Latest news with #CanaraRobecoMultiAssetAllocationFund
Economic Times
14-05-2025
- Business
- Economic Times
NFO Insight: Can this multi asset allocation fund save your portfolio in this volatile market?
ET Online Experts suggest multi-asset funds offer diversification and cushion against market volatility, though some advise caution due to lack of control over asset allocation. Canara Robeco Mutual Fund's latest new fund offer of Canara Robeco Multi Asset Allocation Fund is open for subscription and will close on May 23. The fund is an open-ended scheme investing in equity and equity related instruments, debt and money market instruments, Gold ETFs, and Silver scheme will open for continuous sale and repurchase on June 6. Canara Robeco Multi Asset Allocation Fund will follow an active investment strategy and aims to generate long-term capital appreciation through predominantly investing in a mix of Equity & Equity related Instruments, Debt & Money Market Instruments, Gold ETFs, Silver ETFs, units of REITs and InvITs and such other asset classes as SEBI may prescribe from time to time. "The launch of Canara Robeco Multi Asset Allocation Fund not just expands our product offerings, it also enhances our ability to provide investors with diversified solutions tailored to meet the evolving needs of the market,' said Rajnish Narula, Chief Executive Officer, Canara Robeco Asset Management Company. 'By continually developing new funds for investors, we aim to empower them to build resilient portfolios that may align with their financial goals, while also fostering our culture of continuous improvement and excellence in product development," he added. Also Read | MF Tracker: Can this large & mid cap scheme add spunk to your portfolio in this market? Experts typically ask investors to avoid investing in NFOs unless they offer something unique. The uniqueness could be that the scheme is offering an investment option that is not available in the market or offering something extra to an existing option. Otherwise, the experts believe investors are better off with an existing scheme with a long performance record. This is because you have some historical data to base your investment decision. You don't have any data when it comes to new offerings. According to an expert, one can invest in multi-asset allocation funds in the current market scenario as these funds offer the advantage of built-in diversification by mandating exposure to at least three distinct asset classes, with a minimum allocation of 10% in each and additionally this structure reduces the reliance on any one asset class and helps cushion the impact of equity market adds that as these asset classes have low or negative correlation with each other, decline in one segment is often offset by stability or gains in another.'Being actively managed, the fund would dynamically adjust its allocations in response to changing market conditions. This not only helps manage risk more effectively but also removes the burden from investors of having to make asset allocation decisions themselves, besides creating higher tax efficiency,' recommended Vishal Dhawan, CEO, Plan Ahead Wealth Advisors, a wealth management firm in expert recommends that one should consider investing in such a way that you are diversified across equity and debt, by investing in pureplay equity and debt funds.'Multi asset allocation funds allow you to primarily invest in equity and debt, gold as a mix. This is a type of hybrid fund where you are investing in different asset classes. However, when it comes to such funds, it is difficult for an investor to keep track of the asset allocation, which is an important metric an investor should keep track of for their portfolio,' said Chirag Muni, Executive Director, Anand Rathi Wealth LimitedShridatta Bhandwaldar, Head – Equities at Canara Robeco Asset Management Company said that, 'Canara Robeco Multi Asset Allocation Fund aims to deliver reasonable returns with lower volatility over long term. The equity portion will aim to provide long term capital appreciation while gold and silver ETF allocation will aim to act as a hedge against inflation and uncertainty, and debt allocation will aim to provide balance to the portfolio.''We believe the fund can provide a strategic edge to investors, and aim to give them an opportunity to potentially capture the upside whilst likely reducing the downside impact,' he Jain, Head - Fixed Income, Canara Robeco Asset Management Company commented that, "The fund will have the flexibility to invest across debt and money market instruments and across durations, making it suitable for investors looking for diversification across asset classes.''The fund will manage duration dynamically and hence will likely make sense for investors looking to participate in markets whilst mitigating losses during downturns,' he adds. Also Read | Quant Small Cap Fund increases stake in Shipping Corporation of India, NCC, and 8 other stocks The scheme will allocate 65-80% of the total assets towards equity and equity instruments, 10-25% towards Gold and Silver ETFs and 10-25% towards debt and money market instruments. The scheme may also invest in REITs and equity portion of the fund would be a market capitalization, style and sector agnostic and would aim to invest in high conviction portfolio with leaders with proven track record across market cycles which could provide strength and compounding to the portfolio as well as in emerging companies with improving market share to lend alpha to the portfolio through superior earnings growth, according to a press release by the fund the same time, actively managed Gold and Silver Exchange Traded Funds (ETFs) exposure and dynamic fixed income portfolio could provide hedge and strength, respectively, to the fund manager of the scheme is responsible for making buy / sell decisions