Canara Robeco Equity Tax Saver is a tax-saving fund that enjoys deduction (up to Rs 1.5 lakh) under Section 80C of the Income Tax Act. The fund benefits from long term investing due to its lock-in period, and has a balanced portfolio of large and mid-cap stocks. It follows the ‘growth’ style of investing.
Although Canara Robeco Equity Tax Saver is a diversified fund, it has a large cap bias. It takes tactical exposure towards mid- and small-cap stocks. The fund appears to be tilted in favour of growth-oriented sectors such as banking, IT, energy and auto sectors.
We still recommend Axis Long Term Equity and ICICI Pru Tax Plan from the tax-saving basket. If you are looking for slightly conservative options, then Canara Robeco Equity Tax Saver is a good scheme to invest.
Since this fund predominantly invests in large-cap stocks, it is known to contain downfalls during steep market corrections. At the same time, its one-third exposure in quality mid-cap picks during market upturns has aided performance.
Performance
Canara Robeco Equity Tax Saver took some time to warm up to performance; however, it became a steady performer soon. During its initial years of inception (up to 2009), the fund underperformed in comparison to its category average and its respective index. Performance then picked up from 2009, and post 2009, the fund has been delivering consistent returns by outperforming its index by a good margin.
