Canara Robeco Emerging Equities Fund

Canara Robeco (earlier known as Canbank Mutual Fund) is one of India’s oldest asset management companies. The company started operations in Indian in 1993. In the year 2007, Canara Bank formed an alliance with the Robeco group (that is now a part of the ORIX Corporation, Japan) and the mutual fund house was known as Canara Robeco Mutual Fund. This joint venture brings the extensive expertise of Canara Bank in the Indian domestic consumer market along with Robeco’s experience in asset management.

About Canara Bank: It is one of the oldest and largest banks in India and is a public sector bank. The bank has a nationwide presence with over 6100 branches and 81 million customers.

About Robeco: The Robeco group is one of the key global asset management companies. It was founded in Rotterdam in 1929 and currently is present in 16 countries and has over 1300 employees.

Canara Robeco is one of the most trusted mutual fund houses in India. The company offers a wide range of products like diversified equity schemes, theme-oriented equity schemes, debt funds, hybrid funds, monthly income generating funds and more to suit the investing needs of all types of customers.

Features of Canara Robeco Emerging Equities Fund

The Canara Robeco Emerging Equities Fund is an open-ended mutual fund growth scheme. The fund’s primary objective is capital appreciation for investors. It achieves this by investing in the equities of large and mid-cap stocks, thereby having a diversified portfolio. Since the fund invests in equities, it doesn’t offer any guarantee that the objectives will be met.

Who can invest in the Canara Robeco Emerging Equities Fund?

The following people are eligible to invest in this mutual fund scheme:

• Individual applicants
• Minors via their parent/guardian (minors cannot apply jointly with adults)
• Adults jointly with other adults (not exceeding a maximum of three applicants)
• HUF (Hindu Undivided Family)
• Companies registered under the Companies Act of 1956
• Partnership Firms
• PSUs (Public Sector Undertakings)
• Corporate bodies, cooperative societies
• Charities, trusts, societies
• Banks and other financial institutions
• FIIs registered with the SEBI
• Pension funds
• NRIs, PIOs, FPIs (Foreign Portfolio Investors)
• AMC (Asset Management Companies)
• And any other category of investors approved by the SEBI

The following lists of people are not eligible to invest in this fund:

• Overseas Corporate Bodies (OCBs)
• NRIs and foreign nationals residing in countries that are non-compliant as determined by the FATF (Financial Action Task Force)
• NRIs and PIOs who have obtained permanent residency status in the USA and Canada

Highlights of the Canara Robeco Emerging Equities Fund

This fund invests in the equities of both large and mid-cap funds, thereby providing investors with a diverse portfolio. Historically, mid-caps perform better than large-caps, when the economy is picking up. Thereby this fund has high potentials for generating huge returns to investors.

In the economy, every trough (fall) is followed by an expansion phase. Staying invested in midcaps, even when the market is down is highly advantageous. This helps investors reap the benefits of an economic boom.

Investors have to remember that though mid-caps and large-caps are risky and the associated risks are high; these funds have the potential to generate higher returns, thereby providing capital appreciation to unitholders in the long run.

Investment Philosophy of this Fund

It is companies and not shares (stocks) that generate wealth.

Investment Objective of this Fund

To invest in robust businesses that are growth-oriented with competent governance at reasonable valuations.

Investment Process

Here’s an outline of the investment process followed by the fund managers while choosing equities to invest in for this fund:

• Macro Research – This involves the identification of themes, tracking business cycles, and other research.
• The research phase is followed by in-house research, management meeting, and behavioural screeners.
• This is followed by an investment checklist to identify the right stocks to be included in the fund.
• The final portfolio is chosen after considering regulatory limits, internal risk management limits, investment mandates, and investment recording.

Salient Highlights of the Fund

• The fund follows Growth at Reasonable Price (GARP) style of investing
• It invests in large-cap and mid-cap stocks
• Large caps have the potential for steady returns
• Mid caps have the potential for immense growth

• The fund follows a bottom-up stock picking focussing on large and mid-cap companies. This helps the fund pick the best of the emerging companies.
• The fund identifies companies that have the potential to become leaders in their respective domains.
• It invests in companies with a long-term plan and avoids herd behaviour, short term profits, and market spurs.
• It is an ideal choice to be included as a part of the CORE portfolio of an investor.

Risk-o-meter

This indicates the risk level of the Canara Robeco Emerging Equities Fund. The risk level is

Moderately High

*If you are unsure if this fund is right for you, make sure to consult your financial advisor, before investing in it.

Who is this fund suitable for?

The Canara Robeco Emerging Equities Fund is ideal for investors who are:

• Looking for capital appreciation over the long term
• Looking to add equity and equity-related investments to their portfolio
• Looking to diversify their portfolio by investing in large and mid-caps

The Canara Robeco Emerging Equities Fund has the potential to offer maximized returns when an investor stays invested for three to five years or more.

Characteristics of the Fund Portfolio (updated on 28th June 2019)

The portfolio of the Canara Robeco Emerging Equities fund holds 61 stocks with the top ten equities contributing up to 38.31% of the net assets.

Top 10 Holdings of the Canara Robeco Emerging Equities Fund

Sector Wise Allocation of the Canara Robeco Emerging Equities Fund

Asset Allocation Pattern of the Aditya Birla Sun Life MNC Fund

If an investor had invested Rs. 10,000 at the time of inception of the fund, his investments would be currently valued at Rs. 94,560.

Returns in Percentage

Current Value of a Standard Investment of Rs. 10,000

SIP Returns (as on 28th June 2019)

(Assuming a SIP investment of Rs. 10,000 every month)

*Note that – Past performance is not indicative of future performance and may or may not be sustained in future.

1. Can NRIs invest in this fund?

Yes. NRIs are eligible to invest in mutual fund schemes in India, including this fund. However, there are certain restrictions. NRIs and PIOs residing in non-compliant territories as determined by the Financial Action Task Force and NRIs and PIOs who have obtained permanent residency status in the USA or Canada are not eligible to invest in this scheme and other mutual fund schemes in India.

2. Does the Canara Robeco Emerging Equities Fund offer dividends?

The scheme may distribute dividends if there is any surplus. Distribution of dividends is subject to the decision of the trustees. If there are no dividends to distribute or if the surplus is too small, then the dividend declaration may not happen. The Canara Robeco Emerging Equities Fund does not make any guarantee for dividends or bonuses.

3. What are the plan options?

The Canara Robeco Emerging Equities fund is available in the following plans/options:

• Regular Plan
• Growth Option
• Dividend Option (Reinvestment or payout)
• Direct Plan
• Growth Option
• Dividend Options (Reinvestment or payout)

4. What are the minimum investment options for the Canara Robeco Emerging Equities Fund?

Here are the minimum investment criteria for different schemes of the plan:

• Lump-sum investment – Rs. 5000 and thereafter in multiples of Rs. 1
• Subsequent purchases – Rs. 1000 and thereafter in multiples of Rs. 1
• SIP and SWP
• For monthly frequency – Rs. 1000 and thereafter in multiples of Rs. 1
• For quarterly frequency – Rs. 2000 and thereafter in multiples of Rs. 1

5. How to invest in the Canara Robeco Emerging Equities Fund?

You can get started with your mutual fund investments by using the online portal of Canara Robeco. Alternatively, you can approach your nearest Canara Bank branch or Canara Robeco office to fill up the application form in person, and get started with your investments.

*Disclaimer: Mutual fund investments are subject to market risks. Make sure to read the scheme document carefully and make the right investments. If you have any further doubts, get in touch with Canara Robeco by dialling the toll-free number 1800-209-2726.