for the scheme's portfolio and seeks to develop a well-diversified portfolio taking into account the asset allocation pattern of the Scheme along with risks that are associated with such investments. The investment decisions are made on an ongoing basis keeping in view the market conditions and other regulatory on the investment pattern of the multi asset allocation funds, Dhawan recommends an allocation of 10% to 20% of their overall portfolio to this category, depending on their risk appetite and investment horizon and one can also purchase these funds through SIP or STP, both methods help average out the cost of investment and bring in a level of rupee cost other expert shares a different view that as the investor does not have control over the asset allocation in the case of multi asset allocation funds and therefore, we do not suggest that one take exposure in a multi asset category at all. 'If you want gold exposure for personal goals, opt for a gold ETF with limited exposure. Debt and gold both are defence assets and together they should form a maximum 20% in the portfolio whereby gold and other can be within a range of 5-10%. Ideally opt for 80:20 in equity and debt,' Chirag said. Canara Robeco Multi Asset Allocation Fund will be benchmarked against 65% BSE 200 TRI + 20% NIFTY Short Duration Debt Index + 10% Domestic Price of Gold + 5% Domestic Price of Silver. The scheme will be managed by Amit Kadam, Ennette Fernandes, and Kunal Jain. Also Read | Edelweiss Mutual Fund lifts lumpsum cap on Recently Listed IPO Fund; Radhika Gupta shares why the timing is right to invest Multi-asset allocation funds are hybrid funds that need to invest a minimum of 10% in at least 3 asset classes. These funds typically have a combination of equity, debt, and gold. Some schemes also add international equities, InvITs and equity allocation in the case of multi-asset funds could vary between 0-70%. Aggressive multi-asset funds could typically have 50-65% equity while the conservative ones could have between 35-50%. In the case of multi-asset funds, some schemes that allocate more than 65% to equity enjoy equity of Anand Rathi Wealth mentions that multi asset allocation funds may be suitable for beginners who would find it difficult to keep track of their asset allocation strategy or have a very small portfolio and therefore, the challenge is that you will not be able to keep track of your market cap exposure and it would be difficult to ascertain whether you are adequately invested in large, mid and small cap in the right manner. Multi asset allocation funds are suitable for investors with a moderate to aggressive risk tolerance, without having to manage different fund categories. Investors having a long-term investment horizon of 5 years and those who prefer lower volatility as compared to equity mutual funds can invest in this category is what Dhawan recommends. Rebalancing between asset classes will be internal hence investors do not incur capital gains tax each time the portfolio is rebalanced. Based on allocation by Canara Robeco Multi Asset Allocation Fund it will be taxed like an equity-oriented fund that is taxed at 20% (if units are sold within 12 months) and if sold after 12 months at 12.5% (on gains above ₹1.25 lakh) + 4% cess, Dhawan further shares the tax structure of multi asset allocation to the fund house, investors looking for diversification across asset classes should invest in this fund. Additionally, the investors with a very high-risk appetite and long-term investment horizon of five years and above and investors trying to moderate their participation in market rallies while mitigating potential losses can go for this are around 23 multi asset allocation funds in the market who have completed one year of existence. WOC Multi Asset Allocation Fund has delivered the highest return of 17.10% in the last one year. DSP Multi Asset Allocation Fund delivered 13.51% return in the same period. HDFC Multi-Asset Fund has offered a return of 12.05% in the said period. Bandhan Multi Asset Allocation Fund was the last one in the list to offer double-digit returns of around 10.46% in the similar time period. Quant Multi Asset Fund was the last one to deliver the positive return in the said time period. The scheme has offered 5.22% return in the last one year. Also Read | Parag Parikh Flexicap Fund crosses Rs 1 lakh crore AUM: Neil Parikh Motilal Oswal Multi Asset Fund and Shriram Multi Asset Allocation Fund lost 8% and 1.39% respectively in the last one recommending the allocation to have in portfolio, Dhawan comments that one can hold multi asset allocation funds in the portfolio especially in volatile markets as they can help preserve capital and deliver more stable returns over time compared to pure equity funds. 'Gold, for instance, has emerged as one of the strongest-performing asset classes in recent years, especially during times of global uncertainty. Its presence in the portfolio can act as a natural hedge, offering protection when equities are under pressure. However, it is important for investors to understand the fund's asset allocation model and strategy as this will influence how the fund performs across different market cycles,' he other expert sticks to avoiding multi-asset allocation funds as they do not provide control over the asset allocation and NFOs are generally best avoided, as they lack a performance track record and the fund manager's strategy is often unclear and unlike IPOs, NFOs offer no price advantage. One should always invest based on their risk appetite, investment horizon, and goals. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) If you have any mutual fund queries, message on ET Mutual Funds on Facebook/Twitter. We will get it answered by our panel of experts. Do share your questions on ETMFqueries@ along with your age, risk profile, and Twitter handle.
