Canara Robeco Infrastructure Fund - Towering Potential

Suparna / 25 Jan 2012

DSIJ's Fund of the Fortnight - Canara Robeco Infrastructure Fund
If you are among those who believe in the growth potential of the Indian infrastructure sector and wish to be a part of it, the Canara Robeco Infrastructure Fund is one that you can’t ignore. This has been one of the most consistent infrastructure funds, which has proved its mettle over longer as well as shorter time horizons. The fund has been in the numero uno position for the one and five-year periods, and in the number two position in the three-year period, having outperformed its peers by a fair margin. 

Infrastructure stocks have been beaten down quite badly in the last few years, and all infrastructure funds’ returns are in the red. This fund, however, has done quite well to restrict its losses as compared to those of its category. Currently, the fund’s PE and P/BV are significantly lower than that of the BSE Sensex, and this is the case for most of the infra stocks. Thus, this sector and consequently this fund present better value and the chance of capital appreciation for investors over the long term. 

This is a Multi-Cap fund, and the fund manager has done quite well to manage risk, as is evident from its Sharpe ratio that stands at 0.56 and is the best in the category. In December 2011, the fund was majorly invested in energy, construction and the engineering sector, which accounted for 75 per cent of its net assets. Such concentration leads to a higher beta, and thus, investors with a high risk appetite can take limited exposure in this fund and remain invested for a longer period.

Fact Sheet
AMC Canara Robeco Asset Management Company Ltd
Structure Equity - Infrastructure
Investment Option  Growth & Dividend
Exit Load  1% for redemption within 365 days 
Corpus Rs 119.65 crore (31/12/11) 
52 Weeks' High/ Low Rs 23.33 (26/04/11) / Rs 18.24 (20/12/11)
Minimum Investment Rs 5000
Benchmark BSE 100
Launch Date 1-Nov-05
Fund Manager/s Soumendra Nath Lahiri & Yogesh Patil

Trailing returns (%) as on 20/01/2012         
Time Frames Fund  Category 
Year-to-Date 9.44 12
1-Year -7.86 -17.64
3-Year 24.4 16.56
5-Year 6.54 2.45
Returns up to 1 year are absolute and over 1 year are annualized

Top Five Holdings (% of Net Asset as on 31/12/11)
ACC 6.48%
Power Gird Corporation  6.17%
Reliance Industries 5.31%
Bharat Electronics 4.12%
Bharti Airtel 4.04%
Total of Ten Holdings43.42%

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