CANARA ROBECO_INDIGO NFO

Introducing Canara Robeco InDiGo (INcome from Debt Instruments & Gold) Fund:

Canara Robeco InDiGo Fund is an open-end debt scheme having a primary objective to generate income from a portfolio constituted of debt & money market securities along with investments in Gold ETFs.

Investment Strategy – Canara Robeco InDiGo (INcome from Debt Instruments & Gold) Fund

• Investing in gold aimed at generating enhanced yield without taking additional duration risk or credit risk
  
  Gold as an asset class does not suffer from credit risk as it is no single person’s liability. Thus, instead of providing enhanced yield at the cost of additional duration risk (G-Sec trading) or undue credit risk, the yields of a low duration portfolio can be enhanced by investing a limited allocation into Gold.
  
• By effectively capturing the seasonal patterns in Gold, the fund aims to generate alpha
  
  Gold has displayed seasonality in its price movements. India being the largest consumer of Gold in the world, events such as Diwali and Wedding season have an impact on the Gold Prices.
  
• Fixed Income to provide accrual income and Gold to provide capital appreciation
  
  With Fixed Income & Gold being together in the portfolio, there is a blend of steady flow of Income in form of coupons coming from the fixed income securities and capital appreciation coming in from the Gold ETF investment. While there will be interim volatility due to gold prices, fixed income investment will be invested with an aim to generate high accrual income. The portfolio would aim to provide higher liquidity and low duration, similar to a short term fund.
  
  Why Canara Robeco InDiGo (INcome from Debt Instruments & Gold) Fund?
  
  The fund aims to generate additional yield from Gold investment without taking additional duration risk or credit risk on the fixed income portfolio
  
  Unique combination of Debt and Gold in one fund thereby capturing the seasonal patterns in both the asset classes to provide alpha to the portfolio. Thus, also acts as a portfolio diversifier
  Blend of accrual & capital appreciation provided in a single fund by combining Debt and Gold.
  Along with rising demand (especially Investment Demand), the supply of Gold in terms of Mine Production is descending which is further amplified due to falling supply from Central Banks.
  
  Investors who don’t have access to de-mat accounts can get exposure to Gold via this product
  The fund aims to provide regular flow of income to its investors via a quarterly dividend option. (Please note that declaration of dividend is subject to availability of distributable surplus and there is no assurance of dividend being declared every quarter.)
  
  Thanks,
  KARTIK GALA
  (Business Development)