What are Equity large and mid-cap funds?
Mutual funds that invest in India’s top 200 firms are large- and mid-cap funds. These funds bring together India’s largest corporations and mid-sized enterprises fighting for the top spot. According to SEBI Guidelines, these funds should invest at least 35% of the total assets in large-cap funds and a minimum of 35% in mid-cap funds.
It’s best for those with a 5-year or longer investment horizon. Large- and mid-cap funds are the ideal blend of the stability of the large-cap funds and the aggressiveness of mid-cap funds. The risk associated with these funds is much lesser than investing in pure mid-cap funds.
Canara Robeco Fund
Canbank Mutual Fund and Robeco NV, an asset management business located in the Netherlands, have merged to form Canara Robeco Mutual Fund. It was incorporated in 1993. As of March 2022, their assets under management (AUM) are worth Rs. 49867 crores. They currently offer 22 equity, 41 debt, and eight hybrid funds.
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Canara Robeco Emerging Equities Fund Direct-Growth
Canara Robeco Emerging Equities Fund Direct-Growth is a Canara Robeco Mutual Fund Principal Large Cap fund scheme. This fund was created on January 1, 2013. Canara Robeco Emerging Equities Fund Direct-Growth is a medium-sized fund in its category, with assets under management (AUM) of 12,994 crores as of March 31, 2022. The fund’s cost ratio is 0.61%.
Infosys Ltd., ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., and Bajaj Finance Ltd. are the fund’s top five holdings.
Who should invest in Canara Robeco Emerging Equities Fund Direct-Growth?
Principal Large cap funds deliver long-term inflation-beating performance. They are appropriate for investment objectives with a time horizon of 10-15 years or more. One should stay invested at least for five years to reap the benefits. These funds are risky if the money is invested for a short period as the prices are flammable. However, the risk factor reduces substantially if the money is invested for an extended period.
If redeemed within a year, the funds will be subject to a 1% Exit Load. This fund requires a minimum lump-sum investment of Rs 5000, with a minimum additional investment of Rs 1000. SIP investments start at Rs 1000.
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Performance of the fund
Canara Robeco Emerging Equities Fund Direct-Growth returns has been 21.64% over the last year. Since the funds ‘ inception, the average return has been 21.63% every year.
Every two years, the money invested in the funds is multiplied by 4 times. On April 27, 2022, the NAV of the fund was Rs. 172.72.
CRISIL has classified this fund as number one on a scale of one to five, indicating “very good performance.”
| Returns (Time period) | Canara Robeco Emerging Equities – Direct Plan – Growth Option | Equity: Large and Mid Cap | NIFTY LARGE MIDCAP 250 TRI |
| CAGR since inception | 21.62 % | 16.43 % | 15.7 % |
| 1 Year | 21.64 % | 20.79 % | 21.72 % |
| 3 Year | 19.74 % | 16.99 % | 18.52 % |
| 5 Year | 14.66 % | 12.4 % | 14.31 % |
| 10 Year | 0.0 % | 15.79 % | 16.79 % |
| Nav / Index Value as on 27-04-2022 | 172.72 | NA | NA |
Where are the funds invested?
| Infosys Ltd | Software | 5.96% |
| ICICI Bank Ltd | Banks | 5.49% |
| HDFC Bank Ltd | Banks | 4.83% |
| Reliance Industries Ltd | Petroleum Products | 3.85% |
| Bajaj Finance Ltd | Finance | 3.45% |
| State Bank of India | Banks | 3.21% |
| Axis Bank Ltd | Banks | 2.90% |
| Tata Consultancy Services Ltd | Software | 2.51% |
| Mphasis Ltd | Software | 2.42% |
| Voltas Ltd | Consumer Durables | 2.27% |
| Larsen & Toubro Ltd | Construction Project | 2.22% |
| Minda Industries Ltd | Auto Ancillaries | 2.20% |
| Max Healthcare Institute Ltd | Healthcare Services | 2.19% |
| Cholamandalam Investment and Finance Co Ltd | Finance | 2.02% |
| Bharti Airtel Ltd | Telecom – Services | 2.00% |
| Atul Ltd | Chemicals | 1.79% |
| Sun Pharmaceutical Industries Ltd | Pharmaceuticals | 1.72% |
| Polycab India Ltd | Industrial Products | 1.69% |
| Aditya Birla Fashion and Retail Ltd | Retailing | 1.69% |
| Bharat Electronics Ltd | Aerospace | 1.61% |
Peer comparison
| Equity, Large & MidCap funds | 1 Y | 3 Y | Fund Size (In crores) |
| Canara Robeco Emerging Equities Fund Direct-Growth | 21.6% | 19.7% | 12,994.20 |
| Axis Growth Opportunities Fund Direct Growth | 24.0% | 24.7% | 7,249.62 |
| Mirae Asset Emerging Bluechip Fund Direct Growth | 19.5% | 22.1% | 21,932.38 |
| Sundaram Large and Mid Cap Fund Direct Growth | 22.2% | 18.8% | 5,016.53 |
| Baroda BNP Paribas Large and Mid cap fund direct growth | 24.3% | NA | 622.44 |
| Edelweiss Large & Mid Cap Direct Plan-Growth | 19.46% | 19.77% | 1,270 |
| Quant Large And Mid Cap Fund Direct-Growth | 31.75% | 25.33% | 79 |
| Kotak Equity Opportunities Fund Direct-Growth | 18.7% | 18.59% | 9,455 |
| SBI Large & Midcap Fund Direct Plan-Growth | 26.68% | 19.03% | 6,384 |
REFERENCES:
https://www.moneycontrol.com/mutual-funds/nav/canara-robeco-emerging-equities/MCA033
https://kuvera.in/explore/mf/l/canara-robeco-emerging-equities-growth–CAEQDG-GR