Skip to main content

Mutual Fund Review: Canara Robeco Equity Tax Saver

 

 

Canara Robeco Equity Tax Saver, in existence since September 1998, is a diversified equity fund, with its portfolio spread across capitalisations. Managed by Anand Shah (head – equities) since September 2008, it managed assets aggregating Rs 185 crore as on June. The fund has been ranked CRISIL~CPR 1 in the latest ranking for the quarter ended March, under the ELSS (Equity-Linked Savings Scheme) category. Further, the fund has been in the topmost cluster in five of the past nine quarters.

Performance It has performed better than its peers and benchmark index (BSE 100) across various time periods (see performance chart). However, its performance was choppy in the first few years since its inception. Hence, from then, the outperformance has been lower at 52 per cent. During the latest five-year period, though, it outperformed its benchmark index on almost 70 per cent of occasions in terms of one-year returns calculated every month (including the latest 22 months of consecutive outperformance). The fund also capitalised on the rebound of 2009, appreciating by 141 per cent from February 2009 till date, compared to 106 per cent of the benchmark index.

If one had invested Rs 1,000 at the inception of the scheme (September 1998), the initial capital would have grown almost nine times to Rs 8,959 visà-vis Rs 6,922 in the benchmark index, indicating a compounded annual growth rate of 20 per cent for the scheme and 18 per cent for the benchmark index.

Similarly, if one had invested in the fund through a systematic investment plan (SIP) for three years (coinciding with the lock-in period for ELSS), the invested capital would have grown at 31 per cent vis-a-vis 16 per cent in the benchmark index.

The scheme's performance on risk-adjusted return, relative to its peers, is high and a key factors for propelling its performance to CRISIL~CPR 1. The fund has a Sharpe ratio (risk-adjusted returns above arisk-free rate) of 1.42, considerably higher than that of its peer average (0.94) and benchmark index (0.60). The CRISIL~CPR ranking methodology assigns highest weightage to risk-adjusted performance measured by superior returns score (SRS), as it underscores a fund's ability to post higher returns with lower volatility relative to its peers.

Portfolio analysis The fund maintains a fairly diversified portfolio across market capitalisations. On an average, the fund has maintained investments in 38 stocks across 20 sectors over a three-year period.

It follows an aggressive investment style, demonstrated from the high level of churning in the portfolio. The fund also takes active cash calls and goes high on cash, based on the fund manager's view on the market. Over the past three years, the fund's investment in equity has moved between 78 per cent and 96 per cent. During this period, telecom services, banks and refineries accounted for around 31 per cent of its portfolio. The fund has considerably increased its exposure to banks, with almost a quarter of the portfolio exposed to the sector over the past one year, compared to less than 20 per cent in the yearago period.

A two-year analysis of the portfolio indicates banks, pharmaceutical and media & entertainment companies contributed the most to overall portfolio gains. Prominent stock performers were HDFC Bank, Bank of Baroda, Sun TV Network, Axis Bank, IndusInd Bank, SBI and Torrent Pharmaceuticals.

 


Popular posts from this blog

Rs 14,000 Crore worth of tax free bonds coming soon from NHAI , PFC

  NHAI, PFC file prospectuses, coupon rate not yet decided MORE debt investment options have opened up for investors with AAA rated tax-free bonds worth over Rs 14,000 crore lined up. The National Highway Authority of India ( NHAI ) and Power Finance Corporation ( PFC ) are offering Rs 10,000 crore and Rs 4,033.13 crore worth of tax-free bonds, respectively, as per prospectuses filed with the Securities and Exchange Board of India (Sebi). Of a Rs 5,000 crore issue by PFC, Rs 966.87 crore has already been raised through private placement on September 28 and November 1. Tax-free bonds give investors tax-free return on any amount invested. In another kind of bonds, the long-term infrastructure bonds, investments up to Rs 20,000 are tax exempt, that is this cap amount can be deducted from the taxable income. Accordingly, the NHAI prospectus has clarified that only the amount of interest from -and not the actual investment on -its new bonds will be tax-free. "NHAI's publ...

Change in Fund Manager for some of HSBC Mutual Fund Schemes

Buy Gold Mutual Funds Invest Mutual Funds Online Download Mutual Fund Application Forms Call 0 94 8300 8300 (India) However, this facility is only available to Unit holders who have been assigned a folio number by the AMC.   HSBC Mutual Fund has announced that the below mentioned schemes shall be managed by the new fund managers as stated in the table. The effective date will be July 02, 2012.   Amaresh Mishra 's will be Vice President and Assistant Fund Manager. Having done a Post graduate diploma in Business Management and Bachelor of Chemical Engineering, he has over seven years of experience in Equities and Sales.   Mr. Piyush Harlalka's designation shall be Vice President- Fixed Income. Qualified as a C.A., C.S. and holding M.B.A.( Finance degree), he has over six years of experience in Fund management and ...

How EEE and EET Tax affect Retirement Investments

  An important factor while choosing a financial product is its taxation , and for retirement savings, this is even more important as the sums involved are usually life-long savings. Here's a look at the current tax treatment of three major long-term retirement planning products, which are - Employees' Provident Fund (EPF), Public Provident Fund (PPF) and National Pension System (NPS). EPF The tax treatment is EEE, which means your money is exempt from taxes at the time of investment, accumulation and withdrawal. At the time of investment, the tax deduction is under the limit of section 80C of the Income-tax Act , which is currently Rs 1.5 lakh. Partial withdrawals are also tax-free if made after 5 years of continuous service. If withdrawals are made before 5 years of service, 10% tax will be deducted at source. Exceptions have also been provided for transfer of amount and conditions wherein the subscriber is unemployed for more than 2 months or the loss of job was beyond th...

Personal Finance: You can insure your wedding

But luck may not always be on your side. With the frequency of such attacks, as also other risks and unforeseen accidents growing, a wedding insurance is something you may want to look at if a marriage is being planned in the family. Event insurance plans like this is still in its nascent stages due to low awareness. And given the sacred nature of the ritual, nobody wants to discuss or think negative. But as wedding spends and risks grow, it makes sense to cover the potential monetary loss. The policy in those countries even covers the loss of the wedding ring, the wedding gown not reaching on time and even the expenses/loss due to late or non-appearance of the photographer which may mean staging the event once again for the photograph. In India, most insurance companies — including ICICI Lombard General Insurance, Oriental Insurance, Bajaj Allianz and National Insurance — offer wedding insurance. The policy is tailor made to individual requirements and needs. The sum insur...

DSP BlackRock MidCap Fund

Best SIP Funds Online   HOW HAS DSP BlackRock Small & Mid Cap Fund PERFORMED? With a 10-year return of 14.61%, the fund has outperformed both the category average (12.34%) and the benchmark (10%) by a good margin. Should you invest in DSP BlackRock Small & Mid Cap Fund? This fund invests predominantly in mid-cap stocks but takes a sizeable exposure in small-caps as well. The focus is on nascent companies with high growth potential. The fund manager places emphasis on quality and avoids inferior businesses even if these look tempting from a valuation perspective. Over the past year, the fund portfolio has grown, having added to some of the underperforming sectors like chemicals and healthcare. Its portfolio churn has come down significantly. The heavily diversified portfolio is run completely agnostic of its benchmark index— most bets are from outside the index—which can at times lead to bouts of underperformance as seen in the recent years....
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now