Canara Robeco has filed draft documents with the Securities and Exchange Board of India (SEBI) for Canara Robeco Capital Protection Oriented Fund – Series 10. A capital protection oriented fund guarantees the security of your capital (you get your principal amount back at the end of the fund’s tenure). In addition, you may get higher returns depending on the performance of the equity component of the fund.
The scheme will invest 70 to 100 percent of its assets in debt and money market instruments in order to ensure your principal is returned to you. Investments in equity and equity-linked instruments are capped at 30 percent. The fund thus tries to reduce risk while maximising return potential through this equity-debt combination.
The capital protection oriented space has schemes by players like ICICI Prudential, Reliance, SBI, among others. According to the draft documents, the scheme will have a tenure ranging from one year to 66 months (2008 days) from the allotment date (including allotment date). The exact duration of the scheme will be finalized at the time of launch of the scheme. The scheme will have no exit load and the minimum application amount is Rs. 5,000.
The scheme will be benchmarked as followed, according to the tenure:
|Tenure of scheme||Benchmark|
|Less than 548 days||95 percent CRISIL Short Term Bond Index + 5 percent Nifty 50 Index TRI|
|More than/equal to 548 days, but less than 730 days||92 percent CRISIL Short Term Bond Index + 8 percent Nifty 50 Index TRI|
|More than/equal to 730 days, but less than 1095 days||90 percent CRISIL Short Term Bond Index + 10 percent Nifty 50 Index TRI|
|More than/equal to 1095 days, but less than or equal to 2008 days||CRISIL Hybrid 85+15 – Conservative Index|
The scheme is managed by Shridatta Bhandwaldar and Suman Prasad. Bhandwaldar and Prasad have also co-managed the Series 8 and Series 9 of the Canara Robeco Capital Protection Oriented Fund. Returns for Series 8, since its launch in May 2017, have been 5.59 percent annualised. Canara Robeco Capital Protection Oriented Fund – Series 9, which was launched in February 2018, has seen returns of 3.12 percent till date. (As of Nov. 16, 2018)
Date: 19 NOV 2018