NFO alert: Details of the Canara Robeco Manufacturing Fund, know more here!

We provide information on the new NFOs, their goals, fund allocation, fund managers, and peer performance in the article that follows.

On February 16, 2024, Canara Robeco Mutual Fund introduced a new open-ended equity mutual fund scheme called the Canara Robeco Manufacturing Fund. Its primary investment strategy is in equities and equity-related securities of manufacturing businesses with the goal of producing long-term capital appreciation. There is no entrance load and a minimum investment of Rs 5,000. If you redeem or replace your investment within 365 days of the date of allocation, there is an exit load of 1 per cent.

The scheme aims to generate long-term capital appreciation by investing predominantly in equities and equity-related instruments of companies engaged in the manufacturing theme.

Benchmark - S&P BSE India Manufacturing TRI

Risk-o-meter – Scheme: High Risk, Benchmark: High Risk

Funds Allocation

Fund Managers

Pranav Gokhale, 45 Years, Masters in Commerce (Mumbai University) Chartered Accountant (ICAI) and Over 21 years of Experience.

Shridatta Bhandwaldar, 43 years, B.E (Mechanical), M.M.S (Finance) and Over 16 years of Experience.

Management Commentary

"The Canara Robeco Manufacturing Fund enters the market at a pivotal moment when there is a rising middle class and rising working-age population in India. This fund will be suitable for established investors because of the thriving domestic demand, favourable policy reforms, robust and deleveraged corporate balance sheet and a stable political environment. India seems to be well-positioned to become an attractive investment destination. This fund will seek to benefit from policy reforms like Atmanirbhar Bharat, PLI, Make in India, Single Window Clearance and import substitution," said Rajnish Narula, CEO, of Canara Robeco Mutual Fund.

“India is witnessing the confluence of factors which are conducive for the manufacturing scale-up. Factors such as a large and growing domestic market, favourable government policies, fiscal support for capex, de-leveraged corporate balance sheets and global supply chain rejig which is allowing Indian manufacturers to participate in the export value chain. Import substitution and export ecosystem are likely the outcome of these macro factors.

With this fund, we are providing the investors with the opportunity to become a part of India’s manufacturing growth story. The fund will adopt a growth strategy aiming to capitalize on manufacturing trends and opportunities, investing across relevant sectors, representing the manufacturing theme,” said Shridatta Bhandwaldar, Head Equities, Canara Robeco.

This fund is suitable for investors comfortable with volatility and expecting a better risk-return tradeoff, with a high-risk appetite and a long-term investment horizon of 5 years and above, having lower near-term liquidity needs. The fund will invest a minimum of 80 per cent into manufacturing and allied stocks, 0-20 per cent in equity and equity-related Instruments of companies other than engaged in manufacturing theme, 0-20 per cent in debt and debt market instruments and 0-10 Rs in units issued by REITs and InvITs. The minimum investment in the fund is Rs 5,000 and in multiplies of Rs 1 thereafter.

Peer Manufacturing Funds

All Values are in per cent

Disclaimer: The article is for informational purposes only and not investment advice.