In this edition of the “fund performance report”, we look at Canara Robeco Flexi Cap Fund. Launched in Sep 2003, the fund has an AUM of about Rs. 7,256 Crores. We shall compare the reward and risk performance consistency of the fund with respect to Nifty 500 TRI and Nifty LargeMidcap 250 TRI. The fund was earlier known as Canara Robeco Equity Diversified Fund.
Disclaimer: Fund performance reports present return and risk analysis of a fund with representative benchmarks and not investment recommendations. It must be expressly understood that the data below reflect only past performance and is in no way an indication of future performance. Our investment recommendations can be found here: Handpicked List of Mutual Funds (PlumbLine).
As we can see from the market cap allocation history of the fund, it has had a fairly stable large-cap oriented portfolio although it has had the freedom to change it at will.
We will use three metrics to analyze performance consistency versus benchmarks. Analysis such as this can be found for 350+ equity funds in our monthly mutual fund screener.
Note: NIfty 500, NIfty 200 or NIfty 100 are only market cap-weighted. The Nifty LargeMidcap 250 index has 50% of large caps and 50% of midcaps in addition to being market cap-weighted.
1 Rolling return outperformance consistency: the fund returns are compared with category benchmark returns over every possible 3Y,4Y, 5Y period. Higher the outperformance consistency, the better. Suppose 876 fund returns were compared with 876 benchmark returns, and the fund has beaten the benchmark 675 times. The consistency score will be 675/876 ~ 77%.
Three Years
| Metric | Nifty Largemidcap 250 TRI | Nifty 500 TRI |
| No of rolling return entries Index (3 Years) | 1541 | 1545 |
| No of rolling return entries Fund (3 years) | 1541 | 1545 |
| No of times the fund has outperformed the index (3 years) | 784 | 817 |
| rolling return outperformance Consistency Score (3 years) | 51% | 53% |
Four years
| Metric | Nifty Largemidcap 250 TRI | Nifty 500 TRI |
| No of rolling return entries Index (4 Years) | 1293 | 1297 |
| No of rolling return entries Fund (4 years) | 1293 | 1297 |
| No of times the fund has outperformed the index (4 years) | 620 | 691 |
| rolling return outperformance Consistency Score (4 years) | 48% | 53% |
Five years
| Metric | Nifty Largemidcap 250 TRI | Nifty 500 TRI |
| No of rolling return entries Index (5 Years) | 1047 | 1050 |
| No of rolling return entries Fund (5 years) | 1047 | 1050 |
| No of times the fund has outperformed the index (5 years) | 536 | 795 |
| rolling return outperformance Consistency Score (5 years) | 51% | 76% |
That is just about “coin toss” (50-50) consistency. Considering the fund’s market cap allocation history, perhaps the NIfty 500 is a better benchmark, but even here the consistency over 3Y and 4Y is not great. This means investors will have to keep the faith with the fund manager for at least 5Y or more.
We can see this from the trailing returns as well.
| Metric | Nifty 500 TRI | Trailing Fund Return 1Y |
| 1Y | 24% | 22.37% |
| 2Y | 45% | 39.10% |
| 3Y | 18% | 20.43% |
| 4Y | 15% | 17.65% |
| 5Y | 15% | 17.26% |
| Metric | Trailing Nifty LargeMidcap250 Returns | Trailing Fund Return 1Y |
| 1Y | 24.21% | 22.69% |
| 2Y | 51.68% | 42.11% |
| 3Y | 19.58% | 20.30% |
| 4Y | 15.41% | 18.10% |
| 5Y | 15.76% | 17.54% |
The results against the two benchmarks were computed a few days apart and hence the difference in the fund returns.
2 Upside performance consistency over every possible 3Y,4Y, 5Y: Higher the better. A score of 70% means, 7 out of 10 times, the fund performed better than the category benchmark when the benchmark was moving up. This is a measure of reward. It is computed from rolling upside capture data (see link below).
| Metric | Nifty Largemidcap 250 TRI | Nifty 500 TRI |
| upside performance consistency (3 years) | 49% | 72% |
| upside performance consistency (4 years) | 53% | 80% |
| upside performance consistency (5 years) | 46% | 90% |
The fund typically does better than the NIfty 500 when the index moves up. This is not the case with Nifty LargeMidcap250 TRI.
3 Downside performance consistency over every possible 3Y,4Y, 5Y. Higher, the better. A score of 60% means, 6 out of 10 times, the fund performed better than the category benchmark when the benchmark was moving down. This is a measure of risk protection. It is computed from rolling downside capture data. Read more: An introduction to Downside and Upside Capture Ratios.
| Metric | Nifty Largemidcap 250 TRI | Nifty 500 TRI |
| downside protection consistency (3 years) | 92% | 83% |
| downside protection consistency (4 years) | 97% | 94% |
| downside protection consistency (5 years) | 100% | 98% |
The fund tends to fall less than both benchmarks when they are falling but this alone without consistent performance does not mean much.
In summary, Canara Robeco Flexi Cap Fund is just about an average performer suitable for those who prefer a “quiet fund” (away from the limelight) willing to bet that it will beat the Nifty 500 over about 5Y or more.
Explore the site! Search among our 2000+ articles for information and insight!
About The Author
Dr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation for promoting unbiased, commission-free investment advice.Use our Robo-advisory Excel Template for a start-to-finish financial plan! Now with a new demo video! ⇐ More than 1000 investors and advisors use this!
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! ⇐ More than 2800 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free! One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course! Increase your income by getting people to pay for your skills! ⇐ More than 675 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!
My new book for kids: “Chinchu gets a superpower!” is now available!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish mutual fund screeners and momentum, low volatility stock screeners .every month.
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
- Twitter @freefincal
- Subscribe to our Youtube Videos
- Posts feed via Feedburner.
Our publications
You Can Be Rich Too with Goal-Based Investing
Published by CNBC TV18, this book is meant to help you ask the right questions, seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now. It is also available in Kindle format.Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want
This book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.Your Ultimate Guide to Travel
This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)Free android apps
- All calculators from our book, “You can be Rich Too” are now available on Google Play!
- Install the Financial Freedom App! (Google Play Store)
- Install Freefincal Retirement Planner App! (Google Play Store)
- Find out if you have enough to say "goodbye" to your employer (Google Play Store)