Rs 10,000 Investment Grows to Rs 1,13,560: 15 Years of Canara Robeco Consumer Trends Fund

Impressive Performance Over the Years

As of August 30, 2024, the Canara Robeco Consumer Trends Fund manages Assets Under Management (AUM) worth Rs. 1,759.96 crores. Over the past 15 years, the fund has delivered a Compound Annual Growth Rate (CAGR) of 17.62% in the regular plan, growth option, significantly outperforming its benchmarks—the BSE 100 TRI and the BSE SENSEX TRI, which have achieved CAGRs of 13.54% and 12.99%, respectively, over the same period. To put it in perspective, a Rs. 10,000 investment in the fund at its inception would have grown to Rs. 1,13,560 as of August 30, 2024, showcasing its strong performance.

Key Investment Themes and Strategy

The Canara Robeco Consumer Trends Fund focuses on stocks across various market capitalizations, targeting companies that directly or indirectly benefit from India’s increasing consumption trends. The fund’s portfolio is concentrated, comprising 45 stocks as of August 30, 2024, with significant allocations in retailing, finance, banking, and consumer durables, which together form 41% of the portfolio.

Management’s Vision and Outlook

Rajinish Narula, MD & CEO of Canara Robeco Mutual Fund, emphasized the fund’s alignment with India’s demographic advantage and consumption theme. Citing an analysis by Boston Consulting Group, he noted that the share of elite and affluent households in India could reach 40% by 2025. He expressed confidence in the fund’s future, driven by factors such as rapid urbanization, evolving cities, increased employment, and rising income levels, all of which are expected to boost discretionary spending and benefit sectors within the fund’s investment universe.

Shridatta Bhandwaldar, Head Equities at Canara Robeco Mutual Fund, highlighted India’s status as a consumption-driven economy, powered by a growing working-age population. He described the fund’s growth style of investing, designed to capitalize on aspirational consumption and financial penetration, aiming to provide long-term capital appreciation for investors who believe in India’s consumption and finance growth story.

A Gateway to India’s Growth Story

Gaurav Goyal, National Head Sales and Marketing, emphasized the fund’s role as a gateway for investors to participate in India’s growth story. He pointed out that the dynamic nature of Indian consumption trends, driven by the nation’s youthful population, fuels innovation and creates opportunities for new products and services. Goyal reiterated the importance of including such thematic investments in every investor’s portfolio to capitalize on India’s consumption boom.

Portfolio Composition and Management Team

The Canara Robeco Consumer Trends Fund maintains a disciplined investment approach, allocating 80% to 100% of its assets in equity and equity-related instruments that benefit from rising consumer demand in India. Additionally, the fund holds flexibility, investing up to 20% in debt and money market instruments, up to 10% in REITs/InvITs, and up to 20% in other equity and related instruments. The fund is expertly managed by Shridatta Bhandwaldar, Head Equities, and Ennette Fernandes, Fund Manager.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.