Canara Robeco Focused Equity Fund NFO

Canara Robeco Mutual Fund has announced the launch of the Canara Robeco Focused Equity Fund. The scheme would be predominantly investing its assets in a maximum of 30 equity stocks across the market capitalizations.

The New Fund Offer (NFO) starts from 23rd April 2021 and will end on 07th May 2021. The scheme will reopen for continuous sale and repurchase from 18th May 2021.

Investment Objective 

The investment objective of the scheme is to generate long-term capital growth by investing its assets in equity and equity-related securities of a maximum of 30 companies across large, mid, and small cap market capitalizations.

Features

1. The fund will be investing a minimum of 65% of its assets in equity and equity-related securities.
2. The fund will invest in companies of every market capitalization like large-cap, mid-cap, and small-cap.
3. Along with the equities, the fund may also take exposure to debt securities,money market instruments, and units issued by REITs, and InvITs.
4. As it is a focused fund, the fund will invest in a maximum of 30 high conviction stocks of any sector or market capitalization.
5. The fund will actively allocate the assets on the basis of different ideas.

Why invest in a Focused Equity Fund?

• Focused funds have a nature of a concentrated portfolio of high conviction stocks that signifies the quality of portfolio and its potential to generate returns over the long term.
• The fund only invests in the high conviction stocks that have the capability to offer higher alpha returns.
• The significance is to have an active portfolio management across every sector and market capitalization with optimum weight allocation.

Why Invest in Canara Robeco Focused Equity Fund NFO?

• The fund will have a concentrated portfolio of high-growth and quality companies.
• The scheme is a “Market capitalization agnostic” while being sensitive to liquidity constraints.
• The fund will select the leaders of the sectors which have a proven track record.
• The fund will invest in challengers to generate the alpha to the portfolio through superior earnings growth.

Fund approach for portfolio creation:

The fund will invest in:

1. Leaders: Stocks that have the highest market share in the industry and with average ROCE or ROE more than 18%-20% in the last 10 years.
2. Challengers:  The stocks that gain possible market share through superior execution and have an acceptable ROCE or ROE of more than 15%.
3. Emerging Themes: The fund will identify the new themes and stocks or sectors which are showing cyclical tailwinds.

Who Should Invest?

This scheme is suitable for investors who are -

• Interested in long-term capital growth.
• Investors who are having a higher risk appetite.
• Investors who are looking for higher returns and have the ability to withstand higher volatility.
• Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern-

About the Scheme-

SIP Details