Canara Robeco Asset Management Company Limited has launched Canara Robeco Focused Equity Fund, an open-ended equity scheme, investing in a maximum of 30 stocks in large cap, mid cap, and small cap companies across diversified sectors.
The fund manager would identify businesses with sustainable, high growth opportunities, quality, and scalable earning potential.
Shridatta Bhandwaldar, Head – Equities and Fund Manager, Canara Robeco Mutual Fund said, “The investment approach to our Focussed Equity Fund would be three-pronged, one would be to identify leaders who have highest market share and industry-leading ROE/ROCE profile, second would be, to be able to identify challengers who have the possibility of superior earnings growth v/s Leaders due to market share gains and acceptable average ROE/ROCE of more than 15%, and third, identifying new themes, stocks and sectors which are witnessing cyclical tailwinds. Benefits of this approach of portfolio creation, would help achieve compounding over medium term, steadiness to portfolio, high downside protection and low volatility. Emerging themes and cyclical tailwind beneficiaries will benefit alpha generation due to meaningful earnings deviations.”
Canara Robeco Focused Equity Fund would have an active portfolio management, with both market cap and sector agnostic portfolio construct approach, with optimum weight allocation. The fund will have 60% exposure to large caps and the remaining portion will be invested in mid and small caps.
Shridatta Bhandwaldar would be managing Canara Robeco Focused Equity Fund. He is currently managing Canara Robeco Bluechip Equity Fund, Canara Robeco Flexicap Fund, and Canara Robeco Equity Hybrid Fund.
The minimum investment amount in the NFO will be Rs 5,000 and for SIP it will be Rs 1,000. The fund will be benchmarked against S&P BSE 500 TRI. The NFO opens on April 23, 2021 and closes on May 7, 2021.
