Fund Of The Month:Canara Robeco Equity Hybrid Fund (G)

Canara Robeco Equity Hybrid fund can invest in equity and debt in 75:25 proportion. It brings the best of equity and debt asset class. The equity portion helps to get returns, and the debt portion provides a cushion. An aggressive hybrid category is less risky than a pure equity fund but can potentially offer equity returns in the long term.

• ASSET CLASS: Hybrid                                            
• CATEGORY: Aggressive Hybrid Fund
• HORIZON: Medium to long term
• FUND MANAGER: Shridatta Bhandwaldar
• LAUNCH: 30-Nov-2009
• BENCHMARK: CRISIL Hybrid 35+65- Aggressive Index     

Fund Performance

The above chart shows that the fund has a good track record of delivering positive returns almost 90 times over the last 5 years.

In investing, being consistent with low volatility is more important. Canara Robeco Hybrid Equity fund delivers that – its average rolling return over the previous 5 years is 13.37%, with average volatility of 12.04%. This proves our case of having a fund with a better average return with low volatility.

Note: The above list of top 5 aggressive hybrid funds has been arrived at by analysing the following parameters. (1) Rolling Returns- Rolling return is calculated for a particular period continuously (or fixed frequency). Rolling returns can offer better insight into a fund’s more comprehensive return history.

(2)Positive % – It represents the fund’s frequency of generating positive returns historically.

Who should invest:

• First-time Equity Investors: to experience the flavour of equity
• Investors with a 3-5 years Investment Horizon: Having a definite goal
• Investors who are near their retirement age: to earn inflation-adjusted returns

Why invest in Canara Robeco Equity Hybrid Fund?

• A good balance of equity and debt ensures better returns than a debt fund with less risk. The fund manager ensures automatic rebalancing between equity and debt as per the economic situation.

• The investor gets an equity taxation benefit, i.e., only long-term capital gains are taxed in a year above Rs. 1 L.

• With the current scenario of rising interest rates and a volatile equity market, this fund makes a case for investing.