Canara Robeco Large Cap Fund: A consistent wealth creator

Current market context

The equity market turned volatile after the Trump Administration imposed 50% tariffs on Indian exports to the United States. Though tariff worries dragged the market down, we did not witness a big drawdown as some were fearing. In the last few days, the market has made a smart recovery in anticipation of GST rate rationalization, as announced by the Prime Minister in his Independence Day address. Due to rapidly shifting geo-political dynamics, uncertainty may linger on in the near term. Though valuations have moderated from peak, there are still valuation related concerns particularly in mid and small cap segment (see the graphic below). In the current market conditions, large cap funds may be suitable investment options for long term investors. In this article we will review Canara Robeco Large Cap fund, a top performing and one of the most consistent large cap funds.

Source: Advisorkhoj Research, as on 31^st August 2025.

Strong wealth creation

The fund has completed 15 years since launch and has a strong wealth creation track record. The chart below shows the growth of Rs 1 lakh investment track record since the inception of the fund.

Source: Advisorkhoj Research, as on 31^st August 2025.

Consistently outperformed peers

The chart below shows the 3 year rolling returns of the fund versus the large cap category average since 2018 (after SEBI brought market cap specific mandates for mutual funds). You can see that the fund consistently outperformed its peers across different market conditions.

Source: Advisorkhoj Research, as on 31^st August 2025.

The chart below shows the 3 year rolling returns distribution of the fund versus the category average. You can see that the fund always gave double digit (10%+) CAGR returns over 3 year investment tenures since 2018. Furthermore, the fund gave 12%+ CAGR returns in 97% of the instances (much more consistent than peers).

Source: Advisorkhoj Research, as on 31^st August 2025.

Consistent risk / return outperformance versus the benchmark index

The table below shows the 1 year, 3 years and 5 years rolling returns statistics of Canara Robeco Large Cap Fund versus the benchmark index (Nifty 100 TRI) since 2018. You can see that the fund not only outperformed the benchmark in terms of average and median returns, it also limited the downside risks for investors relative to the benchmark index. In other the words, the fund has offered superior risk return trade off to investors relative to the benchmark index.

Source: Advisorkhoj Research, as on 31^st August 2025. Benchmark index is Nifty 100 TRI.

Smaller drawdown in volatile market

The market has been volatile for the last 1 year. Though volatility is an intrinsic characteristic of equity as an asset class, high volatility may cause investors to make decisions in panic due to behavioural biases e.g. greed / fear. Canara Robeco large cap fund experienced small drawdowns relative to benchmark index, providing a better investment experience to investors.

Source: Advisorkhoj Research, as on 31^st August 2025.

Consistently in upper quartiles

The graphic below shows the quartile ranking of quarterly returns of the fund over last 12 quarters. You can see that the fund has been in the upper 2 quartiles, 7 times in the last 12 quarters, including 4 consecutive quarters in the top 2 quartiles (see the graphic below).

Source: Advisorkhoj Research, as on 30^th June 2025.

Market capture ratios - Superior risk adjusted returns

Market capture ratio is a measure of the performance of a mutual fund scheme relative to its benchmark index in rising and falling markets. Up Market Capture Ratio tells us how much percentage of the market's upside was captured by the fund, while Down Market Capture Ratio tells us how much percentage of the market's downside was arrested by the fund. Up-Market Capture Ratio and Down-Market Capture ratio can give us a sense of risk adjusted returns. We looked at the market capture ratios of Canara Robeco Large Cap Fund over the last 3 year.

The Up Market Capture Ratio of Canara Robeco Large Cap Fund was 96% which implies that if the benchmark index went up by 1% in a month, then the scheme's Net Asset Value (NAV) went up by 0.96%. The Down Market Capture Ratio of the fund was only 83% which implies that if the benchmark index went down by 1% in a month, then the scheme's Net Asset Value (NAV) went down by 0.83% only. The market capture ratios of Canara Robeco Large Cap Fund are a clear indication of the potential of the fund to give superior risk adjusted returns of the fund.

Wealth creation through SIP

The chart below shows the growth of Rs 10,000 monthly SIP in Canara Robeco Large Cap Fund since the inception of the scheme. You can see that with a cumulative investment of Rs 18 lakhs, you could have accumulated a corpus of ~ Rs 59 lakhs over the last 15 years (as on 31^st August 2025). The annualized SIP return (XIRR) of the scheme since inception was 14.4%.

Source: Advisorkhoj Research, as on 31^st August 2025.

SIP Rolling Returns (XIRR%)

The chart below shows the 10 year monthly SIP rolling returns of Canara Robeco Large Cap Fund. You can see that the 10 year monthly SIP returns of the fund have always been more than 10%. Upon careful observation you will also notice that the SIP rolling returns have almost always (more 94% of the instances) been above 12% XIRR. The average and median 10 year SIP rolling returns (XIRR) of the fund are higher than the benchmark index. Also, the maximum and minimum SIP XIRR of the fund are both higher than the benchmark index.

Source: Advisorkhoj Research, as on 31^st August 2025. Assumption: SIP investments were made on 1^st of every month.

The chart below shows the 10 year month SIP rolling returns (XIRR) distribution of the fund versus the benchmark index since the inception of the fund. You can see that the fund always gave double digit (10%+) XIRR returns over 10 year since the inception. Furthermore, the fund gave 12%+ CAGR returns in 95% of the instances (much more consistent than benchmark index).

Source: Advisorkhoj Research, as on 31^st August 2025. Assumption: SIP investments were made on 1^st of every month.

SWP returns

The chart below shows the results of monthly SWP of Rs 30,000 from a lump sum of investment of Rs 50 lakhs in Canara Robeco Large Cap Fund over the last 10 years. You can see that despite withdrawing Rs 36 lakhs from your initial investment of Rs 50 lakhs, the market value of your balance units would have grown to Rs 91.5 lakhs (as on 31^st August 2025). During this period the market went through the several periods of high volatility and even large drawdowns (e.g. China Slowdown, Demonetization, COVID-19, Russia Ukraine War, Operation Sindoor, Trump Tariffs etc), yet you could draw a monthly cash-flows through SWP and also get capital appreciation.

Source: Advisorkhoj Research, as on 31^st August 2025.

Current portfolio positioning

Source: Canara Robeco, Advisorkhoj Research, as on 31^st August 2025

The fund is underweight (versus the benchmark index) on sectors that have underperformed versus the benchmark index and overweight on the sectors that have outperformed (see the graphic below) – resulting in net outperformance.

Source: Canara Robeco, National Stock Exchange, Advisorkhoj Research, as on 31^st August 2025. *Benchmark is Nifty 100 TRI.

Who should invest in Canara Robeco Large Cap Fund?

• Investors looking for capital appreciation and wealth creation over long term investment horizons with minimum 5-year investment tenures


• Investors with high-risk appetites


• The fund may be suitable for new investors

Investors should consult their financial advisors or mutual fund distributors if Canara Robeco Large Cap Fund is suitable for their investment needs.