Investing in Canara Robeco Blue Chip Equity Fund Direct Growth is a great choice for investors interested in top-performing stocks in 2024.
This fund was established by Canara Robeco Mutual Funds in January 2013.
The fund is benchmarked against the S&P BSE 100 India TRI and holds the least risk and expense ratio among the categories.
Canara Robeco Blue Chip Equity Fund has completed 11 years from inception and currently holds an AUM of Rs. 11823.30 crore. The direct-growth plan has yielded 15.32% CAGR per year since its inception.
If you had invested 1 lakh in 2013, your fund would have grown up to 4.7 lakhs in 2024.
The minimum lump sum to start investments in this fund is Rs.5000 and the minimum SIP (systematic investment plan) is Rs. 100 per month.
Canara Robeco Blue Chip Equity fund comprises 4 plans,
- Direct Growth Plan (We speak about this plan in this article)
- Regular Growth
- Direct – IDCW (Dividend Plan)
- Regular – IDCW (Dividend Plan)
Here we are sharing the complete details of this bluechip fund that could make any investor make the right decision before investing.
Canara Robeco Bluechip Equity Fund Direct Growth NAV:
The current NAV of Canara Robeco Blue Chip Equity Fund direct growth is 58.98 (as of February 9, 2024).
The NAV of other plans of the same blue chip funds is
- Regular Growth – 51.92
- IDCW – Regular Plan – 26.52
- IDCW – Direct Plan – 47.54
During the NFO period, all 4 plans had a NAV of Rs. 10. By the above distinction, you could find the Direct-Growth plan helps grow your funds at higher rates than other plans.
Regular plans are best if you need a professional to manage your fund.
Canara Robeco Bluechip Equity Fund Direct Growth Performance:
Canara Robeco Mutual Funds is an open-ended scheme that invests in large-cap companies (Top 100 companies of Indian share market per market capital).
This fund’s objective was to outperform the benchmark (S&P BSE 100 TRI) with comparatively low risk.
The fund has performed at a CAGR of 15.32% per annum since inception vs. 12.83% to S&P BSE 100 (benchmark). The category average has performed at a CAGR of 15.66%.
Canara Robeco Blue Chip Equity Fund has underperformed its category average in the last 2 years of performance and outperformed its category average in the last 5 years of performance.
The fund has grown 46.98% higher than the Nifty 50 index since its inception (January 2013).
A short comparison of the fund’s performance with the benchmark and category average follows.
The fund has performed in 2 and 5 years returns with a CAGR of 7.87% and 14.75%, respectively.
In 2 years of performance, the Canara Robeco Blue Chip Equity Fund direct growth has performed 1.6% lower than the benchmark and 1.57% lower than the category average.
In the last 5 years of performance, the Canara Robeco Blue Chip Equity Fund direct growth has performed 1.88% higher than the benchmark and 1.99% higher than the category average.
The same fund has underperformed than benchmark and category for the last 1 year of performance.
Once again, the performance calibration proves that this fund should be invested if your goal is mid or long-term to outperform the category average or benchmark.
Fundamental Analysis Ratios:
P/B – 4.20
P/E – 26.30
Canara Robeco Bluechip Equity Fund Portfolio:
The portfolio of this scheme includes equity (96.4%) and cash (3.6%).
