Fund of Fortnight
Sayali Shirke / 20 Mar 2025/ Categories: DSIJ_Magazine_Web, Fund of Fortnight, MF - DSIJ Recommendation, Mutual Fund
Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.
This is our mutual fund recommendation. Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same.[EasyDNNnews:PaidContentStart]
Reason for recommendation
Large-Cap funds offer a crucial blend of stability and consistent performance in the current volatile market environment. With global macroeconomic risks such as Trump's tariffs, geopolitical uncertainties, and interest rate fluctuations, large-cap companies are known for their financial strength and market leadership, providing a relatively safer investment avenue.
The Canara Robeco Bluechip Equity Fund is one such fund that has consistently outperformed its category average across multiple timeframes. Over the past three months, the fund recorded a return of negative 9.35 per cent, which is better than the category average of negative 10.51 per cent. Over a one-year period, the fund delivered 7.46 per cent, significantly outperforming the category's 4.43 per cent.
The fund has a well diversified portfolio with a strong emphasis on the financial sector, constituting 29.59 per cent of the holdings. The technology sector follows with 10.44 per cent. Energy and automobile sectors contribute 8.15 per cent and 7.69 per cent, respectively. The fund’s top five holdings indicate a strong inclination towards bluechip stocks.
In terms of risk adjusted returns, the fund presents a balanced
profile. It has a standard deviation of 12.39 and a beta of 0.89, indicating lower volatility compared to its peers. The fund's controlled risk parameters make it suitable for conservative investors seeking stable growth.
The Fund stands out due to its consistent outperformance, well-diversified sector allocation, and lower volatility compared to peers. It offers a potent blend of financial sector stability and growth from technology, energy, and automobile industries. This fund remains a reliable choice for conservative investors seeking long-term wealth creation with reduced downside risk.
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