Monthly SIP of Rs 10,000 in this consumer fund gave Rs 85 lakhs in 15 years. Should you invest now?
The fund's Assets Under Management (AUM) as of August 30, 2024, stood at Rs 1,759.96 crore. Over the past 15 years, the fund has consistently delivered a Compound Annual Growth Rate (CAGR) of 17.62% in the regular plan.
- Sep 18, 2024,
- Updated Sep 18, 2024 1:10 PM IST
The Canara Robeco Consumer Trends Fund has completed 15 years of existence. Launched in September 2009, it is a thematic consumption mutual fund scheme, which follows a consumption and finance theme. A monthly SIP of Rs 10,000 invested from 2009 has given Rs 84.81 lakh, which is an annualised return of 18.64%. Whereas, a lumpsum investment of Rs 10,000 in 2009 would have given Rs 1.13 lakh till the last of August 2024.
The fund currently manages Assets Under Management (AUM) of Rs 1,759.96 crore as of 30th August, 2024. Over the last 15 years, the fund has been able to achieve a Compound Annual Growth Rate (CAGR) of 17.62% in the regular plan, growth option for investors. In comparison, the benchmark index BSE 100 TRI has delivered a CAGR of 13.54% and the additional benchmark index BSE SENSEX TRI has achieved a CAGR of 12.99% over the same period.
In 10 years, an initial investment of Rs 12 lakh has grown to Rs 34.52 lakh, indicating an annualised return of 20.05%. In the subsequent seven years, a sum of Rs 8.40 lakh has appreciated to Rs 18.94 lakh, showcasing a return of 22.85%. In the five-year span, an investment of Rs 6 lakh has transitioned to Rs 11.59 lakh, delivering a return of 26.73%. Lastly, within a three-year period, an amount of Rs 3.60 lakh has surged to Rs 5.48 lakh, demonstrating a return of 29.32%. In the 12 months, an initial amount of Rs 1.20 lakh has seen an increment to Rs 1.49 lakh, resulting in a noteworthy return of 48.65%.
1-Year Return: Annualised return: 48.65% Investment: Rs. 1.20 lakh
3-Year Return: Annualised return: 29.32% Investment: Rs. 3.60 lakh
5-Year Return: Annualised return: 26.73% Investment: Rs. 6 lakh
7-Year Return: Annualised return: 22.85% Investment: Rs. 8.40 lakh
10-Year Return: Annualised return: 20.05% Investment: Rs. 12 lakh
15-Year Return: Annualised return: 18.64% Investment: Monthly SIP of Rs. 10,000
Stock portfolio
On August 30, 2024, the fund showcased a concentrated portfolio comprising 45 stocks. The primary sectors driving the portfolio's allocation include retailing, finance, banking, and consumer durables, collectively accounting for 41% of the total portfolio. The fund's preferred sectors are Financial, Consumer Staples, Services, Automobile, and Consumer Discretionary. A distinct strategy observed is the fund's reduced exposure to the Financial and Consumer Staples sectors compared to its industry counterparts. Among its key investments are ITC Ltd., Bharti Airtel Ltd., HDFC Bank Ltd., Zomato Ltd., and Trent Ltd.
Key highlights
Performance Update: The fund has demonstrated a strong performance track record, delivering a Compound Annual Growth Rate (CAGR) of 17.62% over the past 15 years, surpassing its benchmark indices.
Asset Under Management (AUM): The fund's Asset Under Management (AUM) has recently reached Rs 1,759.96 crore, reflecting steady growth and investor confidence.
Investment Strategy: The fund adopts a diversified investment approach by investing in companies of various market capitalizations. The primary focus is on companies poised to benefit from India's consumption-driven economy.
Portfolio Composition: The fund's portfolio exhibits a strategic concentration in sectors such as retailing, finance, banking, and consumer durables, emphasising a well-researched and targeted investment strategy.
Outlook: Despite market uncertainties, Canara Robeco maintains a positive outlook on the long-term growth potential of the Indian consumption theme, underlining its commitment to delivering value to investors through strategic investments.
Asset allocation: The Canara Robeco Consumer Trends Fund focuses on investing primarily in equity and equity related instruments of companies that are poised to benefit from the increasing consumer demand in India. The fund allocates 80% to 100% of its assets in such securities, emphasizing exposure to this sector.
Additionally, a portion of the fund (0% to 20%) is invested in debt and money market instruments to diversify the portfolio. Furthermore, it may allocate 0% to 10% in REITs/InvITs and up to 20% in other equity and equity related instruments to potentially enhance returns and manage risk.
"As a fund house that’s crossed an AUM of Rs 1 lakh crore, we are happy to see investor confidence not just in us but also the nation at large. We continue to play the consumption and finance theme with the belief that with an increase in population and growth of income, there could be an increase in spending. We expect our Consumer Trends Fund to benefit from demographic advantage of ‘Young India’ for the next decade and the rapid urbanization and evolution of cities," said Rajnish Narula, MD & CEO, Canara Robeco Mutual Fund.
