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

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

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.
Challengers: The stocks that gain possible market share through superior execution and have an acceptable ROCE or ROE of more than 15%.
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-

Instruments	Minimum % of total assets (Indicative)	Maximum % of total assets (Indicative)	Risk Profile
Equity and Equity related stocks across market capitalization	65%	100%	Moderate to High
Equity ETFs	0%	10%	Moderate to High
Money Market or Debt instruments	0%	35%	Low to Moderate
Units of InvITs or REITs	0%	10%	Moderate to High
Units of other mutual funds schemes	0%	5%	Moderate to High

About the Scheme-

Name of the fund	Canara Robeco Focused Equity Fund
Fund launched by	Canara Robeco Mutual Fund
Asset Management Company	Canara Robeco Asset Management Company Limited
Type of scheme	An open-ended fund of fund scheme primarily investing its assets in 30 companies across the market capitalization.
Investment Objective	The investment objective of the scheme is to generate long-term capital appreciation by investing its assets in equity and equity-related securities of a maximum of 30 companies across large, mid, and small cap.
Benchmark	S&P BSE 500 TRI
Entry Load	Not Applicable
Exit Load	-If units redeemed or switched out within 365 days - 1% of applicable NAV -If units are redeemed or switched out after 365 days - NIL
Taxation	Taxed as Equity -If units are redeemed within 12 months, gains are taxed as short term capital gain tax @15% -If units are sold after 12 months, gains are taxed as long term capital gain tax @10% on the gains exceeding ₹ 1 lakh in a financial year
Minimum Application Amount	₹ 5,000 & in multiples of ₹ 1 thereafter
Minimum Additional Amount	₹ 1,000 & in multiples of ₹ 1 thereafter
STP & SWP	Available
Plans Available	Regular Direct
Options	Growth Dividend Payout Dividend Reinvestment
Fund Managers	Mr. Shridatta Bhandwaldar

SIP Details

Type	Minimum Amount
Monthly SIP	₹1,000 & in multiples of ₹1 thereafter
Quarterly SIP	₹2,000 & in multiples of ₹1 thereafter