Intended investors are eyeing focused funds, which can be included in their portfolios to achieve alpha returns. To adopt this strategy, they can think of investing in Robeco Focused Equity Fund. This fund house has a good track record of all schemes.
Retail investors who stay away from stock volatility and risk should invest in low risk products such as index funds, largecap funds and dynamic asset allocation funds.
Canara Robeco’s Focused Equity Fund will invest in 25-30 stocks across all marketcap categories. The NFO of this fund will open on 7 May. The fund manager is going to follow three standards for selecting this fund.
In the first phase, he will select companies on the basis of ROE and ROCE, after which it will be assessed whether the companies with higher stake are challenging through better earnings. The average ROE and ROCE should be more than 15 per cent.
In the end the fund manager will discover new themes, shares and sectors for which the barriers will be less. For this strategy, the fund manager will try to create the best alpha portfolio portfolio.
The market is already full of focussed funds. Financial planners believe that the NFO will benefit from their excellent performance in the equidi segment. Many existing funds of this fund house have been included in the list of top funds of its category during the last three and five years.
Neerav Karkera, head of research at Fisdom, said, “The fund selection process of this fund house is very good and they remain attached to it. Many of their schemes have performed well in many schemes, due to which they have given excellent returns.”
Many distributors have asked investors to be cautious. Anup Bhaiya, CEO of Money Honey Financial Services, said, “The top 10 stocks in foxed funds can hold 55-65 per cent of the portfolio. Performance volatility can be seen.” He advised new investors to stay away from it.
