A review of Canara Robeco Bluechip Equity Fund

Amid the current volatility in the equity market and surging valuations in mid- and small-cap segments, there is a notable demand for large-cap funds. After experiencing continuous outflow and low inflow over the past year, large-cap funds witnessed an inflow of Rs 1,287.95 crore in January 2024, the highest in the last 12 months, followed by another inflow of Rs 921 crore in February, according to data from the Association of Mutual Funds in India (Amfi).

The reason for this surge in inflow is that large-cap stocks are considered safe during volatile market conditions.

Canara Robeco Bluechip Equity Fund is one such large-cap fund that could be a decent choice for investors, given its track record.

Portfolio

The fund holds 40-45 stocks in its portfolio, which seems right in terms of its fund size. As far as its investment strategy goes, it follows a focused strategy and invests in blue-chip companies and sectors that are expected to perform better than the general market. The fund also uses a proprietary quant model to identify winning stocks for its portfolio.

Performance

It has a long track record of superior performance and proven ability to protect against the downside better than its peers in times of volatilty. In fact, it is among the few equity mutual funds that has consistently outperformed the respective benchmarks on a yearly basis in the last five years. However, it took a beating recently because of its high exposure in HDFC Bank. The fund has consistently maintained above 9 per cent exposure in this scrip in the last one year, and the stock has corrected nearly 15 per cent in the last three months.

OLM Take

The fund manager’s ability to astutely pick stocks in line with its portfolio strategy has been the key to its strong performance over the years.

It has delivered steady returns since its inception, which also makes it suitable for an investor’s core portfolio. Also, focused exposure to large-cap stocks makes it a decent choice for investors in all market conditions.

kundan@outlookindia.com