Canara Robeco Value Fund: Turning a ₹10,000 Monthly SIP into ₹5.62 Lakh in Three Years

The Canara Robeco Value Fund, an open-ended equity scheme from Canara Robeco Mutual Fund, has recently celebrated its third anniversary with impressive performance metrics. Investors who committed to a monthly Systematic Investment Plan (SIP) of ₹10,000 since the fund's inception would have invested a total of ₹3.6 lakh over three years. Remarkably, this investment has grown to ₹5.62 lakh, reflecting an annualized return (XIRR) of 31.23% as of August 30, according to a press release from the fund house.

This impressive return is significantly higher than the benchmark BSE 500 TRI's XIRR of 27.08%, demonstrating the fund's ability to consistently outperform its benchmark. Since its inception, the Canara Robeco Value Fund has delivered a return of 23.62%, and over the past year alone, it has posted a return of 42.88%. In comparison, the BSE 500 TRI's returns during the same periods were 18.42% and 41.14%, respectively.

The fund's strong performance can be attributed to its value investing strategy, which focuses on identifying and investing in fundamentally strong stocks trading below their intrinsic value. With over 95% of its portfolio allocated to equities, and more than 60% invested in large-cap stocks, the fund's strategy emphasizes a 'Margin of Safety.' This approach aims to generate alpha for investors through careful stock selection, ensuring that the fund remains resilient even during market volatility.

The Canara Robeco Value Fund is managed by Vishal Mishra, with Silky Jain serving as the Assistant Fund Manager. The management team employs a blend of bottom-up and top-down strategies, which allows them to invest across market capitalizations effectively. This diversified approach enables the fund to capitalize on opportunities across the market spectrum, enhancing its potential for delivering superior returns.

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For investors considering whether to invest in the Canara Robeco Value Fund, it's important to note that while the fund's past performance is encouraging, it does not guarantee future results. The market remains unpredictable, and investors should proceed with caution. However, for those with a long-term investment horizon and a higher tolerance for risk, this fund may be a suitable option. Its focus on value investing could appeal to those seeking risk-adjusted returns, making it an attractive choice for long-term wealth creation.

Source: CNBC-TV18