The scheme seeks to build a balanced portfolio, which would provide a combination of high annual return and capital appreciation. The scheme was made open-ended from March 2000.
Fund Managers- Avnish Jain since Oct 2013 Krishna Sanghvi since Sep 2012
Analysis
Canara Robeco Balance is the oldest balanced fund that's still around. While it's older history may not be of much relevance to current investors, the period since 2001 has seen it make its mark as a quintessential fund of this category. It registers substantial gains when the equity markets are doing well, and limits losses when the markets fall. It's recovery after the global financial crisis of 2008-09 is the perfect example. Compared to the high it reached before the fall, it's up by about 32 per cent now.
In keeping with its steady performance, it has underperformed the category average only for two calendar years in the last ten. Technically, it underperformed the category in 2012 too, but that was by 26.4 per cent to 26.7 per cent. In the comparison with the benchmark, this fund comes off even better. Except for a lag of 2.3 per cent in 2013, it hasn't been beaten by the index at all.
To be sure, in many of these years it has beaten the benchmark by only a small margin, but that is characteristic of a conservative fund. Unlike a peer which will have a big lead in six years and a lag in four, this fund will take a slow and steady approach. Surely, there are many investors who prefer the tortoise to the hare.
This fund is essentially a large cap fund, with the mid-cap exposure staying within the 20 to 30 per cent range, and a greater affinity for the lower end than the upper one. As far as sectors go, the distribution has stayed close to that of the benchmark. During the last few months, major deviations have been positive ones for communications and FMCG, and negative ones for engineering and metals.
According to the fund manager, the debt-equity ratio is rebalanced not by the calendar but depending on a number of macro and micro-level variables. In terms of actual portfolio choices, a combination of top-down and bottom up strategy is followed.
All things considered, here's a conservatively run fund that will deliver mild positive surprises and almost no negative ones.
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