“We expect our Consumer Trends Fund to benefit from demographic advantage of ‘Young India’ for the next decade and the rapid urbanization and evolution of cities. We also expect a turnaround in the economic cycle leading to an increase in employment which will boost discretionary consumption and benefit sectors that fund invests in.” he added.
The Canara Robeco Consumer Trends Fund has completed 15 years of existence. Launched in September 2009, it is a thematic consumption mutual fund scheme, which follows a consumption and finance theme. A monthly SIP of Rs 10,000 invested from 2009 has given Rs 84.81 lakh, which is an annualised return of 18.64%. Whereas, a lumpsum investment of Rs 10,000 in 2009 would have given Rs 1.13 lakh till the last of August 2024.
The fund currently manages Assets Under Management (AUM) of Rs 1,759.96 crore as of 30th August, 2024. Over the last 15 years, the fund has been able to achieve a Compound Annual Growth Rate (CAGR) of 17.62% in the regular plan, growth option for investors. In comparison, the benchmark index BSE 100 TRI has delivered a CAGR of 13.54% and the additional benchmark index BSE SENSEX TRI has achieved a CAGR of 12.99% over the same period.
In 10 years, an initial investment of Rs 12 lakh has grown to Rs 34.52 lakh, indicating an annualised return of 20.05%. In the subsequent seven years, a sum of Rs 8.40 lakh has appreciated to Rs 18.94 lakh, showcasing a return of 22.85%. In the five-year span, an investment of Rs 6 lakh has transitioned to Rs 11.59 lakh, delivering a return of 26.73%. Lastly, within a three-year period, an amount of Rs 3.60 lakh has surged to Rs 5.48 lakh, demonstrating a return of 29.32%. In the 12 months, an initial amount of Rs 1.20 lakh has seen an increment to Rs 1.49 lakh, resulting in a noteworthy return of 48.65%.
1-Year Return: Annualised return: 48.65% Investment: Rs. 1.20 lakh
3-Year Return: Annualised return: 29.32% Investment: Rs. 3.60 lakh
5-Year Return: Annualised return: 26.73% Investment: Rs. 6 lakh
7-Year Return: Annualised return: 22.85% Investment: Rs. 8.40 lakh
10-Year Return: Annualised return: 20.05% Investment: Rs. 12 lakh
15-Year Return: Annualised return: 18.64% Investment: Monthly SIP of Rs. 10,000
Stock portfolio
On August 30, 2024, the fund showcased a concentrated portfolio comprising 45 stocks. The primary sectors driving the portfolio's allocation include retailing, finance, banking, and consumer durables, collectively accounting for 41% of the total portfolio. The fund's preferred sectors are Financial, Consumer Staples, Services, Automobile, and Consumer Discretionary. A distinct strategy observed is the fund's reduced exposure to the Financial and Consumer Staples sectors compared to its industry counterparts. Among its key investments are ITC Ltd., Bharti Airtel Ltd., HDFC Bank Ltd., Zomato Ltd., and Trent Ltd.
Key highlights
Performance Update: The fund has demonstrated a strong performance track record, delivering a Compound Annual Growth Rate (CAGR) of 17.62% over the past 15 years, surpassing its benchmark indices.
Asset Under Management (AUM): The fund's Asset Under Management (AUM) has recently reached Rs 1,759.96 crore, reflecting steady growth and investor confidence.
Investment Strategy: The fund adopts a diversified investment approach by investing in companies of various market capitalizations. The primary focus is on companies poised to benefit from India's consumption-driven economy.
Portfolio Composition: The fund's portfolio exhibits a strategic concentration in sectors such as retailing, finance, banking, and consumer durables, emphasising a well-researched and targeted investment strategy.
Outlook: Despite market uncertainties, Canara Robeco maintains a positive outlook on the long-term growth potential of the Indian consumption theme, underlining its commitment to delivering value to investors through strategic investments.
Asset allocation: The Canara Robeco Consumer Trends Fund focuses on investing primarily in equity and equity related instruments of companies that are poised to benefit from the increasing consumer demand in India. The fund allocates 80% to 100% of its assets in such securities, emphasizing exposure to this sector.
Additionally, a portion of the fund (0% to 20%) is invested in debt and money market instruments to diversify the portfolio. Furthermore, it may allocate 0% to 10% in REITs/InvITs and up to 20% in other equity and equity related instruments to potentially enhance returns and manage risk.
"As a fund house that’s crossed an AUM of Rs 1 lakh crore, we are happy to see investor confidence not just in us but also the nation at large. We continue to play the consumption and finance theme with the belief that with an increase in population and growth of income, there could be an increase in spending. We expect our Consumer Trends Fund to benefit from demographic advantage of ‘Young India’ for the next decade and the rapid urbanization and evolution of cities," said Rajnish Narula, MD & CEO, Canara Robeco Mutual Fund.
“We expect our Consumer Trends Fund to benefit from demographic advantage of ‘Young India’ for the next decade and the rapid urbanization and evolution of cities. We also expect a turnaround in the economic cycle leading to an increase in employment which will boost discretionary consumption and benefit sectors that fund invests in.” he added.