Canara Robeco Bluechip Equity Fund Direct Plan Payout of Income Dist cum Cap Wdrl INF760K01FP6

Canara Robeco Bluechip Equity earns an Average Process Pillar rating.

The most significant contributor to the rating is the fund's strong long-term risk-adjusted performance. This can be seen in its ten-year alpha calculated relative to the category average, which suggests that the managers have shown skill in their allocation of risk. The stability of the management team also contributes to the process. Specifically, the fund has not seen a manager change in the last four years. However, the process is limited by the parent firm's five-year risk-adjusted success ratio of 27%. The measure indicates the percentage of a firm's funds that have beat their respective category's median return for the period. The parent's modest success ratio suggests that the firm could do better across its fund lineup.

This strategy has tended to hold more growth stocks than others in the Large-Cap Morningstar Category. But in terms of market capitalization, it is on par with peers. Examining additional factor exposure, this strategy has consistently had exposure to high-momentum stocks compared with Morningstar Category peers over the past few years. Momentum approaches bet that rising stocks will continue to rise and that lagging stocks will continue to lag. In recent months, the strategy was more exposed to the Momentum factor compared with its Morningstar Category peers as well. This strategy has also leaned away from the stocks of companies with high dividend or buyback yields over these years. Its preference for stocks with lower yields may well lead to a growthier portfolio. However, growth stocks court additional risks if their forecasts do not come to fruition and are often more volatile than companies with stable dividends. Similarly, in recent months, the strategy also had less exposure to the Yield factor than peers. Additionally, the strategy has constantly maintained a defensive tilt, with exposure to high-quality stocks. Though it may trail peers during an economic boom, this orientation contributes to helping it weather periods of economic stress better. In this month, the strategy also had more exposure to the Quality factor over its peers. More information on a fund and its respective category's factor exposure can be found in the Factor Profile module within the Portfolio section.

The portfolio is overweight in healthcare by 2.9 percentage points in terms of assets compared with the category average, and its consumer cyclical allocation is similar to the category. The sectors with low exposure compared with category peers are energy and basic materials, with energy underweighting the average portfolio by 3.2 percentage points of assets and basic materials similar to the average. The portfolio is positioned across 61 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 45.7% of the fund’s assets were concentrated in the top 10 fund holdings, compared to the category’s 51.4% average.