Amid the period when the BSE Sensex touched 60,000 and the Nifty50, went near 17,000 we would first want to advise our readers to adhere to their Systematic Investment Plan (SIP) to prevent short-term market swings. Investing for the long term, irrespective of market breakdowns is a smart strategy since equities inevitably perform well in the long run. While we're on the subject of equity funds, asset allocation is done entirely in stocks of small-cap, mid-cap, or large-cap companies resulting in a well-diversified portfolio, depending on market dynamics.
Investing for short-term in an equity fund is not preferred, and by keeping the risk in mind which is much higher than the fixed income categories, investing for long-term in an equity fund with a high-risk appetite always works irrespective of the market's ups and downs. For an investment horizon of at least 5 years and to get higher-risk adjusted returns across well-diversified funds, here we have selected two Canara Robeco Equity Mutual Funds based on the rating 1 or 5 star given by CRISIL as of 30th June 2021.
Canara Robeco Equity Tax Saver Direct Growth
This ELSS mutual fund scheme was launched by the fund house Canara Robeco Mutual Fund in the year 2013 and has been in existence for 8 years. According to Value Research, Canara Robeco Equity Tax Saver Direct-Growth gains over the last year have been 71.15 percent, with an average annual return of 17.67 percent since inception.
The fund's expense ratio is 0.81 percent, which is lower than the expense ratio charged by most other funds in the ELSS fund category. The fund has a major equity allocation across Financial, Technology, Construction, Healthcare, Automobile sectors and the fund's top-performing holdings are Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Larsen & Toubro Ltd., Tata Consultancy Services Ltd..
In terms of delivering consistent returns investing in Canara Robeco Equity Tax Saver fund can be a decent bet as it has been rated 1 or 5 star by CRISIL, 5 star by Value Research and again 5 star by Morningstar. As of 24th September 2021, the Net Asset Value (NAV) of the fund is Rs 116.85 and the Asset Under Management (AUM) of the fund is Rs 2,679.66 Cr.
The fund comes with a lock-in period of 3 years and definitely no exit load. Investments in this fund up to Rs 1.5 lakh under section 80C would be tax-free and capital gains above Rs. 1 lakh will be subject to LTCG (long-term capital gains) tax at a rate of 10%. One can start SIP in this high-rated equity fund with a minimum monthly contribution of Rs 500.
Canara Robeco Bluechip Equity Fund Direct Growth
This Large Cap mutual fund scheme has been actively performing for the last 8 years having been launched in the year 2013 by the same fund house. Canara Robeco Bluechip Equity Fund Direct-Growth Returns in the previous year were 64.72 percent, according to Value Research, and it has generated 16.75 percent average annual returns since its inception.
The fund's expense ratio is 0.36 percent, which is comparable to the expense ratio charged by most other funds in the large-cap fund category. The fund has its equity allocation across Financial, Technology, Energy, Construction, Healthcare sectors. The fund's top-performing holdings are HDFC Bank Ltd., ICICI Bank Ltd., Infosys Ltd., Reliance Industries Ltd., Housing Development Finance Corpn. Ltd..
Canara Robeco Bluechip Equity fund has been granted a 1 or 5 star rating by CRISIL, 5-star by Value Research and again 5 star by Morningstar which simply indicates its historical performance in the same category i.e. large-cap. The fund's Net Asset Value (NAV) is Rs 42.58 as of September 24, 2021 and its Asset Under Management (AUM) is Rs 4,271.67 Cr.
The fund charges an exit load of 1% if units purchased are redeemed within 1 year of the investment date. If you withdraw your allocated units within 1 year of investment then a 15% of Short-term capital gains tax will be applied, whereas you are required to pay a Long-term capital gains tax of 10% on the sale of your allocated equity shares of more than Rs 1 lakh. You can start SIP in this fund with a minimum amount of Rs 1000.
Best Performing Canara Robeco Mutual Funds
Apart from the factors discussed above, here are the past returns of 2 high-rated Canara Robeco Equity Mutual Funds that you need to consider before initiating SIP in 2021.
|Funds||1 mth returns||6 mth returns||1 Yr returns||3 Yr returns||5 Yr returns|
|Canara Robeco Equity Tax Saver Direct Growth||6.54%||26.63%||71.15%||25.22%||19.88%|
|Canara Robeco Bluechip Equity Fund Direct Growth||6.65%||23.76%||64.72%||23.83%||18.68%|
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