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

ULIP Review: ProGrowth Super II

  If you are interested in a death cover that's just big enough, HDFC SL ProGrowth Super II is something worth a try. The beauty is it has something for everybody — you name the risk profile, the category is right up there. But do a SWOT analysis of the basket, and the gloss fades     HDFC SL ProGrowth Super II is a type-II unit-linked insurance plan ( ULIP ). Launched in September 2010, this is a small ticket-size scheme with multiple rider options and adequate death cover. It offers five investment options (funds) — one in each category of large-cap equity, mid-cap equity, balanced, debt and money market fund. COST STRUCTURE: ProGrowth Super II is reasonably priced, with the premium allocation charge lower than most others in the category. However, the scheme's mortality charge is almost 60% that of LIC mortality table for those investing early in life. This charge reduces with age. BENEFITS: Investors can choose a sum assured between 10-40 times the annualised premium...

Am you Required to E-file Tax Return?

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300   Am I Required to 'E-file' My Return? Yes, under the law you are required to e-file your return if your income for the year is Rs. 500,000 or more. Even if you are not required to e-file your return, it is advisable to do so for the following benefits: i) E-filing is environment friendly. ii) E-filing ensures certain validations before the return is filed. Therefore, e-returns are more accurate than the paper returns. iii) E-returns are processed faster than the paper returns. iv) E-filing can be done from the comfort of home/office and you do not have to stand in queue to e-file. v) E-returns can be accessed anytime from the tax department's e-filing portal. For further information contact Prajna Capit...

IDFC - Long term infrastructure bonds - Tranche 2

IDFC - Long term infrastructure bonds What are infrastructure bonds? In 2010, the government introduced a new section 80CCF under the Income Tax Act, 1961 (" Income Tax Act ") to provide for income tax deductions for subscription to long-term infrastructure bonds and pursuant to that the Central Board of Direct Taxes passed Notification No. 48/2010/F.No.149/84/2010-SO(TPL) dated July 9, 2010. These long term infrastructure bonds offer an additional window of tax deduction of investments up to Rs. 20,000 for the financial year 2010-11. This deduction is over and above the Rs 1 lakh deduction available under sections 80C, 80CCC and 80CCD read with section 80CCE of the Income Tax Act. Infrastructure bonds help in intermediating the retail investor's savings into infrastructure sector directly. Long term infrastructure Bonds by IDFC IDFC issued an earlier tranche of these long term infrastructure bonds on November 12, 2010. This is the second public issue of long-te...

Section 80CCD

Top SIP Funds Online   Income tax deduction under section 80CCD Under Income Tax, TaxPayers have the benefit of claiming several deductions. Out of the deduction avenues, Section 80CCD provides t axpayer deductions against investments made in specific sector s. Under Section 80CCD, an assessee is eligible to claim deductions against the contributions made to the National Pension Scheme or Atal Pension Yojana. Contributions made by an employer to National Pension Scheme are also eligible for deductions under the provisions of Section 80 CCD. In this article, we will take a look at the primary features of this section, the terms and conditions for claiming deductions, the eligibility to claim such deductions, and some of the commonly asked questions in this regard. There are two parts of Section 80CCD. Subsection 1 of this section refers to tax deductions for all assesses who are central government or state government employees, or self-employed or employed by any other employers. In...

Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 Merger of Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund Tata Mutual Fund has decided to merge Tata Indo-Global Infrastructure Fund with Tata Equity Opportunities Fund, with effect from January 16, 2015.   Investors of Tata Indo-Global Infrastructure Fund can redeem/ switch out units from December 13, 2014 to January 12, 2015 without paying any exit load. For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call Leave a missed Call on 94 8300 8300 Leave your comment with mail ID and we will answer them OR You can write back to us at PrajnaCapital [at] Gmail [dot] Com --------------------------------------------- Invest Mutual Funds Online Invest Any Mutual Fund Online Download Mutual Fund Application Forms from all AMCs Download Mutual Any Fund A...
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