Skip to main content

Canara Robeco Balance Fund

Invest In Tax Saving Mutual Funds Online

Call 0 94 8300 8300 (India)

 

 

Are you a conservative investor or a new investor looking to participate in equities, while wanting to limit its downside risks? Then Canara Robeco Balance may be a good fund to start with for you.


Had you invested in this fund every month in the past five years through SIPs, then your annual return would be 11.4 per cent. That's higher than the 7.7 per cent return of the benchmark Crisil Balanced Fund Index, using the same SIP route.

Suitability


Canara Robeco Balance delivers what a balanced fund ought to – better than equity index returns for lower volatility and lower downside risks. The fund has proven its mettle in managing downside markets exceptionally well, and is therefore suitable for investors looking for such a feature.

If you are merely diversifying your all-equity portfolio with a balanced fund, and if you can take some volatility, then you should prefer funds such as HDFC Prudence or Tata Balanced over this fund.

If you are investing now, you can consider either a lump sum investment or SIPs in the fund. While we do not normally advocate a lump sum approach, the current market conditions, together with the fact that the fund's NAV does not swing wildly means that a lump sum may not do much harm, if you have a very long-term investment approach (5-10 years). You can also top up a lump sum amount with small SIPs.

Performance


Canara Robeco Balance is best known for containing declines well. In the 2008 down market, for instance, it fell 38 per cent even as HDFC Prudence slipped 42 per cent and Tata Balanced dropped by 44 per cent. It did even better in 2011, containing the fall to just 9.7 per cent, while the balanced fund category, on an average, fell by 16 per cent.

Canara Robeco Balance falls short of performance when compared with the two balanced funds from HDFC, on a risk-adjusted return basis over the last five years. But it is almost at par with Tata Balanced, the latter having relatively higher exposure to mid-cap stocks than Canara Robeco Balance.

That said, the fund is by far the most consistent performer in the balanced fund category. It beat its benchmark 97 per cent of the times on a one-year rolling return basis over the last three years. While ICICI Pru Balanced managed as much, HDFC Balanced and Tata Balanced score only 89-90 per cent on this parameter. This simply suggests that while the other funds may outperform the benchmark by a good mile, they may not be as consistent as Canara Robeco Balance in beating the benchmark.

The fund also comfortably beat the large-cap equity fund average of 3 per cent and 5 percent in the last three and five years respectively, thanks to a better performing debt market.

Portfolio


Canara Robeco Balance's limited risk-return profile stems from two fundamental attributes: one, it holds a more large-cap focused portfolio compared with most other top balanced funds.

Two, it mostly restricts its equity exposure to a little under 70 per cent, even as most others easily touch 75 per cent. These two reasons will therefore limit the upside for this fund in a steady rallying market. This is why this fund may not suit high-return seekers.

Canara Robeco Balance holds a highly diversified equity portfolio with as many as 60 stocks. Barring a couple of stocks, individual exposure to the rest is less than 3 per cent each. Close to two-thirds of the equity holdings are in large-cap stocks, with a market-cap of over Rs 10,000 crore.

But the fund has interesting mid and small-cap picks such as Prestige Estate Projects, Sadbhav Engineering, Kajaria Ceramics and VA Tech Wabag. Evidently, the fund likes to take exposure, albeit limited, in unpopular sectors such as real estate, construction and engineering. But individual exposure to these stocks remains low.

In the course of the last one year, the fund upped its exposure to banking even as it shed FMCG stocks and increased its holding in IT. With a weak rupee and IT giants, such as Infosys, making a slow comeback in the last earnings season, the fund's decision to shuffle holdings may have been well timed.

The fund's debt portfolio is reasonably liquid, what with 15 per cent of its total assets in money market instruments. Another 15 per cent is held in public sector and private company bonds.


The fund's management changed hands six months ago. It is now managed by Krishna Sanghavi and Suman Prasad. It was earlier managed by Soumendra Nath Lahiri.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

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 in Tax Saving Mutual Funds ( ELSS Mutual Funds ) to upto Rs 1 lakh and Save tax under Section 80C.

Invest Tax Saving Mutual Funds Online

Tax Saving Mutual Funds Online

These links can be used to Purchase Mutual Funds Online that are regular also (Investment, non-tax saving)

Download Tax Saving Mutual Fund Application Forms from all AMCs

Download Tax Saving Mutual Fund Applications

These Application Forms can be used for buying regular mutual funds also

Some of the best Tax Saving Mutual Funds available ( ELSS Mutual Funds )

  1. ICICI Prudential Tax Plan Invest Online
  2. HDFC TaxSaver Invest Online
  3. DSP BlackRock Tax Saver Fund Invest Online
  4. Reliance Tax Saver (ELSS) Fund Invest Online
  5. Birla Sun Life Tax Relief '96 Invest Online
  6. IDFC Tax Advantage (ELSS) Fund Invest Online
  7. SBI Magnum Tax Gain Scheme 1993 Invest Online
  8. Sundaram Tax Saver Invest Online
  9. Edelweiss ELSS Invest Online

