Canara Robeco Mutual Fund was established in 1987. It was formed when Canbank Mutual Fund sold 49% of its stake to Robeco Groep N.V. (formerly known as Robeco Groep N.V.). Canara Robeco follows a disciplined investment approach. It focuses on long-term wealth creation for investors. Now, let’s see if investing in Canara Robeco is a wise investment decision.
Should You Invest in Canara Robeco Mutual Fund?
Here we will cover different aspects of investing in mutual funds offered by this AMC.
- Market-Linked Nature
Mutual fund performance is directly tied to the underlying securities performance. When the overall market experiences volatility, the value of mutual fund units can fluctuate.
Unfortunately, you cannot accurately predict the future. Global events, economic conditions, and investors’ sentiments influence market movements.
Still, if you look at last year’s returns for some of the Canara Robeco schemes, you will be impressed.
●Canara Robeco Equity Tax Saver Direct-Growth (11.6%)
●Canara Robeco Bluechip Equity Fund Direct-Growth (31.6%)
●Canara Robeco Infrastructure Direct-Growth (59.0%)
- SEBI Regulation
SEBI ensures that Canara Robeco adheres to all regulatory guidelines. This includes rules related to fund management, disclosures, and investor protection. Before launching any new mutual fund scheme, Canara Robeco must seek SEBI’s approval. SEBI evaluates the scheme’s structure, risk factors, and regulation compliance.
Also, SEBI regularly scrutinizes fund portfolios, investment decisions, and compliance with investment restrictions. All these parameters make Canara Robeco Mutual Funds a safe investment pick.
- Experience and Reputation
Canara Robeco Mutual Fund has over thirty years of fund management experience. This extensive experience has allowed AMC to deal with various market cycles and develop a deep knowledge of various investment environments.
The company has a current investor base of 47.07 lakh investors across different categories. This shows the trust of investors in the company.
In addition, Canara Robeco manages around Rs 88,764.41 crores (as of March 31, 2024) in assets under management, which indicates its ability to manage a range of investment portfolios.
- Investment Solutions
Your risk profile and investment objectives will determine your best investment plan. For example, if you want consistent returns with low risk, you can invest in the Canara Robeco Dynamic Bond Fund. This scheme’s last five-year return is 5.10%.
For a more balanced strategy, consider the Canara Robeco Equity Hybrid Fund. This scheme tracks the CRISIL Hybrid 35+65 Aggressive Index, and its return for the last year was 37.09%.
- Tax-Saving Funds
Canara Robeco’s direct mutual funds also help investors by allowing them to save tax. For example, if you invest in their ELSS, your contribution will qualify for a section 80C tax deduction. However, keep in mind that this scheme has a three-year lock-in period.
The key holdings of this scheme are:
●Infosys Ltd.
●NTPC Ltd.
●Tata Consultancy Services Ltd
●HDFC Bank Ltd
●Reliance Industries Ltd
Conclusion
Canara Robeco Mutual Fund offers diverse investment solutions. Whether you are planning for wealth creation, retirement, or your child’s education, Canara Robeco has options tailored to your needs. However, before investing, you should analyze the fund’s historical performance, the fund manager’s experience, and different ratios. To invest in mutual funds online, open an account with Dhan.
