NFO Pick – (Canara Robeco Multi Asset Allocation Fund)

8 May 2025 , 12:44 PM

WHY INVESTORS MUST LOOK AT CANARA ROBECO MAAF

There are several reasons for investors to opt for the multiple benefits of Canara Robeco Multi Asset Allocation Fund.

• The multi asset allocation fund offers diversification across multiple assets like equity, debt, arbitrage, gold, REITs, silver etc; giving a holistic meaning to diversification.
• These funds mix equity, arbitrage and precious metals and allow different asset classes to balance out the risks of the other; thus, enhancing risk-adjusted returns.
• For the investor, this is a simple off-the-shelf product where a single entry point can be used to gain exposure to equities, bonds, precious metals, and REITs.
• Churning across assets has tax implications. However, when the multi-asset allocation fund churns, investors do not bear the churning tax costs, making it more efficient.
• It gives the fund manager the flexibility to tweak the asset mix according to the changing market economics and their view on asset returns.

Let us look at how multi-cap fund have performed in India.

QUICK NOTE ON PERFORMANCE OF MULTI-CAP FUNDS IN INDIA

Here is the ranking of multi-cap funds on launch returns. We have considered regular plans, since selection of MAAF requires expert guidance. Multi asset allocation funds are of recent origin and hence, there are limited number of funds even with a 3 year legacy. The funds are ranked based on returns since inception, where period can vary.

Scheme Name	Return (%) 1Y-Reg	Return (%) 3Y-Reg	Return (%) Launch	Daily AUM (₹ in Crore)
ICICI Prudential Multi-Asset Fund	12.10	18.64	21.02	57,484.51
DSP Multi Asset Allocation Fund	12.80	N.A.	18.02	2,950.33
WhiteOak Capital MAAF	16.13	N.A.	17.40	1,925.23
Tata Multi Asset Opportunities Fund	7.12	13.45	17.01	3,679.43
ABSL Multi Asset Fund	11.37	N.A.	16.74	3,944.91
Baroda BNP Paribas MAAF	8.46	N.A.	16.56	1,162.26
Nippon India MAAF	10.93	16.38	16.54	5,622.71
Kotak Multi Asset Allocation Fund	5.67	N.A.	14.97	7,771.75
Sundaram Multi Allocation Fund	11.19	N.A.	14.72	2,593.51
Mirae Asset MAAF	11.61	N.A.	12.84	1,910.56
Data Source: AMFI

Multi asset allocation fund manage around ₹1.21 Trillion in the Indian markets, but they are mostly of recent origin with one single AMC dominating nearly 50% of the AUM as can be seen from the table above. Returns on MAAF in the last few years have been largely driven by the rally in equities, since MAAFs tend to maintain over 65% in equities.

GLANCE AT THE CANARA ROBECO MULTI ASSET ALLOCATION FUND NFO

Here are key details of the Canara Robeco Multi Asset Allocation Fund NFO.

• The NFO opens on May 09, 2025 and closes on May 23, 2025. The allotment date for units will be within 15 days from the close of subscription of the NFO.
• On the risk-o-meter, Canara Robeco Multi Asset Allocation Fund is classified as “Very High Risk Fund,” due to its predominant exposure to equities and to other risky asset classes like gold, silver, REITs etc.
• Investment objective is to generate long term capital appreciation through an asset allocation approach by combining equities with debt, gold, silver, REITs etc. Equity allocation will be more than 65% for retaining equity fund definition.
• There is no entry load. Redemption up to 12% of Investment does not entail exit load. For the balance units, exit load of 1% of redemption value will be levied if the fund is redeemed within 365 days from the date of allotment of units.
• Canara Robeco Multi Asset Allocation Fund is an open ended fund and offers Regular and Direct plans. Additionally, the fund also offers the Growth option and the IDCW option to investors.
• Minimum application amount in NFO will be ₹5,000 and additional investments have to be of ₹1,000 minimum. The fund supports SIP, STP, and SWP. Amit Kadam, Ennette Fernandes, and Kunal Jain will be the designated fund managers for the fund.
• Being a multi-cap equity fund, it is exposed to equity volatility and to additional risks of debt, gold, silver, and REITs. While long term holding of over 5-7 years is recommended, based on past experience, there are no guarantees of returns on the fund.
• Canara Robeco Multi Asset Allocation Fund, will be classified as an equity fund for tax purposes. STCG tax (less than 1 year), will be taxed at 20.8% (including surcharge). LTCG tax (1 year or more), will be taxed at 12.5%, after maximum exemption of ₹1.25 Lakhs per financial year.

Canara Robeco Multi Asset Allocation Fund focuses on asset allocation; spreading investor assets across equity, debt, gold, silver, and REITs. The allocation and rebalancing approach gives investors exposure to multiple assets, without attracting capital gains on churn.