Canara Robeco Consumer Trends Fund turns 15 and delivers a compound annual growth rate (CAGR) of 17.62% since inception

Robeco de Canara Consumer Trends Fund, an open-ended equity fund thematic background Investing in companies that benefit from the growing consumer demand in India and follow a consumer and finance theme, it has completed 15 years of existence in the market.

Over the past 15 years, the fund has delivered a compound annual growth rate (CAGR) of 17.62% as against 13.54% for the benchmark (BSE 100 TRI). Over the past five years, the scheme has delivered a CAGR of 24.46%. Over the past three years and one year, the scheme has returned 20.63% and 43.17% respectively.

A one-time investment of Rs 10,000 made in the fund at the start would have grown to Rs 1.13 lakh by August 30, 2024. The value of the same Rs 10,000 would have been Rs 29,000 over the past five years.

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“Based on the themes of population and consumption, and as per an analysis by Boston Consulting Group, the share of elite and affluent households could touch 40% by 2025. As a fund manager that has crossed an AUM of Rs 1 lakh crore, we are happy to see the confidence of investors not just in us but also in the nation at large. We continue to play on the theme of consumption and finance with the belief that with an increase in population and income growth, there could be an increase in spending,” said Rajnish Narula, MD & CEO, Canara Robeco Mutual Fund.

“We expect our Consumer Trends Fund to benefit from the demographic advantage of ‘Young India’ over the next decade and the rapid urbanisation and evolution of cities. We also expect a turnaround in the business cycle leading to rising employment which will boost discretionary consumption and benefit the sectors in which the fund invests,” he added. The Canara Robeco Consumer Trends Fund invests 80-100% in equities and equity-related instruments of companies that directly or indirectly benefit from rising consumer demand in India. It invests 0-20% in debt and money market instruments, 0-10% in REITs/InvITs and 0-20% in other equity and equity-related instruments. Also Read | Looking for an investment with strategic asset selection? These investment funds offer a 14% return in 3 months

“India is a consumption-driven economy and with a growing working-age population, consumption looks set to sustain over a long period of time. The Canara Robeco Consumer Trends Fund follows the growth investment style. The fund invests primarily in companies that directly or indirectly seek to benefit from aspirational consumption and financial penetration. The fund is designed to provide capital appreciation over a longer period for investors who are confident in India’s consumer and financial story. As of August 30, 2024, it has a concentrated portfolio of 45 stocks. The top four sectors are Retail, Finance, Banking and Consumer Durables, which constitute 41% of the entire portfolio,” he said. Shridatta BhandwaldarDirector of Equities, Canara Robeco Mutual Fund.

The benchmark of the fund is BSE 100 TRI. The inception date of the fund is September 14, 2009. The fund has an AUM of Rs 1,759.96 crore as on August 30, 2024. The fund is managed by Shridatta Bhandwaldar and Ennette Fernandes.

“Being a young nation, trends in India are constantly changing, giving a boost to innovation, new products and services. A consumer fund is a gateway for investors to participate in India’s growth story. A certain portion of investment in this thematic strategy, over a long-term period, could give investors an opportunity to contribute to the evolution of the Indian economy. With so much positivity in the consumer space, we are happy that the Canara Robeco Consumer Trends Fund has been around for a decade and a half. We believe that this theme is a must-have in every investor’s portfolio to benefit from Consumption in India. We have received investments in this fund from most regions in India thanks to the persistent efforts of our distributors and investors,” said Gaurav Goyal, National Head – Sales & Marketing, Canara Robeco Mutual Fund, on achieving this milestone.