Canara Robeco AMC expects its asset under management to touch ₹1-lakh crore in March from ₹80,000 crore as of December-end on the back of buoyancy in equity market and increased fund flow.
Rajnish Narula, CEO, Canara Robeco Mutual Fund, said the industry is poised for a steady growth for the next five years given the overall bullish sentiment in the equity market and enabling government policies that has ensured all the segment of economy participate in India’s $5 trillion GDP target.
The current steady inflows in mutual funds is a reflection of investors’ faith in the industry and Canara Robeco will hit the milestone of achieving ₹1 lakh crore-mark by end of this March, he said at the event to launch the new fund offer on manufacturing.
Canara Robeco Manufacturing Fund attempts to capitalise on India’s potential to become the next manufacturing hub. The thematic fund will have a portfolio of 40-60 stocks from shortlisted 227 stocks. The fund will be benchmarked to S&P BSE India Manufacturing TRI. It will open for investment on March 1.
Bullish on manufacturing
Besides financials, mutual funds are bullish on manufacturing as a favourite theme. Currently, there are about nine thematic funds with cumulative asset under management of ₹9,000 crore.
Narula said the fund will be suitable for established investors because of the thriving domestic demand, favourable policy reforms, robust and deleveraged corporate balance sheet and a stable political environment. India seems to be well positioned to become an attractive investment destination.
Shridatta Bhandwaldar, Head Equities, Canara Robeco said factors such as a large and growing domestic market, favourable government policies, fiscal support for capex, de-leveraged corporate balance sheets and global supply chain are allowing Indian manufacturers to participate in export value chain.
The fund will adopt a growth strategy aiming to capitalise on manufacturing trends and opportunities, investing across relevant sectors, representing the manufacturing theme, he said.