Canara Robeco Multi Asset Allocation Fund Filed Draft With SEBI

Canara Robeco Mutual Fund has submitted a draft offer document to SEBI for its upcoming Canara Robeco Multi Asset Allocation Fund. This is an open-ended hybrid scheme that plans to invest in multiple asset classes, including equities, debt instruments, and commodities like gold and silver ETFs.

Asset Allocation Breakdown

The fund will follow a structured asset allocation model:

• Equities and Equity-related Instruments: 65%-80%
• Debt and Money Market Instruments: 10%-25%
• Gold and Silver ETFs: 10%-25%

It also invests up to 10% in units issued by Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs). The fund’s exposure to derivatives will be capped at 50% of net assets, mainly for hedging and portfolio balancing purposes.

Liquidity and Redemption Process

As an open-ended scheme, investors will be able to subscribe or redeem units on any business day. The fund will not be listed on stock exchanges. Redemption proceeds are expected to be processed within three working days, barring exceptional situations that may warrant additional time.

Benchmark Composition

To assess the fund’s performance, it will be benchmarked against a mixed index for exposure across various asset classes.:

• 65% BSE 200 TRI
• 20% NIFTY Short Duration Debt Index
• 10% Domestic Gold Price
• 5% Domestic Silver Price

Investment Objective

The scheme aims for long-term capital appreciation by diversifying across asset classes. However, as with any mutual fund, returns are not guaranteed. Investors should assess their risk appetite before investing.

Key Details

• Minimum Investment: ₹5,000 for lump sum purchases
• SIP Investment: ₹1,000 per month or ₹2,000 per quarter
• Exit Load: 1% if redeemed within 365 days for amounts exceeding 12% of allotted units; Nil for redemptions beyond one year.

The equity portion will be managed by Ennette Fernandes and the debt segment will be overseen by Kunal Jain, who has experience in fixed-income securities.The fund’s launch date and subscription details will be provided once SEBI grants approval. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Mutual Fund investments in the securities market are subject to market risks, read all the related documents carefully before investing.