Canara Robeco Bluechip Equity Fund Regular Plan Growth INF760K01AR3

Canara Robeco Bluechip Equity earns an Average Process Pillar rating.

The leading factor in the rating is the fund's excellent 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 size of the portfolio management team also strengthens the process. With two portfolio managers, the fund is reasonably well-resourced. However, the process is limited by the parent firm's five-year risk-adjusted success ratio of 40%. 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 relatively low 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 size exposure, it is similar to the average. 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 is based on the premise that market outperformers will continue to outperform, and laggards will continue to lag. This means that managers are overweighting stocks currently on a winning streak. 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. This is demonstrated by the portfolio's low exposure to dividends or buybacks. While companies with high yields provide consistent income payments, they may cut payouts if their earnings fall. Similarly, in recent months, the strategy also had less exposure to the Yield factor than peers. In addition, this strategy has favored high-quality stocks compared to peers over the years, which could be a good option for downside risk protection. Such holdings could cause it to trail peers during economic booms, but help it better withstand busts. 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 2.7 percentage points in terms of assets compared with the category average, and its industrials 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 2.9 percentage points of assets and basic materials similar to the average. The portfolio is positioned across 59 holdings and its assets are more dispersed than the typical peer in the category. In the most recent disclosure, 46.2% of the fund’s assets were concentrated in the top 10 fund holdings, as opposed to the category average's 51.5%. And finally, in terms of portfolio turnover, looking at year-over-year movements, 21% of the fund's holdings have changed, whether through increasing, decreasing, or changing a position.