Canara Robeco Equity Tax Saver Fund - Tax Savings Plus Diversification
Suparna / 30 Dec 2011
DSIJ's Fund of the Fortnight - Canara Robeco Equity Tax Saver Fund
Canara Robeco Equity Tax Saver Fund is one of the oldest ELSS schemes in India. It benefits from long-term investing due to its lock-in period. The fund has a blended portfolio of Large and Mid-Cap stocks, with a 'growth' style of investing.
Launched in March 1993, the fund had been an average performer till the end of 2006. However, in the last five years, it has seen a reversal in its fortunes. In 2007, the fund delivered 65 per cent returns as compared to the 59 per cent category average returns. During the market meltdown, the fund fell by only 47 per cent as compared to a 56 per cent decline in the average category. Rebounding in 2009 and 2010, the fund delivered 89 per cent and 25 per cent returns as compared to the 82 per cent and 19 per cent return provided by the category in the respective years. YTD, the fund has fallen by 17 per cent as compared to a 23 per cent decline in the category average.
This is a well-diversified fund, with the top 10 holdings accounting for only 34 per cent of the portfolio. The fund is currently biased towards Large-Cap stocks, with around 70 per cent invested in these stocks. In terms of a sectoral breakup, the fund is biased towards Financials, Energy and FMCG, which constitute around 18 per cent, 16 per cent and 11 per cent of the portfolio respectively. The fund is suitable for investors who are keen on participating in the growth story of India through a diversified portfolio and also wish to get tax benefits.
Launched in March 1993, the fund had been an average performer till the end of 2006. However, in the last five years, it has seen a reversal in its fortunes. In 2007, the fund delivered 65 per cent returns as compared to the 59 per cent category average returns. During the market meltdown, the fund fell by only 47 per cent as compared to a 56 per cent decline in the average category. Rebounding in 2009 and 2010, the fund delivered 89 per cent and 25 per cent returns as compared to the 82 per cent and 19 per cent return provided by the category in the respective years. YTD, the fund has fallen by 17 per cent as compared to a 23 per cent decline in the category average.
This is a well-diversified fund, with the top 10 holdings accounting for only 34 per cent of the portfolio. The fund is currently biased towards Large-Cap stocks, with around 70 per cent invested in these stocks. In terms of a sectoral breakup, the fund is biased towards Financials, Energy and FMCG, which constitute around 18 per cent, 16 per cent and 11 per cent of the portfolio respectively. The fund is suitable for investors who are keen on participating in the growth story of India through a diversified portfolio and also wish to get tax benefits.
| Fact Sheet | |
| AMC | Canara Robeco Asset Management Company Ltd |
| Structure | Equity - Tax Planning (ELSS) |
| Investment Option | Growth & Dividend |
| Exit load | Nil |
| Corpus | Rs 302.14 crore (30/09/11) |
| 52 Weeks High/ Low | Rs 22.47 (03/01/11) / Rs 15.78 (20/12/11) |
| Minimum Investment | Rs 500 |
| Benchmark | BSE 100 |
| Launch Date | 34029 |
| Fund Manager/s | Soumendra Nath Lahiri |
| Trailing returns (%) as on 23/12/2011 | ||
| Time Frames | Fund | Category |
| Year-to-Date | -15.67 | -22.97 |
| 1-Year | -14.02 | -21.37 |
| 3-Year | 26.89 | 18.6 |
| 5-Year | 12.31 | 3.36 |
| Returns up to 1 year are absolute and over 1 year are annualized | ||
| Top Five Holdings (% of Net Asset as on 31/10/11) | |
| HDFC Bank | 5.51% |
| Reliance Industries | 4.27% |
| Infosys Technologies | 4.12% |
| Bharti Airtel | 3.61% |
| ITC | 3.41% |
| Total of Ten Holdings | 34.22% |
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