------------------

Best Performing Mutual Funds

    1. Largecap Funds Invest Online
      1. DSP BlackRock Top 100 Fund
      2. ICICI Prudential Focused Blue Chip Fund
      3. Birla Sun Life Front Line Equity Fund
    2. Large and Midcap Funds Invest Online
      1. ICICI Prudential Dynamic Plan
      2. HDFC Top 200 Fund
      3. UTI Dividend Yield Fund
    1. Mid and SmallCap Funds Invest Online
      1. Reliance Equity Opportunities Fund
      2. DSP BlackRock Small & Midcap Fund
      3. Sundaram Select Midcap
      4. IDFC Premier Equity Fund
    1. Small and MicroCap Funds Invest Online
      1. DSP BlackRock MicroCap Fund
    1. Sector Funds Invest Online
      1. Reliance Banking Fund
      2. Reliance Banking Fund
    1. Tax Saver MutualFunds Invest Online
      1. ICICI Prudential Tax Plan
      2. HDFC Taxsaver
      3. DSP BlackRock Tax Saver Fund
      4. Reliance Tax Saver (ELSS) Fund
    2. Gold Mutual Funds Invest Online
      1. Relaince Gold Savings Fund
      2. ICICI Prudential Regular Gold Savings Fund
      3. HDFC Gold Fund

Popular posts from this blog

Mirae Asset Healthcare Fund

Best SIP Funds to Invest Online   Mirae Asset Global Investments (India) has launched Mirae Asset Healthcare Fund. The NFO of the fund will be open from June 11, 2018 to June 25, 2018. Mirae Asset Healthcare Fund is an open-ended equity scheme investing in healthcare and allied sectors. The scheme will invest in Indian equities and equity related securities of companies that are likely to benefit either directly or indirectly from healthcare and allied sectors. The investment strategy of this scheme aims to maintain a concentrated portfolio of 30-40 stocks. Healthcare is a broad secular theme that includes pharma, hospitals, diagnostics, insurance and other allied sectors. The fund will have the flexibility to invest across markets capitalization and style in selecting investment opportunities within this theme. Neelesh Surana and Vrijesh Kasera will manage this fund. In a press release, Swarup Mohanty, CEO, Mirae Asset Global Inves...

How to Decide your asset allocation with Mutual Funds?

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India) How to Decide your asset allocation ? The funds that base their equity allocation on market valuation have given stable returns in the past. Pick these if you are a buy-and-forget investor. Small investors are often victims of greed and fear. When markets are rising, greed makes the small investor increase his exposure to stocks. And when stocks crash to low levels, fear makes him redeem his investments. But there are a few funds that avoid this risk by continuously changing the asset mix of their portfolios. Their allocation to equity is not based on the fund manager's outlook for the market, but on its valuations. Our top pick is the Franklin Templeton Dynamic PE Ratio Fund, a fund of funds that divides its corpus between two schemes from the same fund house-the...

GOLD ETFs

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   GOLD ETFs       Gold funds and ETFs have also lost the tax advantage they enjoyed over physical gold after the Budget changed the rules for long-term capital gains from non-equity funds.   Last year, gold exchange traded funds ( ETFs ) had gained a great deal from the depreciation in the rupee and the UPA government's move to impose additional levy on gold imports, making it an attractive option for investors. The landed price of the yellow metal had surged, pushing up the net asset value ( NAV ) of gold ETFs. However, the recent budget proposal by Finance Minister Arun Jaitley has thrown a spanner in the works for gold fund investors. The revised tax structure for all non-equity funds, includi...

IIFL NCDs

Buy Gold Mutual Funds Invest Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Call 0 94 8300 8300 (India) IIFL NCDs IIF's six-year unsecured NCD 2012 Risk-wary investors should stay away from this issue, and even, risk-taking ones should think twice It is a public issue of unsecured redeemable non-convertible debentures ( NCDs ) by India Infoline Finance ( IIF ), an unlisted company, which is a 98.9 per cent subsidiary of India Infoline, a listed company. The issue seeks to raise Rs 250 crore with an option to retain over-subscription up to Rs 250 crore taking the total potential issue amount to Rs 500 crore. It will be open for public subscription from September 5 to September 18 with a minimum application size of Rs 5,000 in the form of five NCDs of face value Rs 1,000, TENURE & RATES: IIF will redeem the NCDs at the end of six years, and investors wanting out before six years will be able to sell the...

Tax saving tools to maximise returns

  An Individual can claim a deduction up to Rs 1 lakh U/S 80C of the Income-Tax Act, 1961 ('Act') by incurring a certain expenditure or making specified investments. Few of the popular schemes which are generally availed of by the individuals, inter-alia, include the following: Expenditure-Related Deductions Broadly, the expenditure-related deductions include tuition fees and home loan payments.    Tuition fees for full-time education in any Indian university, college, school, and educational institution, for any two children is eligible for deduction. However, development fees or donations are not considered.    The principal amount re-paid against a home loan to banks or certain category of employers is also eligible for deduction. Stamp duty, registration fees and other expenses incurred for the purpose of acquisition of such a house property are also eligible for deduction.    It should, however, be noted that the cost of renovation/house repairs after the completio...
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