Getty ImagesIncreasing talks over attractive valuation of mid-sized companies and extremely stable performance of large-sized companies provide a strong basis for investments in schemes which invest in both.
Presently, the Nifty mid cap 100 is trading at 25 per cent discount to its three-year average price to earnings multiple while the Nifty 50 is trading at a premium of 8 per cent to its three-year average price to earnings multiple. Given these factors, a portfolio which offers a combination of large sized companies that would add stability and mid-sized companies which would provide alpha and add incremental returns to the portfolio makes sense in the present market conditions.
Among such schemes, Canara Robeco Emerging Equities Fund fits the bill. The scheme has long performance record which covers close to 15 years. In almost all cycles it has beaten its peers and the benchmark index by a reasonably good margin.
In the past three-year, five-year and ten-year periods, the scheme has given returns of 9 per cent, 15 per cent and 19.4 per cent returns, respectively, while its peers have given average return of 6 per cent, 10 per cent and 12 per cent, respectively, over the same periods.
In the past six months, the scheme’s fund managers Krishna Sanghvi and Nitish Gandhi have constructed a portfolio which has companies which are both value and growth buys. Besides, these companies offer stability in current phase of volatile markets. A few prominent companies are ITC, PoweGrid and ICICI Prudential Life.
Investors can consider the scheme with a horizon of at least five years.
Portfolio Change (past 6 months)
Returns (in %)
Returns Peer Comparison (in %)
Source: Accord Fintech, Complied by ETIG Database
Expert Take
Vishal Dhawan, CFP, Plan Ahead Wealth Advisors
Canara Robeco Emerging Equities Fund has built an excellent long-term track record over the years. It has a highly diversified portfolio of 60 plus stocks, but due to its high beta resulting in volatility over shorter time periods, it is ideally suited for investors with aggressive risk tolerance and are willing to invest with a 7-10 year view through SIPs or STPs.
Presently, the Nifty mid cap 100 is trading at 25 per cent discount to its three-year average price to earnings multiple while the Nifty 50 is trading at a premium of 8 per cent to its three-year average price to earnings multiple. Given these factors, a portfolio which offers a combination of large sized companies that would add stability and mid-sized companies which would provide alpha and add incremental returns to the portfolio makes sense in the present market conditions.
Among such schemes, Canara Robeco Emerging Equities Fund fits the bill. The scheme has long performance record which covers close to 15 years. In almost all cycles it has beaten its peers and the benchmark index by a reasonably good margin.
In the past three-year, five-year and ten-year periods, the scheme has given returns of 9 per cent, 15 per cent and 19.4 per cent returns, respectively, while its peers have given average return of 6 per cent, 10 per cent and 12 per cent, respectively, over the same periods.
In the past six months, the scheme’s fund managers Krishna Sanghvi and Nitish Gandhi have constructed a portfolio which has companies which are both value and growth buys. Besides, these companies offer stability in current phase of volatile markets. A few prominent companies are ITC, PoweGrid and ICICI Prudential Life.
Investors can consider the scheme with a horizon of at least five years.
Portfolio Change (past 6 months)
| New Entrants | Complete Exits | Increase in Allocation |
| Bank of Baroda | Arvind | Century Textiles & Inds |
| Bharat Electronics | RBL Bank | Aditya Birla Fashion & Retail |
| Gujarat Gas | GAIL (India) | Voltas |
Returns (in %)
| Period | CAGR Return | SIP CAGR Return | Large & Mid Cap - AVG Annualised return (%) |
| 1 Year | -10.23 | -8.19 | -7.24 |
| 3 Year | 9.15 | 1.49 | 6.73 |
| 5 Year | 15.24 | 8.49 | 10.56 |
Returns Peer Comparison (in %)
| Scheme Name | 1 Year | 3 Year | 5 Year |
| Invesco India Growth Opportunities Fund | -5.19 | 9.61 | 11.81 |
| Kotak Equity Opportunities Fund | -3.98 | 7.80 | 11.94 |
| Principal Emerging Bluechip Fund | -13.23 | 7.06 | 13.74 |
Expert Take
Vishal Dhawan, CFP, Plan Ahead Wealth Advisors
Canara Robeco Emerging Equities Fund has built an excellent long-term track record over the years. It has a highly diversified portfolio of 60 plus stocks, but due to its high beta resulting in volatility over shorter time periods, it is ideally suited for investors with aggressive risk tolerance and are willing to invest with a 7-10 year view through SIPs or STPs.
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