Canara Robeco Emerging Equities Fund

Canara Robeco Emerging Equities Fund is being managed by Soumendra Nath Lahiri. It was a good performer in the past but it has given a lackluster performance in the last one year. If you have invested in this fund, keep a close watch on where performance is headed. This fund does not deserve more than 30% of your total investment corpus. If you are a new investor you can skip this one for a better performing mid cap fund.

Where does Canara Robeco Emerging Equities Fund invest your money?

Canara Robeco Emerging Equities Fund is a small and mid cap fund which invests your money predominantly in stocks of mid cap and small cap companies of high growth or having prospects of high growth in the future. Small and mid size companies have the potential to become large companies and when that happens you are expected to get bumper returns. The fund allocates about 56.04% to medium cap companies and 35.58% to small cap companies.

Suitable for what?
  • Creating wealth
  • Lifestyle needs
Not suitable for?
  • Child's education
  • Child's marriage
  • Retirement Planning
  • Home Purchase
  • Short term needs
How much to invest?

Minimum one time investment is Rs 5000 and minimum SIP is Rs 1000 per month. Do not make Canara Robeco Emerging Equities Fund as part of your core portfolio. Core portfolio is investments that are made for your basic goals and makes up about 70% of your investment portfolio. Canara Robeco Emerging Equities Fund can be part of your satellite portfolio. Do not make the mistake of investing in too many mutual fund schemes. At any point of time do not have more than two mutual fund schemes in your core portfolio.

Our recommendation for fresh investment
Not Recommended
Our recommendation for existing investment
Recommended
How has Canara Robeco Emerging Equities Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in Nov 2005 the value of your investments would be around Rs 2.50 lakhs. If you had invested Rs 1 lakh five years back it would have become Rs 1.35 lakhs. The performance has been not better than or similar to other mutual funds in this category. The fund has been giving at around 6.25% every year for those who stayed invested for last 5 years.

Assume you had invested Rs 10,000 every month in Canara Robeco Emerging Equities Fund through SIP for the past 5 years today you would have just around Rs 8.85 lakhs.

How will Canara Robeco Emerging Equities Fund 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 9% then the leading companies tend to do well. When the companies do well their stock prices follows their performance. So if you expect the economy to grow at 9% then you can expect top performing mutual funds to give you returns in excess of 15%. We advise you to avoid too much of star gazing and future prediction.  

Mutual fund schemes that have exposure to mid size companies tend to show results when their bet on few companies comes true. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for a mid cap fund should be to earn higher return than on a diversified large cap fund.

When to review the performance?

Once you invest in the fund do not get into the habit of checking the NAV daily or monthly. Review the performance once a year. Too much attention is not good.

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 Emerging Equities Fund is 2.50%. 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 closer 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?

The returns in a mutual fund are absolutely tax free, provided you do not withdraw within 1 year. Canara Robeco Emerging Equities Fund does not qualify for sec 80C ELSS benefits.

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