Top MFs: Canara Robeco Bluechip Equity Fund

Objective

Canara Robeco Bluechip Equity Fund Direct-Growth is a Large Cap mutual fund scheme from Canara Robeco Mutual Fund.

Fund Highlights

Canara Robeco Bluechip Equity Fund has Rs 5,691 Crores worth of assets under management (AUM) as on December 31, 2021 and is medium-sized fund of its category.

This fund has been in existence for 9 yrs, having been launched on January 2013.

The fund has an expense ratio of 0.38%, which is close to what most other Large Cap funds charge.

The expense ratio of the fund is 1.94% for Regular plan as on Sep 30, 2021.

The fund largely follows a Growth oriented style of investing and invests across market capitalisations - around 91.59% in giant & large cap companies, 8.41% in mid cap and 0.0% in small cap companies.

Canara Robeco Bluechip Equity Fund has an Exit load of 1% if redeemed within 1 year. Same for SIP.

6. Minimum investment required is Rs 5000 and minimum additional investment is Rs 1000. Minimum SIP investment is Rs 1000.

Returns

Canara Robeco Bluechip Equity Fund Direct-Growth returns of last 1-year are 22.90%. Since launch, it has delivered 15.98% average annual returns. The fund has doubled the money invested in it every 2 yrs.

Its trailing returns over different time periods are: 31.25% (1yr), 20.44% (3yr), 18.44% (5yr) and 13.26% (since launch). Whereas, Category returns for the same time duration are: 33.68% (1yr), 16.58% (3yr) and 16.06% (5yr).

Sector and Stock wise exposure

The fund has the majority of its money invested in Financial, Technology, Energy, Construction, Healthcare sectors. It has taken less exposure in Financial, Technology sectors compared to other funds in the category.

The fund's top 5 holdings are in Infosys Ltd., ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., Tata Consultancy Services Ltd..

While the top 10 equity holdings constitute around 51.61% of the assets, the top 3 sectors constitute around 57.38% of the assets.

Tax Implications

1. Gains are taxed at a rate of 15% (Short-term Capital Gain Tax - STCG) if units are redeemed within 1 year of investment.

2. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.

3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long-term Capital Gain Tax - LTCG).

4. For Dividend Distribution Tax, the dividend income from this fund will get added to the income of an investor and taxed according to his/her respective tax slabs.

5. Also, for dividend income in excess of Rs 5,000 in a financial year; the fund house shall deduct a TDS of 10% on such income.

Fund Manager

Shridatta Bhandwaldar is the fund manager of the scheme. Mr. Bhandwaldar is a BE (Mechanical) and MMS (Finance).

Experience: Prior to joining Canara Robeco Mutual Fund he was associated with SBI Pension Funds Pvt. Ltd. (Jul 2012-Jun 2016) as Head-Research, Heritage India Advisory Pvt. Ltd. (Oct 2009-Jun 2012) as Senior Equity Analyst, Motilal Oswal Securities (Jan 2008-Sep 2009) and MF Global Securities (Apr 2006-Dec 2008).

Expert comment

The scheme's ability to deliver returns consistently is higher than most funds of its category. Its ability to control losses in a falling market is high. It is mend for investors who are looking to invest money for at least 3-4 years and looking for high returns. At the same time, these investors should also be ready for possibility of moderate losses in their investments.