Canara Robeco Equity Diversified is an open ended scheme with an investment objective to generate capital by investing in equity and equity related securities. Ranked 2 by Crisil this fund is a must have in the portfolio of the investors who seeks exposure in the Large cap segment.
Nature: Equity Diversified
Inception: September 2003
Assets under Management: Rs 543 crore at the end of March 2012
Fund Manager: Soumendra Nath Lahiri
This fund invests in a portfolio comprising primarily of large caps along with some mid caps using the growth and value style of investing. At the end of May 2010, the fund had 25 per cent of its assets in the banking sector followed by 10 per cent in Pharma and 8 per cent in petroleum products. What was significant was that the portion of the portfolio in money market instruments was around 9 per cent. In terms of individual stocks, Reliance industries was the top holding with an exposure of more than 6 per cent. No other stock had an exposure in excess of 5 per cent. Some of the other top holdings included HDFC Bank, GAIL, BHEL, TCS and Sun TV network. The portfolio turnover ratio was a miniscule 0.12 times which showed that the fund was following a buy and hold strategy. The fund was also outperforming the benchmark the BSE 200 over the one, three, and five years time period. Six months later, the fund had around 11 per cent of the portfolio in money market instruments. Banks remained the top sector but the exposure was now down to 13 per cent and this was followed by consumer non durables, Pharma, and software where the exposure was 9 per cent in each of the areas. There was a significant rise in the portfolio turnover ratio as this went up to 1 times. HDFC Bank was the top holding in the fund with a 5.7 per cent exposure followed by Bharti Airtel, TCS, Reliance Industries, GAIL, and BHEL. The fund was outperforming the benchmark over the one, three and five year time period. The situation did not change much at the end of May 2011 as money market instruments were just under 10 per cent of the portfolio. Banking remained the top sector with an exposure of 14 per cent followed by Pharma and consumer non-durables each of which had an exposure of around 9 per cent. HDFC bank was the top holding followed by Bharti Airtel, Reliance Industries, Infosys, ICICI bank, and BHEL. The fund turnover ratio had fallen slightly to around 0.7 times and it was outperforming the benchmark over the one, three and five year time periods. At the end of November 2011 the exposure to money market instruments still remained high at over 11 per cent of the portfolio. In terms of the sector exposure, banks were still at the top with a figure of over 15 per cent followed by consumer non durables, Pharma, and software. HDFC Bank was the top holding followed by Reliance Industries where both these stocks had asimilar amount of exposure. Some of the other stocks with a high exposure included Infosys, Bharti, TCS, ITC, and HUL. The portfolio turnover of the fund had come down to 0.5 times. The fund was still outperforming its benchmark over the one and three year time period. The exposure to money market instruments had come down to 7 per cent at the end of May 2012. Banks remained the top sector with an exposure of 21 per cent followed by consumer non durables and software both with an exposure of 10 per cent. Infosys was now the top individual holding with a figure of just over 6 per cent followed by HDFC Bank, ICICI bank, ITC, SBI and Reliance Industries. The fund is an outperformer over the one, three year time periods and also since inception. This fund is suitable for investors who want an exposure to the broader market but with predominance towards large caps. The fund has consistently outperformed its benchmarks and hence can be considered as a part of the core portfolio of an investor.