Canara Robeco Emerging Equities Fund: Good long term investment option in market recovery phase

Current market conditions

The market is in recovery phase after President Trump announced a 90 day pause on his administration's proposed tariffs on imports from the United States' trading partner. The market is hopeful that a mutually satisfactory resolution will be achieved on tariffs in the next 90 days. The Nifty is back above the 23,500 level and though there is a long way to the previous high, it seems that the market has bottomed out at least in the short term. The deep correction has led to valuations moderating across all market cap segments (see the graphic below). Current levels may provide attractive investment opportunities for long-term investors.

Source: NSE, Advisorkhoj research as on 31^st March 2025

About Canara Robeco Emerging Equity Fund

Canara Robeco emerging equity fund has recently completed 20 years since launch. The fund has Rs 23,165 crores of assets under management with an expense ratio of 1.62% (Regular Plan). The fund invests primarily in large and midcap stocks. As per SEBI's mandate, large and midcap funds must invest a minimum of 35% of their assets in large cap stocks (Top 100 stocks by market capitalization) and minimum 35% of the assets in midcap stocks (101^st to 250^th stocks by market cap).

Canara Robeco Emerging Equity Fund has a long track record of wealth creation. The fund has a long track record of wealth creation. The chart below shows growth of Rs 10,000 monthly SIP in Canara Robeco Emerging Equity Fund. With a cumulative investment of Rs 24.1 lakhs only, you could have accumulated a corpus of Rs 1.87 crores.

Source: Advisorkhoj research as on 31^st March 2025

Outperformed benchmark index over long investment tenures

The charts below show the 5 year rolling returns (rolled daily) of Canara Robeco Emerging Equities Fund versus the benchmark index since the inception of the fund. You can see that over longer investment tenures, the scheme has been able to beat the benchmark across different market conditions most of the time.

The chart below shows the 5 year returns distribution of Canara Robeco Emerging Equities Fund versus the benchmark index. You can see that the fund delivered 20%+ CAGR returns in significantly higher proportion of instances compared to the benchmark. If we look at 15%+ CAGR returns, the percentage of instances of Canara Robeco Emerging Equities Fund delivering such returns is significantly higher than the benchmark index.

Source: Advisorkhoj research as on 31^st March 2025

Suitable for longer investment tenures

The table below shows the average and median rolling of Canara Robeco Emerging Equity Fund versus Nifty Large Midcap 250 TRI over different investment tenures. The fund has not only outperformed the benchmark index across different investment tenures, but performance as well as outperformance is also greater over longer investment tenures. As such, longer investment tenures may be suitable for this fund.

Source: Advisorkhoj research as on 31^st March 2025. *Since inception of Canara Robeco Emerging Equity Fund

Lower volatility relative to peers

We looked at the standard deviations (a measure of volatility) of all the funds in the large and midcap funds category (we looked at only those funds who have minimum track record of 3 years). You can see that Canara Robeco Emerging Equities Fund (marked in blue) has lower volatility compared to most peers in the large and midcap funds category.

Source: Advisorkhoj research as on 31^st March 2025

Limited downside risks for investors

The chart below shows the drawdowns of the fund versus the benchmark index over the last 1 year. You can see that the fund limited downside risks for investors.

Source: Advisorkhoj research as on 31^st March 2025

Current portfolio positioning

The chart below shows the asset allocation / market cap mix of the funds in the large and midcap category. You can see that Canara Robeco Emerging Equities Fund has relatively higher mid and small cap allocations compared to the category average.

Source: Advisorkhoj research as on 31^st March 2025

Why invest in the Canara Robeco Emerging Equities fund?

The fund has a quality orientation. As a result, the fund saw smaller drawdown in major corrections in the recent past. There are several reasons why we like the scheme: -

• Bottom-up stock picking endeavors to select the best among the emerging companies which form part of the portfolio.


• Fund manager's endeavor to identify companies which have the potential to become leaders of tomorrow in their respective sectors.


• The fund invests with a long-term view, staying away from herd behavior, chasing short term profits, running after certain market spurs. Such behavior/short term approach tends to be very risky and may not pay off in the long term.


• The scheme has a long-term track record of strong performance and alpha creation.


• The recent deep correction, especially in mid and small cap segments, can provide attractive investment opportunities for long-term investors in the market recovery phase.

Who should invest in the Canara Robeco Emerging Equity Fund?

• Investors who are looking for capital appreciation over long investment tenures.


• Investors with a minimum of 5 years of investment tenure.


• Investors with a high or high-risk appetite.

Consult your financial advisors or mutual fund distributors if Canara Robeco Emerging Equities Fund is suitable for your investment needs.