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
- 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 Fund||Details|
|NFO Opening Date||August 13th 2021|
|NFO Closing Date||August 27th 2021|
|Re-open Date||September 6th 2021|
|Type of Fund||Open-ended equity scheme|
|Fund Manager||Mr Vishal Mishra|
|Minimum Lumpsum Investment Amount||INR 5,000|
|Minimum SIP Amount||INR 1,000|
|Minimum STP & SWP||INR 1,000|
|Exit Load||0 -1%|
|Suitability||Very High Risk|
|Benchmark||S&P BSE 500 TRI|
|Plans and Options||Regular 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.
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.
The fund majorly invests in equity and equity-related instruments. Following is the indicative asset allocation of the fund.
|Types of Instruments||Indicative Allocation Minimum||Indicative Allocation Maximum||Risk Profile|
|Equity and Equity Related Instruments||65%||100%||Medium to High|
|Debt and Money Market Instruments||0||35%||Low to Medium|
|Units issued by REITs and InvITs||0||10%||Medium to High|
|Units of MF schemes||0||5%||Medium to High|
|Equity ETFs||0||10%||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.
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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