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

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...

WEALTH TAX

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 WEALTH TAX   WHAT CONSTITUTES WEALTH? For wealth tax purposes, "wealth" means property , urban land, car, jewellery , yacht, boat, aircraft and cash in hand in excess of Rs 50,000. CAUTION POINT | Do not think you will have an easy escape from wealth tax by transferring your `wealth' without consideration to your spouse or minor child. Such assets will also be considered as your wealth. HOW TO DETERMINE YOUR TAXABLE WEALTH Add the taxable value of the above assets (computed as per the detailed rules for valuation) owned by you as on March 31 (for FY 2014-15, it will be March 31, 2015). In case you sold your car during the year, it will not be taxable wealth. Deduct loans if any obtained by you to acquire any of the taxable assets from the value of gross tax out for at least 300 days in a...

Equity Savings Fund

Invest Equity Savings Fund Online   The best part about these funds is that they are subject to equity fund taxation and at the same time are structured like MIP like funds . This new category, equity savings funds , offer a little of everything. They allocate money to equities & equity related instruments, and fixed income. They aim to generate returns by diversification. Such funds invest in fixed income and arbitrage to protect the investors from short term volatility and equity for capital gains. The best part of these funds is that they are subject to equity fund taxation and at the same time are structured like MIP funds.   MIP funds however are subject to debt fund taxation. Investors Equity savings funds are suitable for the following: First time investors who seek partial exposure to equity with less volatility and greater stability Investors seeking moderate capital appreciation with relatively lower risk Those wh...

How to Pick Top Performing Mutual Fund Schemes

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   How to Pick Performing Schemes  Funds that continue to stay in the top grade of performance over longer periods are the ones to bet on, advise investment experts   The mutual fund performance charts of the past few months make for an impressive reading. Funds across all categories boast of stellar returns. Sample this: The mid and small cap category has averaged 77 percent return over the past 12 months, with the best fund delivering a staggering 120 percent. The tax-saving funds also average an impressive 51 percent, including a fund which has soared 92 percent. Many of the table-toppers are funds of proven quality and track record. However, there are also schemes that are not that well-known. Some of these have rarely made it to the performance charts in the past, yet, of late, they bo...

8% Government of India Bonds quick guide

For those seeking comfort in safety of returns, the Government of India issued 8% savings bond once again comes to the fore. First launched in 2003, these bonds are issued by the government with a maturity of 6 years. The bonds are available at all times with specified distributors through whom you can apply to invest in them. Here is a quick guide to what the bond offers and its features to ascertain to check for suitability. What are Government of India bonds Government of India bonds are like any other government bonds with specified rate of interest. The rate is fixed at 8% per annum paid half yearly, or you can opt for cumulative payment of interest at the end of the tenure. You can buy these bonds from State Bank of India and its associates, other nationalized banks and some private sector banks such as HDFC Bank Ltd and ICICI Bank Ltd, among others. The bonds can be bought from the offices of Stock Holding Corporation of India as well. They are available in physical form onl...
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