Time of India
14-05-2025
- Business
- Time of India
Mid & smallcaps will consolidate till earnings recover, says Shridatta Bhandwaldar
Shridatta Bhandwaldar , Head of Equities at Canara Robeco AMC, believes India's equity story needs a more balanced, professionally managed asset allocation approach. In this interview, he breaks down the rationale behind launching the Canara Robeco Multi Asset Allocation Fund and his outlook on small and midcap stocks. Edited excerpts: What was the core insight or market gap that inspired the launch of the Canara Robeco Multi Asset Allocation Fund—why now, and why this mix? Investors and households are persistently making asset allocation choices between – equities, fixed deposits, real estate, fixed income, precious metals etc. Fundamentally when you look at current asset allocation in a typical Indian household, it's skewed towards Fixed deposits and real estate. When you look at this skew – you know that there is a need for a professional approach to asset allocation to find a balance between risk and returns. Also, we observed that investors are either hyperactive or passive in their asset allocation approach. Fundamentally, Canara Robeco Multi Asset Allocation Fund will help investors to professionally manage asset allocation between equity & equity related instruments, debt instruments and Gold and Silver Exchange Traded Fund (ETF). We believe that there is a need for this product and as CRAMC, we can add value to investors through this category. Gross equity of 65% is chosen to ensure superior risk adjusted returns over period and equity taxation benefits. This apart, on 'why now'; in our opinion, Multi Asset Allocation Fund, being an all-weather category, timing the launch of the product has low relevance. Multi-asset strategies sound like the new black in a volatile world. How does your fund navigate the current global uncertainties—be it sticky inflation, shifting central bank tones, or geopolitical jitters? Canara Robeco Multi Asset Allocation Fund will be an interplay of equity (net equity of 30 %-80%, Gross equity of 65%), debt (10-25%) and precious metals (10-25% of Gold ETF/ Silver ETF). These assets have low or inverse co-relation with each other – thus reducing volatility of outcomes through cycles. While optimal equity allocation would help in enhancing returns through cycles; Gold ETF/Silver ETF and fixed income will enhance downside protection and act as a hedge against inflation / economic or geopolitical uncertainty respectively. This product is a good way to manage volatility and generate optimum returns across cycles. Investors love returns, but they hate surprises. What kind of risk-adjusted performance or consistency can investors realistically expect from this new fund? Based on category returns – one should expect returns in excess of fixed income with much lower volatility than any single asset class may generate. What's your call on equity valuations , especially in mid and small caps? Current valuations of mid and small caps are between 22-25x FY27 consensus earnings. This is 10%-15% higher than historical valuations and thus we expect consolidation in them till corporate earnings improve meaningfully. It is to be noted here that FY25 earnings growth has been low single digit so far. Are Indian markets priced for perfection, or do you still see underappreciated sectors where the story is just beginning? Large caps are largely in the fair value zone whereas mid and small caps continue to be expensive as highlighted in the previous question. Markets at all points in time have sectors which are expensive and others which are under-appreciated. We think pockets in discretionary consumption, financials and global cyclicals, building materials, etc. are under appreciated in the current market. Domestic SIP flows are holding the fort even when FIIs get cold feet. How sustainable is this retail resilience and can it shield us in the event of a global risk-off? Indian household's equity allocation through SIP has been resilient. If corporate earnings revive in FY26 from the current low single digit in FY25; this trend might continue for a longer period. These flows help in increasing our markets' resilience against global events. If you had to bet on just one theme for the next 12-18 months - be it consumption, manufacturing, AI, or energy transition—where would you place your chips? We don't think one should bet on one theme. We see markets in the next 12-18 months to be more bottom-up than top down and thus one needs to find out good opportunities across consumption, manufacturing and energy transition. There are limited plays on AI transition in India. One might find more bottom-up ideas in consumption over next 12-18 months against the other themes.
