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

Surrender ULPPs

  ICICI Pru LifeTime and ICICI Pru Lifestage are Unit Linked Pension Plans. Such insurance linked retirement plans are neither good investments nor do they offer sufficient insurance cover. As you can see, these have turned out to be bad deals. In the Lifetime plan, the fund value is not even equal to the total premiums that you have paid and in the Lifestage plan your return is just about 6% which is quite low. The mortality charges are as per your age which is why they have increased. Moreover, once these plans matures, you will have to compulsorily opt for annuity (regular income) and the annuity rates are generally modest. Assuming these plans mature in the next one year, it will be wise to surrender the plan now and curb your future commitments.   Before you choose to buy a term plan, you have to consider a few points. You need to insure yourself, only during the time you are working and your family is financially dependent on you. At the age of 59, not all insurance companies w...

Sundaram Mutual Fund new plan Sundaram Fixed Term Plan CJ

Sundaram Mutual Fund has announced the launch of a new fund named as Sundaram Fixed Term Plan CJ. The new issue will be closed for subscription on January 30. --------------------------------------------- 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 are: 1. HDFC TaxSaver 2. ICICI Prudential Tax Plan 3. DSP BlackRock Tax Saver Fund 4. Birla Sun Life Tax Relief '96 5. Reliance Tax Saver (ELSS) Fund 6. IDFC Tax Advantage (ELSS) Fund 7. SBI Magnum Tax Gain Scheme 1993 8. Sundaram Tax Saver   -...

Group Health Insurance

Buy Group Health Insurance Online   For Human Resources, the biggest challenge today is to decide whether medical benefits should be offered to employees or not, what type of plans should be offered, what will be the cost and how will the cost be split between employees and employer. Well, most of these are subjective and would depend on a lot of factors including company size, average employee salary, etc. However, this article will give you a fair idea on how you should go about deciding these factors: 1. Why offer group health insurance benefit to employees : Studies have proved that retention rates among employers offering GHI are much higher than the ones who are not offering. Moreover, the cost of providing this benefit as a percentage of salary is very low as compared to the perceived value. As an example, say if average salary of an employee in your organization is 4 LPA. If you decide to offer a health insurance benefit to him for a Sum insured of ...

Choose gold ETF over Physical Gold

Investing in gold is overall a good portfolio hedging strategy as long as gold does not account for more than 5-10 per cent of your investment portfolio. Between physical gold and gold ETF, investing in gold ETF is a better proposition because these funds invest in physical gold making them the closest to investing in physical gold at no risk of holding physical gold.   You will need to have a demat account to invest in gold ETFs and there is little to choose between any of the gold ETFs, you can pick any fund that you wish to as long as you pick the fund with the lowest expense ratio.   -----------------------------------------------------------------   Also, know how to buy mutual funds online:   1) DSP BlackRock Mutual Funds: http://prajnacapital.blogspot.com/2011/05/buying-dsp-blackrock-mutual-funds.html   2) Reliance Mutual Funds: http://prajnacapital.blogspot.com/2011/06/buying-reliance-mutual-funds-online.html   3) Reliance Mutual Funds: http://prajnacapital....

Commercial Paper (CP)

Invest Mutual Funds Online Download Mutual Fund Application Forms Commercial Paper (CP): These are issued by corporate entities in denominations of Rs.2.5mn and usually have a maturity of 90 days. CPs can also be issued for maturity periods of 180 and one year but the most active market is for 90 day CPs.   Two key regulations govern the issuance of CPs-firstly, CPs have to be compulsorily rated by a recognized credit rating agency and only those companies can issue CPs which have a short term rating of at least P1. Secondly, funds raised through CPs do not represent fresh borrowings for the corporate issuer but merely substitute a part of the banking limits available to it. Hence, a company issues CPs almost always to save on interest costs ie it will issue CPs only when the environment is such that CP issuance will be at rates lower than the rate at which it borrows money from its banking consortium. ----------------------...
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