Canara Robeco Mutual Fund, India’s second oldest mutual fund, on Friday (February 16) announced the launch of Canara Robeco Manufacturing Fund. The new fund offer (NFO) is an open-ended equity scheme that represents India’s manufacturing theme and will be benchmarked against the S&P BSE India Manufacturing TRI.
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The NFO offers a medium to provide a dedicated allocation to the manufacturing sector. The NFO will remain open until March 1, 2024, Canara Robeco Mutual Fund said.
The Canara Robeco Manufacturing Fund enters the market at a moment when there is a rising middle class and rising working-age population in India.
Rajnish Narula, CEO of Canara Robeco Mutual Fund, emphasised the fund's suitability for established investors, citing robust domestic demand, favourable policy reforms, a strong corporate balance sheet, and a stable political environment.
Narula highlighted India's potential as an attractive investment destination and pointed to policy reforms such as Atmanirbhar Bharat, PLI, Make in India, Single Window Clearance, and import substitution as key drivers for the fund's success.
Shridatta Bhandwaldar, Head of Equities at Canara Robeco, outlined the macro factors supporting India's manufacturing scale-up.
"These factors include a large and growing domestic market, supportive government policies, fiscal backing for capital expenditures, and a global supply chain reconfiguration that enables Indian manufacturers to participate in the export value chain," he said.
The fund adopts a growth strategy to capitalise on manufacturing trends and opportunities across relevant sectors.
Investors with a high-risk appetite, comfortable with volatility, and a long-term investment horizon of five years and above are deemed suitable for this fund, provided they have lower near-term liquidity needs, the fund house said.
The Canara Robeco Manufacturing Fund mandates a minimum investment of ₹5,000 and subsequent multiples of ₹1.
The fund allocation includes a minimum of 80% in manufacturing and allied stocks, 0-20% in equity and equity-related instruments unrelated to the manufacturing theme, 0-20% in debt and debt market instruments, and 0-10% in units issued by REITs and InvITs.
Managed by Pranav Gokhale, Senior Fund Manager, and Shridatta Bhandwaldar, Head of Equities at Canara Robeco AMC, the fund is well-positioned to tap into India's manufacturing growth story.
A look at returns of some of the peer funds
| Fund Name | 1-month return (%) |
|---|---|
| Axis India Manufacturing Fund - Regular Plan | 5.39% |
| ICICI Prudential India Opportunities Fund | 1.96% |
| ICICI Prudential Business Cycle Fund | 5.06% |
| ICICI Prudential Innovation Fund | 3.66% |
(Source: Value Research)
About Canara Robecco Mutual Fund
Canara Robeco Mutual Fund is the second oldest Mutual Fund in India, established in December 1987 as Canbank Mutual Fund. Subsequently, in 2007, Canara Bank partnered with Robeco (now a part of ORIX Corporation, Japan) and the mutual fund was renamed as Canara Robeco Mutual Fund.
As of January 31, 2024, Canara Robeco Mutual Fund has an asset under management (AUM) of ₹85,988 crore.
(Edited by : Amrita)
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