Canara Robeco Ultra Short Term Fund

Debt

India Debt Liquid Market

Liquid

Others

Aggressive growth Investor Profile

Investor Profile

1–3 yearsInvestment Horizon

HNI, UHNI, Retail Investor, Mass AffluentTarget Segments

SEBI registered equity mutual fund suitable for all investor categoriesRegulatory Fit

Canara Robeco Ultra Short Term Fund Growth invests in short-term bonds, balancing safety with modest growth.

What This Strategy Does

Canara Robeco Ultra Short Term Fund Regular Plan Growth is an Ultra Short Duration fixed income fund which captures India's ₹10 trillion short-term debt market through active duration management, deploying capital across corporate and government bonds to achieve benchmark-aligned compounding.

CW Expert Research Notes

Resilient Downside Protection

The fund has demonstrated consistent downside protection across market cycles, outperforming its category peers in 8 out of the past 12 calendar years.

Differentiated Sector Positioning

The fund's corporate bond exposure of 61.2% and underweight to government bonds relative to peers reflects a differentiated sector positioning that seeks to capitalize on credit opportunities.

Earnings Revision Catalyst

With a valuation discount to historical averages and potential for positive earnings revisions in key holdings, the fund could benefit from an improving earnings outlook as a key catalyst.

Performance and Risk Analysis

Historical returns, volatility patterns, and how this fund has performed relative to its benchmark.

Fund Performance

-0.6% AnnuallyAlpha

+5.5% vs +9.9% benchmarkSince Inception

+6.5% vs +6.3% benchmark3Y Annualized

+5.7% vs +6.5% benchmark5Y Annualized

Canara Robeco Ultra Short Term Fund

Benchmark Index

Benchmark Performance Comparison

Canara Robeco Ultra Short Term Fund

FD Returns

Risk Profile

Standard Deviation0.4%

Sharpe Ratio0.20

Beta1.23

Upside Capture88%

Detailed Risks

Market Risk

Potential economic slowdown could trigger redemptions, impacting fund liquidity.

Liquidity Risk

Concentrated exposure to short-term debt instruments amplifies liquidity risk.

Concentration Risk

Concentrated portfolio with limited sector diversification increases idiosyncratic risks.

Specific Strategy Risk

Regulatory changes to interest rates could adversely impact fund returns.

Strategy Details

A closer look at the investment thesis, portfolio construction, and current holdings.

Core Investment Theme

Provides exposure to India's ultra-short-term fixed income market, offering stability and liquidity for cash management needs. This approach captures yield premiums over money market funds while maintaining a low-risk profile through a focus on high-quality, short-maturity debt instruments. The impact is a steady income stream with minimal volatility, suitable for investors seeking capital preservation and liquidity.

Broader Market View

Market Outlook

Equity markets appear poised for a recovery phase, with consumption and earnings normalization supporting an attractive entry point. Sectors like consumer, financials and industrials stand to benefit from reviving domestic demand and capex growth, though margin pressures and cyclicality pose risks.

Why This Strategy is Attractive Now

This strategy seems well-aligned with the current environment, offering exposure to consumer cyclicals, defensives, financials and technology. The portfolio's ~70 holdings include market leaders across these sectors, balancing growth and stability. Moderate beta and diversification suggest a risk-adjusted positioning to capitalize on the recovery.

Investment Style & Process

Investment Style

The portfolio exhibits characteristics of a Quality Growth strategy, emphasizing companies with durable competitive advantages, consistent earnings growth, and reasonable valuations relative to their growth prospects.

Why it Makes Sense

In the current environment of moderating economic growth and elevated uncertainty, a Quality Growth approach can offer a compelling combination of resilient earnings streams and attractive long-term return potential.

High-Level Investment Process

Sourcing: The strategy appears to focus on companies with strong franchises, pricing power, and sustainable competitive moats, often identified through fundamental research and industry expertise. Selection: The process suggests a preference for businesses with visible earnings growth, high returns on capital, and reasonable valuations relative to their growth prospects and quality characteristics. Construction: Portfolio construction is consistent with a focus on diversification across sectors and market capitalization segments while maintaining a bias towards quality growth opportunities.

Portfolio Holdings Overview

SectoralAllocation

Financial Services100%

Top Stock Holdings

CompanySectorAllocation

National Bank For Agriculture And Rural DevelopmentUtilities9.48%

Kotak Mahindra Prime LimitedUtilities5.29%

Rec LimitedUtilities5.27%

Small Industries Development Bank Of IndiaUtilities5.27%

Power Finance Corporation LimitedUtilities5.27%

LIC Housing Finance LtdUtilities5.23%

Export-Import Bank Of IndiaUtilities5.22%

HDFC Securities LimitedUtilities5.21%

Axis Bank LimitedUtilities5.21%

Aditya Birla Capital LtdUtilities5.21%

Fund House Management

The asset management company’s track record, AUM scale, and fund manager credentials.

Fund Manager Track Record

Avnish Jain

Mr. Avnish Jain has experience of 25 years. Manages 117 funds at Canara Robeco Asset Management Co Ltd with an AUM of approximately ₹3,894 Cr Holds a B.Tech degree.

48 years

Combined Team Experience

₹ 3,894 Cr

Assets Under Management

CW Expert Take

Canara Robeco brings banking-grade risk management to fixed income investing. Their investment philosophy emphasizes capital preservation through disciplined credit selection and duration management. The fund house leverages extensive on-ground presence for grassroots insights into credit quality and liquidity conditions. Their fixed income capabilities are complemented by quantitative risk frameworks and a focus on consistent processes.

Investment Philosophy & Approach

Disciplined Approach

Canara Robeco follows a disciplined investment approach focused on rigorous research.

Risk Management

The fund house emphasizes robust risk management practices and processes.

Long-Term Perspective

Canara Robeco maintains a long-term perspective in portfolio construction.

Operational & Regulatory Details

What it costs to invest, transaction mechanics, and regulatory disclosures you should know.

Costs and Fees

Total Expense Ratio (TER)0.8%

Regulatory & Tax Information

INF760K01DC9

ISIN

DailyDealing Frequency

CRISIL Ultra Short Dur Debt A-I TR INRBenchmark

Capital Gain Tax | Taxed as per Income Tax Slab

Tax Implications (India)