Canara Robeco Emerging Equities Fund: How A Rs 10,000 SIP Grew To Rs 1.9 Crore In 20 Years

Investors in Canara Robeco Emerging Equities Fund have seen significant returns over the past two decades. A Rs 10,000 monthly SIP in the fund since March 11, 2005, has grown to Rs 1.90 crore.

The Canara Robeco Emerging Equities Fund is a large and mid-cap fund that focuses on delivering capital appreciation through a diversified portfolio. It invests in companies ranked in the top 100 by market capitalisation (large cap) and those between 101 and 250 (mid cap).

Large-cap stocks usually offer stability and steady returns, while mid-cap stocks, being in an expansion phase, have substantial growth potential.

The fund follows the “Growth at a Reasonable Price” (GARP) investment philosophy, which blends growth and value investing. This approach ensures a balanced strategy that captures growth opportunities while managing risk.

The scheme is meant for investors with a high-risk appetite and a long-term investment horizon of at least three to five years.

As of January, the fund’s Assets Under Management (AUM) stood at Rs 23,339 crore. It has delivered good returns over time, with a five-year compound annual growth rate (CAGR) of 19.05%, a 10-year CAGR of 16.47%, and a 20-year CAGR of 18.01%.

Canara Robeco Emerging Equities Fund is benchmarked against the Nifty Large Midcap 250 TRI index and has consistently outperformed it across multiple time frames.

Shridatta Bhandwaldar, head of equities, and Amit Nadekar, fund manager, manage the Canara Robeco Emerging Equities Fund. Their strategy includes a diversified portfolio across sectors such as banking, retail, leisure services, automobiles and defence.

The fund’s holdings are spread across 98 stocks, with the top 10 stocks accounting for nearly 40% of its net assets.

As of January 2025, some of the fund's major investments are:

• ICICI Bank Ltd. (banks): 7.07% of net assets

• Indian Hotels Co. Ltd. (leisure services): 5.13% of net assets

• Bharat Electronics Ltd. (aerospace and defence): 4.04% of net assets

• Trent Ltd. (retail): 4% of net assets

• Uno Minda Ltd. (auto components): 3.90% of net assets

 Sector-wise, the fund’s allocation includes:

• Banks: 12.42%

• Automobiles: 7.52%

• Retail: 7.15%

• Leisure services: 7.02%

• Auto components: 6.99%

• Other equity: 57.20%

The fund maintains a mix of large and mid-cap investments, with 47% of the portfolio allocated to large-cap companies and 35% to mid-cap companies. This combination ensures stability from established businesses while providing exposure to emerging high-growth opportunities.

Canara Robeco Emerging Equities Fund has delivered strong and consistent performance since its inception. As of January 31, 2025, its returns stand at:

• 1-Year Return: 17.79% (regular plan), 19.01% (direct plan)

• 3-Year Return: 13.54% (regular plan), 14.80% (direct plan)

• 5-Year Return: 18.62% (regular plan), 19.97% (direct plan)

• Since Inception: 17.25% (regular plan), 20.70% (direct plan)

The Canara Robeco Emerging Equities Fund is an open-ended equity scheme, making it accessible for a broad range of investors. The minimum amount that you need to invest is Rs 5,000. If you want to start a SIP, you can begin with just Rs 1,000 per month.