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This Equity Mutual Fund Has Been Rated “Best” From 3 Institutions

Sunil Fernandes
·3-min read

Canara Robeco Bluechip Equity Fund has a 5-star rating from three of the leading agencies/websites, who monitor and track equity mutual funds closely in India. The equity mutual fund has a "5 star" rating from Crisil, Value Research and Morning Star- all of which are considered very credible when it comes to mutual funds in India.

Superb returns from Canara Robeco Bluechip Equity Fund

The returns from the fund has been better than almost all of its peers. The 1-year returns has been 8.31 per cent, the 5-year returns are at 9.91 per cent on an annualized basis and the 7 year returns are almost at 13 per cent on an annualized basis. Compared to large equity mutual funds which have assets under management of nearly Rs 15,000 to Rs 20,000 crores, Canara Robeco Bluechip Equity Fund has a far smaller size of just about Rs 700 crores. However, performance wise it has been much better.

The net asset value under the growth plan is Rs 27.04, while under the dividend plan it is around the Rs 16 level.

Solid portfolio

Returns are largely a function of the portfolio and here is where Canara Robeco Bluechip Equity Fund scores. The portfolio includes names like Reliance Industries, HDFC Bank, Infosys, ICICI Bank, TCS, HDFC and Hindustan Unilever. Some of the stocks like Reliance Industries and Infosys have move up significantly, which is one of the reasons why Canara Robeco Bluechip Fund has performed well.

The portfolio is clearly geared to price higher returns in the short to medium term for investors. Currently, as much as 96 per cent of the funds of Canara Robeco Bluechip Equity Fund is invested and the balance is in cash and cash equivalents. This is a largecap fund and hence the money is invested only in largecap stocks.

Investment through SIP

One can invest in the Canara Robeco Bluechip Equity Fund through the SIP route. The minimum SIP amount is Rs 1,000 and in multiples thereof. Investing through the SIP route will help investors avoid the pitfalls of a highly volatile market.

Given the wild swings in the markets over the entire year, thanks in part to Covid 19 infections, it's best to stay invested through the SIP route.

A Rs 10,000 monthly SIP in Canara Robeco Bluechip Equity Fund would have now grown to Rs 4.07 lakhs in the last 1 year. This is a pretty decent returns. In any case, Canara Robeco Bluechip Equity Fund is a good bet for long term investors.

In fact, as can be seen from the returns, a holding period of 5 to 7 years has always generated superior returns. So, stay invested for the long term unless you need to encash.

About the author

Sunil Fernandes has spent 26 years covering business and finance in India and abroad. Sunil has worked with frontline daily newspapers including Hindustan Times, Deccan Herald and Gulf Times. He has also worked with investment magazines like Dalal Street Investment Journal and Oman Economic Review. His forte remains stocks, mutual funds, commodities, debt and tax planning.

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