Equity Holdings (96.37% of total portfolio):
The fund holds 51 company stocks and is subdivided into three types of classes (as per market capital),
- Large Cap Companies – 73.21%
- Mid Cap Companies – 7.47%
- Small Cap Companies – 0.82%
- Others – 14.87%
Cash (3.63% of total portfolio):
- TREPS – 3.33%
- Not Receivables – 0.30%
Fund Portfolio across Industries:
- Financial – 29.5%
- Technology – 12.2%
- Energy – 9.8%
- Automobile – 8.1%
- Construction – 8.1%
- Consumer Staples – 7.1%
- Healthcare – 7.7%
- Others – 17.5%
Top 20 Holdings:
- HDFC Bank Ltd – 8.34%
- ICICI Bank Ltd – 7.16%
- Reliance Industries Ltd. – 6.75%
- Infosys Ltd. – 5.58%
- Larsen & Toubro Ltd. – 4.93%
- Bharti Airtel Ltd. – 4.12%
- Tata Consultancy Services Ltd. – 3.37%
- ITC Limited – 2.95%
- Axis Bank Ltd. – 2.88%
- Ultratech Cement Ltd. – 2.83%
- Bajaj Finance Ltd. – 2.79%
- National Thermal Power Corporation Ltd. – 2.70%
- State Bank Of India – 2.52%
- Sun Pharmaceutical Industries Ltd. – 2.51%
- Tata Motors Ltd. – 2.08%
- HCL Technologies Limited – 2.02%
- Mahindra & Mahindra Ltd. – 1.63%
- Bajaj Auto Ltd. – 1.61%
- Bharat Electronics Ltd. – 1.56%
- Kotak Mahindra Bank Ltd. – 1.54%
The Top 5 securities of this scheme cover 32.76% of the overall portfolio, and the Top 20 securities cover 69.87%.
Canara Robeco Bluechip Equity Fund Direct Growth Risk Ratios:
While investing in mutual funds, you should know the methods of analyzing the risk ratio of any fund.
Standard deviation, Alpha, Beta, and Sharpe ratio are the parameters we usually calculate to predict the volatility and risk on returns.
Here are the details of the 3-year risk factors of the fund vs. category average.
- Standard Deviation – 13.53 vs. 13.92
- Alpha – (-) 1.71 vs (-) 0.26
- Beta – 0.93 vs 0.94
- Sharpe Ratio – 0.69 vs 0.75
The fund has moderately low risk compared to the category average and benchmark.
It also provides better risk-adjusted returns compared to the category average.
Canara Robeco Bluechip Equity Fund Expense Ratio:
The expense ratio plays a crucial role and impacts the performance of any mutual fund scheme.
The expense ratio or TER of Canara Robeco Bluechip Equity Fund Direct Growth is 0.5%.
The TER of the category average is 1%. This is an important reason why the fund has outperformed both the category average and benchmarks in the long term (5+ years).
Here is the expense ratio detail of the same fund with different plans,
- Regular – Growth – 1.7%
- Regular – IDCW – 1.7%
- Direct – IDCW – 0.5%
So, the best plan to choose from this scheme is direct growth. The fund has zero exit loads when redeemed post 1 year and 1% if redeemed within 365 days.
Canara Robeco Bluechip Equity Fund Managers:
Every mutual fund investor must know about the fund manager and their history.
Two managers manage this fund. Shridatta Bhandwaldar and Vishal Mishra.
Shridatta Bhandwaldar has been managing this fund since July 2016. Before joining Canara Robeco Mutual Fund, he was associated with SBI Pension Funds Pvt. Ltd. as Head-Research, Heritage India Advisory Pvt. Ltd. as a Senior Equity Analyst, Motilal Oswal Securities, and MF Global Securities. Apart from this fund, he manages 14 more schemes at Canara Robeco AMC.
Vishal Mishra has been managing this fund since June 2021. Presently, he is associated with Canara Robeco Mutual Fund. Before joining Canara Robeco AMC, his previous assignments were with Daiwa Asset Mgt (India) Pvt. Ltd, Collins Stewart India Pvt. Ltd. as Asst. Vice President Research.
He was also been associated with IL&FS Investment Ltd, Crisil Ltd, and Quantum Information Services Ltd. Apart from this fund, he manages 7 more schemes at Canara Robeco AMC.
Conclusion:
- This fund is one of India’s top picks in large-cap mutual funds.
- Canara Robeco Bluechip Equity Fund is designed for investors with long-term goals like retirement planning, a dream home, a child’s higher education, and marriage.
- Portfolios are well diversified within 51 equity securities and a few cash components.
- Hold low-risk compared to the category average.
- This fund underperformed its category average in the last 2 years of performance and outperformed its category average in the last 5 years of performance.
- The expense ratio of this fund is lower than the category average.
- The fund manager’s track record is awesome.