized)
   6 Months	19.55%
   1 year	53.83%
   2 years	23.16%
   3 years	18.14%
   5 years	17.61%
   Since Inception	15.08%

3. Canara Robeco Bluechip Equity Fund Regular Plan Growth-Returns Summary

   Period	Returns Per Year(Annualized)
   6 Months	18.70%
   1 year	51.58%
   2 years	22.27%
   3 years	17.71%
   5 years	16.93%
   10-years	14.14%
   Since Inception	13.04%

4. Canara Robeco Bluechip Equity Fund Regular Plan IDCW- Returns Summary

   Period	Returns Per Year(Annualized)
   6 Months	18.73%
   1 year	50.67%
   2 years	21.05%
   3 years	16.36%
   5 years	16.12%
   10-years	13.63%
   Since Inception	12.57%

Summative Pros and Cons

Benefits of Canara Robeco Bluechip Equity Fund

Investment in Canara Robeco Bluechip Equity Fund provides several benefits to the investor over the long term.

• Proven Track Record: The Fund House has a proven track record of almost three decades, with a history of successful investing in various business cycles. Mr Nimesh Chandan, the Head – Investment, Equities, and overlooks the Domestic and Offshore Equity funds strategy has close to two decades of experience in the Indian capital markets.
• Equity Asset Class Benefit: The asset class of equity has a time-tested track record of beating inflation and performs better than the traditional asset classes such as gold and debt in beating inflation. Canara Robeco Bluechip Equity Fund invests in stocks of large-cap companies, which are more stable in a volatile market than mid-cap and small-cap companies.
• Wealth Creation Tool: The Fund is a proven investment tool to fulfil long-term wealth creation goals. Being a large-cap equity fund, one should invest in this Fund for a period not less than five years.

Fund House Details

Canara Robeco Bluechip Equity Fund is housed under the Fund House, Canara Robeco Mutual Fund. Canara Robeco Mutual Fund was established in December 1987 as Canbank Mutual Fund. Later in 2007, Canara Bank partnered with Robeco and hence the name Canara Robeco Mutual Fund.

The joint venture has seen tremendous growth in the mutual funds' arena. This consistency is in terms of AUM. It offers various investment options in diversified equity schemes, monthly income and hybrid funds, and different treasury and debt products.

The promoter shareholders of the Fund House are:

1. Canara Bank 

   With over 113 years of banking experience, Canara Bank is one of the largest state-owned banks in India. The bank has over 89 million customers & over 10,850 branches.

2. Orix Corporation Europe NV

   Robeco Groep N.V. was founded in 1929 in Rotterdam. In 2013-2016, Orix Corporation - Japan acquired 100% shareholding of Robeco Groep N.V. Effective 1st January 2018, the group was renamed Orix Corporation Europe N. V. The group has an active investment style and is known as a global leader in sustainable investing.

   With over 9 decades of experience and a presence in 15 countries and over 873 employees, Robeco group has key investment centres in Rotterdam, Zurich, Boston, Chicago, Hong Kong, and Mumbai.

Who Should Invest in Canara Robeco Bluechip Equity Fund?

The objective of the Canara Robeco Bluechip Equity Fund is to provide a long-term capital appreciation for its investors. Therefore, the fund scheme is best suited for investors who seek:

• Long-term wealth creation:  The Fund is an equity fund formed to generate long-term capital growth by investing primarily in more prominent companies. With this objective, the Fund invests in a diversified portfolio comprising equity and equity-related instruments of companies classified as large-cap companies as per extant SEBI Regulations. Equity funds, in general, are meant for long-term wealth creation and hence need to be invested in for a period above five years.

• Aggressive Investment Strategy: The Fund falls in the high-risk category and would be prone to fluctuations in NAV movements in the short to medium term. Hence, it is suited for investors who prefer an Aggressive equity investment style.

In Conclusion

Being a large-cap fund, Canara Robeco Bluechip Equity Fund has the potential to create alpha for its investors. Since the Fund primarily invests in large-cap companies - benchmark Nifty 50 and Sensex - these stocks are known to be the most liquid stocks and would be less prone to volatility than small-cap and mid-cap stocks. Thus, the Fund is suited for an investor who wishes to invest in equity but prefers to play it safe and avoid risk.

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