Canara Robeco Balance - Growth Plan

Canara Robeco Balance is a balanced mutual fund. This fund is being managed by Soumendra Nath Lahiri since April 2011. The fund has been through much clamorous times. Yet it has had a solid stock-picking record and has through the years learnt to reduce the risk of falling. This is a good fund to hold on to for the long term.

Where does Canara Robeco Balance invest your money?

Canara Robeco Balance fund is an equity oriented hybrid fund which invests your money in both equity securities and debt securities. It has about 67% exposure to equities. Its equity portion has multi cap exposure means most of your money will be invested in stocks of large and medium sized companies.  Large cap companies tend to be stable compared to mid cap and small cap companies but it is mid cap companies that are expected to give kicker returns. Canara Robeco Balance fund has 24% exposure to mid size companies and 18% exposure to small size companies. 

Suitable for what?

The following needs if occurring between 3 and 5 years:

  • Child's Education
  • Marriage
  • Home Purchase
Not suitable for?
  • Long term needs
  • Creation of wealth
How has Canara Robeco Balance fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched at Feb1993, your value of investments would be around Rs 6.2 lakhs. The performance has been better or similar to other equity oriented hybrid mutual funds. The fund has been giving at around 10% every year for those who stayed invested since inception.

Assume you had invested Rs 10,000 every month in Canara Robeco Balance fund through SIP since the last five years today you would have around Rs 7.9 lakhs.

How will Canara Robeco Balance perform in the future?

Needless to say no one can predict the future of markets. We have firm belief in the future prospects of the Indian economy. If the Indian economy grows at 8% then the leading companies tend to do well. When the companies do well their stock prices follow their performance. 


So if you expect the economy to grow at 8% then you can expect top performing equity mutual funds to give you returns in excess of 12%. Debt funds are expected to give anywhere between 0.5%-3% higher returns than Fixed Deposits.
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 1000 per month. Do not make the mistake of investing in too many mutual fund schemes. One good fund or at the most two are enough to take care of needs expected to arise in the medium term of 3-5 years.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
What charges apply?

A onetime fee of Rs 100 is charged on investments over Rs 10,000 made through distributors. If you are a first time investor in mutual funds an additional Rs 50 is charged to cover KYC expenses. This is deducted from your investment and can be skipped if you buy directly from the mutual fund via their website or offices.

If units are sold within a year an exit load of 1% is deducted from your total returns. No exit load applies for units withdrawn post one year. Expense ratio of Canara Robeco Balance fund is 2.65%. This is charged to recover the fund management company’s expenses on securities’ transactions, commissions, registrar fees, etc. Your mutual fund returns will be total returns less expense ratio.

When to exit?

Withdraw when your goals are close to achievement. Do not remove the money when the markets go up or down. Do not panic. Stick to your goals.

What are the tax implications?

Returns on equity oriented hybrid funds are absolutely tax-free provided you do not withdraw within a year of buying the units. Canara Robeco Balance fund does not qualify for sec 80C ELSS benefits.

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