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Canara Robeco Asset Management is launching a new equity scheme Canara Robeco Value Fund, that follows a value investment strategy.

The New Fund Offer (NFO) period for Canara Robeco Value Fund is from August 13th 2021, till August 27th 2021. The scheme re-opens for further subscriptions and redemptions from September 6th 2021.

Objective: The primary objective of the Canara Robeco Value Fund is to generate long term wealth by investing in a diversified portfolio of equity and equity-related instruments with a focus on value stocks. However, it doesn’t guarantee nor provides an assurance that the objective will be realized.

Canara Robeco Value Fund NFO Details

NOTE: 

  • All the investment and withdrawal/Redemption amount should be multiple of INR 1/-
  • Minimum SIP/SWP/STP for Quarterly frequency is INR 2,000/-
  • Exit Load – 1% if redeemed before 365 days and 0% if redeemed after.
Canara Robeco Value FundDetails
NFO Opening DateAugust 13th 2021
NFO Closing DateAugust 27th 2021
Re-open DateSeptember 6th 2021
Type of FundOpen-ended equity scheme
Fund ManagerMr Vishal Mishra
Minimum Lumpsum Investment AmountINR 5,000
Minimum SIP AmountINR 1,000
Minimum STP & SWPINR 1,000
RedemptionINR 1,000
Exit Load0 -1%
SuitabilityVery High Risk
BenchmarkS&P BSE 500 TRI
Plans and OptionsRegular Plan & Direct Plan

Who Should Invest in Canara Robeco Value Fund?

Canara Robeco Value Fund suits investors with a minimum investment horizon of 3 years. It best suits long term goals. Since the fund concentrates on value-based investing, investors who are focusing on stocks having a sufficient margin of safety can consider investing in this fund. The fund has the potential to deliver high risk-adjusted returns in the long term. However, it requires investors to be patient with their investments. Value investing focuses on finding stocks with strong fundamentals available at a discount to the fair value. Investors who are looking at investing in a diversified portfolio with a focus on strong fundamentals can consider investing in this fund.

Fund Manager

The fund manager for Canara Robeco Value Fund is Mr. Vishal Mishra. He has more than 17 years of industry experience with expertise in equity research and fund management. He is a firm believer in a strategy that is driven by fundamental research with a focus on risk-adjusted returns. In his past associations with Quantum Information Services, CRISIL Research & Information Services, IL&FS Investsmart, and Collins Stewart India, Mr Mishra has gained strong fundamental research experience. Mr Mishra is a Chartered Accountant and holds a Commerce Degree from Mumbai University. He is currently the Co-Fund manager for Canara Robeco Equity Tax Saver Fund, Canara Robeco Infrastructure and Canara Robeco Bluechip Equity Fund.

Asset allocation

The fund majorly invests in equity and equity-related instruments. Following is the indicative asset allocation of the fund.

Types of InstrumentsIndicative Allocation MinimumIndicative Allocation MaximumRisk Profile
Equity and Equity Related Instruments65%100%Medium to High
Debt and Money Market Instruments035%Low to Medium
Units issued by REITs and InvITs010%Medium to High
Units of MF schemes05%Medium to High
Equity ETFs010%Medium to High

The fund uses a unique strategy to pick stocks for the portfolio. It scans the entire universe of stocks using various financial parameters. Using the most suitable valuation technique, undervalued companies are identified. Then the companies are selected after generating bull case and bear case scenarios for the intrinsic value of the companies and high upside to downside ratio. Finally, the portfolio is constructed by allocating weights keeping in mind the size of the opportunity and risk.

Concluding Remarks

Canara Robeco Value Fund is an open-ended mutual fund that follows a value investment strategy. This strategy aims to identify stocks with strong fundamentals trading at a discount to their intrinsic value. By investing in undervalued stocks, the fund seeks to minimize the downside risk and provide a margin of safety. However, the companies take time to go back to their fair value. Hence the fund completely relies on the time lag strategy to make profits for its investors.

Investors who understand that long-term investing is the key to making returns from this can invest in this scheme. However, the fund doesn’t assure or guarantee any returns. Hence investors have to practice caution and continuously monitor their investments to see if the fund is assisting them in achieving their goals.

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