Time of India
08-05-2025
- Business
- Time of India
NFO Alert: Canara Robeco Mutual Fund launches multi asset allocation fund
Canara Robeco Mutual Fund has announced the launch of Canara Robeco Multi Asset Allocation Fund , an open-ended hybrid fund aiming to generate alpha when markets are doing well and reduce downside risk in times of bad market periods. #Operation Sindoor Live Updates| From Sindoor to showdown? Track Indo-Pak conflict as it unfolds Pakistan tried to hit military targets in these 15 Indian cities, New Delhi thwarts strikes India hits Lahore's Air Defence Radars in proportionate response The new fund offer or NFO of the scheme will open for subscription on May 9 and will close on May 23. The Scheme would re-open on or before June 6. Also Read | Parag Parikh Flexicap Fund crosses Rs 1 lakh crore AUM: Neil Parikh Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like An Khanh: Unsold Furniture Liquidation 2024 (Prices May Surprise You) Unsold Furniture | Search Ads Learn More Undo The fund is an open-ended scheme investing in equity and equity related instruments, debt and money market instruments, Gold ETFs and Silver ETFs. The active multi asset allocation strategy aims to navigate all market conditions. The fund will focus on periodic optimisation of asset classes in response to changing economic factors, earning momentum, market valuation, and equity risk premium, facilitating portfolio alignment. Live Events "The launch of Canara Robeco Multi Asset Allocation Fund not just expands our product offerings, it also enhances our ability to provide investors with diversified solutions tailored to meet the evolving needs of the market,' said Rajnish Narula, Chief Executive Officer, Canara Robeco Asset Management. 'By continually developing new funds for investors, we aim to empower them to build resilient portfolios that may align with their financial goals, while also fostering our culture of continuous improvement and excellence in product development," he added. The scheme will allocate 65-80% of the total assets towards equity and equity instruments, 10-25% towards Gold and Silver ETFs and 10-25% towards debt and money market instruments. The Scheme may also invest in REITs and InvITs. 'Canara Robeco Multi Asset Allocation Fund aims to deliver reasonable returns with lower volatility over the long term. The equity portion will aim to provide long term capital appreciation while gold and silver ETF allocation will aim to act as a hedge against inflation and uncertainty, and debt allocation will aim to provide balance to the portfolio,' said Shridatta Bhandwaldar, Head – Equities at Canara Robeco Asset Management. 'We believe the fund can provide a strategic edge to investors, and aim to give them an opportunity to potentially capture the upside whilst likely reducing the downside impact,' he said. Also Read | These 10 mutual funds had largest positions in companies listed on NSE in March The equity portion of the fund would be a market capitalization, style and sector agnostic and would aim to invest in high conviction portfolio with leaders with proven track record across market cycles which could provide strength and compounding to the portfolio as well as in emerging companies with improving market share to lend alpha to the portfolio through superior earnings growth. At the same time, actively managed Gold and Silver Exchange Traded Funds (ETFs) exposure and dynamic fixed income portfolio could provide hedge and strength, respectively, to the portfolio. "The fund will have the flexibility to invest across debt and money market instruments and across durations, making it suitable for investors looking for diversification across asset classes,' said Avnish Jain, Head - Fixed Income, Canara Robeco Asset Management Company. 'The fund will manage duration dynamically and hence will likely make sense for investors looking to participate in markets whilst mitigating losses during downturns.' Canara Robeco Multi Asset Allocation Fund will be benchmarked against 65% BSE 200 TRI + 20% NIFTY Short Duration Debt Index + 10% Domestic Price of Gold + 5% Domestic Price of Silver. The scheme will be managed by Amit Kadam, Ennette Fernandes, and Kunal Jain. 'Canara Robeco Multi Asset Allocation Fund offers a smart solution for dynamic asset allocation, harnessing the power of 3 asset classes – equity, debt, and gold & silver ETFs – to provide investors with a dynamic mix. The fund could also be suitable for investors looking at regular cash flows using the Systematic Withdrawal Plan (SWP) feature,' said Gaurav Goyal, Head - Sales and Marketing, Canara Robeco Asset Management Company. 'To ensure better communication with our partners, we have developed marketing materials in vernacular languages. Additionally, we have created a rap song to make the concept of Multi Asset Allocation Fund (MAAF) fun and easy to understand, helping our investors engage with the fund better.' The multi asset allocation fund is suitable for long term investors seeking diversification across asset classes.
