Canara Robeco Consumer Trends Fund Delivers Impressive Returns Over 15 Years

Canara Robeco Consumer Trends Fund Delivers Impressive Returns Over 15 Years

The Canara Robeco Consumer Trends Fund, launched in September 2009, has achieved significant milestones over its 15-year journey, demonstrating robust performance in the thematic consumption sector. An investor who consistently contributed Rs 10,000 monthly through a Systematic Investment Plan (SIP) since the fund's inception has amassed approximately Rs 84.81 lakh, reflecting an impressive annualized return of 18.64%. In contrast, a one-time investment of Rs 10,000 in 2009 would have grown to about Rs 1.13 lakh by the end of August 2024.

As of August 30, 2024, the fund manages Assets Under Management (AUM) totaling Rs 1,759.96 crore. It has maintained a strong Compound Annual Growth Rate (CAGR) of 17.62% in its regular growth plan. This performance has notably outpaced benchmark indices, with the BSE 100 Total Return Index (TRI) achieving a CAGR of 13.54% and the BSE SENSEX TRI at 12.99% over the same timeframe.

The fund’s historical performance reveals that an initial investment of Rs 12 lakh has appreciated to Rs 34.52 lakh over ten years, marking an annualized return of 20.05%. Further analysis indicates that an investment of Rs 8.40 lakh has risen to Rs 18.94 lakh in seven years, representing a return of 22.85%. Similarly, amounts of Rs 6 lakh, Rs 3.60 lakh, and Rs 1.20 lakh have also yielded substantial returns in their respective time frames.

As of the latest data, the fund boasts a concentrated portfolio of 45 stocks, with a focus on sectors such as retail, finance, banking, and consumer durables, which collectively comprise 41% of the portfolio. Key holdings include ITC Ltd., Bharti Airtel Ltd., HDFC Bank Ltd., Zomato Ltd., and Trent Ltd. The fund's strategy emphasizes investment in companies that stand to gain from India's consumption-driven growth.

Rajnish Narula, Managing Director and CEO of Canara Robeco Mutual Fund, expressed confidence in the fund's future prospects, highlighting the favorable demographic trends in India, including a young population and rapid urbanization. He anticipates that these factors will drive discretionary spending and employment growth, benefiting the sectors in which the fund invests.

Investors considering entering the Canara Robeco Consumer Trends Fund can take encouragement from its impressive track record and the positive outlook for India’s consumption landscape.