Canara Robeco Gold Savings Fund

An Open ended Fund of Funds Scheme

Summary

Type	Open-ended gold fund of funds	Benchmark Index	Domestic Price of Gold
Min. Investment: Additional Investment:	Rs 5,000 (for lump sum) and in multiples of Rs 1 thereafter. Rs 500 (for monthly SIP, minimum 12 instalments) Rs 1000	Face Value	Rs 10 per unit
Entry Load	Nil	Exit Load *	2% is payable if units are redeemed / switched-out within 1 year from the date of allotment. No exit load is payable thereafter.
Issue Opens	June 04, 2012	Issue Closes	June 18, 2012

 

Investment Objective*

“To provide returns that closely correspond to returns provided by the Underlying scheme.” i.e by the Canara Robeco Gold EFT

 

*Source: Scheme Information Document

Is this fund for you?

Canara Robeco Gold Savings Fund (CRGSF) is the first gold fund of funds scheme from the Canara Robeco Mutual Fund. The fund will invest its corpus in Canara Robeco Gold ETF. The Fund is launched especially considering the requirements of those who want to buy gold in a paper form but do not have a Demat account. Unlike in case of ETFs, one doesn’t need to maintain any Demat account to invest in CRGSF. The fund also gives you the flexibility to invest as low as Rs 500 per month through SIP.

The fund is mandated to allocate its assets as under:

Type of Instrument	% of Net Asset	Risk Profile
Units of Canara Robeco Gold ETF	95 % - 100 %	Medium
Money Market Instruments	0 % - 5 %	Low to Medium

*Source: Scheme Information Document

 

Fund Manager Profile

The Fund will be jointly managed by Mr Akhil Mittal and Mr Kiran Shetty. Mr. Mittal is a bachelor of commerce and has to his credit Master’s Degree in Business Administration. He has a total work experience of 7 years in the field of research and fund management. Prior to joining Canara Robeco Mutual Fund; Mr. Akhil Mittal has worked with Principal PNB Mutual Fund, Edelweiss Securities and Rallis India.

Mr Shetty holds a Bachelor’s Degree in Management and has a total work experience of 6 years. Prior to joining Canara Robeco Mutual Fund, he has worked with Edelweiss Securities.

 

Fund Outlook

Launch of CRGSF has come at the time when gold prices are off from their all-time high in the international market. However in India, the gold is reaching new highs. The weakness in Rupee against US dollar reflects in the firm gold prices. The gold is providing a good hedge against the adverse rupee movement protecting the purchasing power of investors in the international markets. The fund will benefit if the gold continues its northward journey. Cross currency movement will be captured in the gold prices. If the developed world demonstrates faster growth, although it is unlikely, the gold prices would show higher resistance to move up. But if the loose monetary stance is extended in developed economies further than the gold will keep it northward march. The fund however, would disappoint investors if they enter with an expectation of earning returns that would resemble with the returns earned over last 2 years.

 

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Comments
qiaoqin.yang@usask.ca Jul 24, 2012 Hello BalajiThank you very much for visiting invtsement-mantra.in and posting your query.While investing in mutual funds ,1. Make sure you have planned goals for which you are making your invtsements.If you haven’t , make sure you do that.2. Do have a strong core portfolio consisting of quality large cap funds in place first to give your portfolio stability in long run.3. Avoid frequent churning of your portfolio on basis of under performance for few quarters.4.It will be best not to have prefixed amount in mind to invest for 15-18 years as you may need to increase your SIP amount every year accordingly to your goals you set for yourself. So do evaluate all your goals in detail (keeping inflation in mind).Next looking at your portfolio , we will still advise you to go with a pure large cap holding with one among quality funds such as ICICI Prudential Focussed Bluechip Equity or Franklin India Bluechip Fund. You can do away with DSPBR Equity in your portfolio to accommodate this fund. This fund can be part of your core holding. 20% allocationUTI Opportunities Fund 20% Go ahead and invest . Excellent fundHDFC Equity is also an excellent multi cap fund. Please go ahead and invest. 20%Balanced Fund can be added as part of diversification HDFC Prudence Fund or HDFC Balanced 10%Choose two among IDFC Premier Equity or ICICI Pru Dynamic or BSL MNC Fund or HDFC Mid cap opportunities or SBI Emerging Business (High Risk)- 15% allocation to each. Generally we have allocation to mid and small cap to not more than 20% but if you are will to take risk and are ok to ride on market volatility and your time horizon is 15-18 years , go ahead and invest.If you want to keep allocation to mid an small cap to 20% , increase allocation to balanced fund from current 10% to 20%. IDFC Premier Equity has been a steady performer. We will recommend this fund for sure.There can be different combinations for different risk profile investors but roughly try to keep 70% allocation to large cap oriented funds and balanced funds and around 20-25% allocation to quality mid cap funds. If you are willing to take bit more risk increase allocation to 30% think about few suggestions provided above and let us know in case of any queries.Be consistent with your SIP investments.Do share website with friends if you find it useful and keep visiting investment-mantra.in for more.Keep your invests simple and consistent and one you understand.Thanks Team investment-mantra.in
satamrupa@yahoo.com Jun 19, 2012 I would like to know more and to invest in Canara Rebecco Gold Mutual Funds. So, kindly contact me on 9769368860

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