Which fund is better between Canara Robecco Equity and Quantum Long-term Equity? I would also like your opinion on IDFC Premier Equity Plan A.
-Jitendra
Answering your first question, both are good funds. But both are a little different from one another. Canara Robecco Equity Diversified has been fairly opportunistic. It has done extremely well over the past 4 years and generated nice returns, but it is not following a very well articulated principle. Compared to that, Quantum Long Term Equity has 1 per cent lower expense. That apart, it has a very well-knit portfolio of proven companies, which has so far not exceeded 25 stocks. Both funds are different and both have produced similar returns. If both do just as well over a long period of time, Quantum Long Term Equity will generate superior returns simply because it has nearly a 1 per cent cost advantage on an annual basis.
Coming to your second question, IDFC Premier Equity Plan A had done very well till about 3 months back. But now the market decline has taken its toll on it. This fund has a very unusual portfolio, it tries to spot some theme and tries to capitalize on that. The fund was able to withstand the market decline much better till about 2 months back, but now it has crumbled to some extent. We still believe in the fund, even though it is vulnerable to mid- and small-cap stocks. If they do poorly, the fund will suffer. It can also suffer if there is a change in its fund manager leaves. These are the things to keep in mind about this fund.
This article was originally published on January 20, 2012.
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