Canara Robeco Equity Tax Saver Fund

Canara Robeco Equity Tax Saver fund is being managed by Krishna Sanghvi. Investing in this fund enables the investors to avail the income tax rebate, as permitted from time to time. The fund has given excellent returns in market rally and kept its own in a downturn. This is a great fund to invest in for the long term.

Where does Canara Robeco Equity Tax Saver Fund invest your money?

Canara Robeco Equity Tax Saver fund is a multi cap equity fund which invests your money in stocks of large, mid and small sized companies. Large cap companies tend to be stable compared to mid cap and small cap companies. Small and mid sized companies have the potential to become large companies and when that happens you are expected to get bumper returns. This fund has 75.43% exposure to large cap stocks, 17.16% exposure to mid cap stocks and 7.40% exposure to small cap stocks. The portfolio is overweight in banking and financial services sector.

Suitable for what?
  • Tax saving
  • Child's marriage
  • Child's education
  • Retirement Plans
  • House Purchase
Not Suitable
  • Wealth creation
  • Lifestyle needs
  • Short term needs

 

 

How much to invest?

Minimum one time investment is Rs 500 and minimum SIP is Rs 500 per month. 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. Core portfolio is investments that are made for your basic goals. Canara Robeco Equity Tax Saver Fund can be part of the core portfolio.

Our recommendation for fresh investment
Recommended
Our recommendation for existing investment
Recommended
How has Canara Robeco Equity Tax Saver Fund performed in the past?

If you had invested Rs 1 lakh when the fund was launched in March 1993, your value of investments would be around Rs 2.88 lakhs. If you had invested Rs 1 lakh 5 years back, your value of investments would be around Rs 1.66 lakhs. The performance has been better or similar to other large cap mutual funds. The fund has been giving 10.79% returns for those who have stayed invested for the past 5 years.

Assume you had invested Rs 10,000 every month in Canara Robeco Equity Tax Saver fund through SIP for the past 5 years today you would have around Rs 8.73 lakhs.
How will Canara Robeco Equity Tax Saver 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 follow 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. Be reminded that equities are one of the asset classes that have the potential to beat inflation. Your aim for core portfolio should be to beat inflation.

When to review?

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.

No exit load applies for units withdrawn from this scheme. But there is lock-in of 1095 days. Expense ratio of Canara Robeco Equity Tax Saver fund is 2.67%. Expense ratio is lower for direct investment in the fund. 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 enter?

Now! There is no good time to invest rather than now. Do not try to time the market and especially so if it is an SIP. Do not follow news channel and other experts to know the right time to invest. In the long run it does not matter. Mutual fund is unlike a stock where you are looking at the right price. This job will be done by the mutual fund scheme manager. If you have planned your investments and decided on the amount you want to invest do not think further, just go ahead.

When to exit?

There is a lock-in period of 3 years on this fund, which means that you cannot sell this fund within 3 years of your purchase date. 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.

Tax Implications

The returns in a mutual fund are absolutely tax free, provided you did not withdraw within 1 year. Canara Robeco Equity Tax Saver qualifies for sec 80C ELSS benefits, which means you can invest up to Rs 1 lakh a year in this fund and deduct the amount from your gross total income for computing income tax.

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