Canara Robeco Yield Advantage Fund Open ended Debt Scheme

This product is suitable for investors who are seeking*:

Income/ Capital appreciation over medium term to long term

Investment in a wide range of debt securities and Money Market Instruments of various maturities and risk profile and a small portion of investment in equity and Equity Related Instruments

Medium risk(Yellow)

Current Scenario:

Position of Equity & Fixed Income Markets: Opportunities in Uncertain Times

The short and medium term rates are trading at attractive levels on account of tight liquidity conditions and recent measures taken by the Reserve Bank of India to control speculation in Rupee 

The present market conditions wherein 12 months CD yields are trading at high levels, provide a pleasant investment case for the accrual strategy on the debt side

Indian equity markets have fallen over 8% in absolute term since year to date, in terms of P/E they are trading at attractive valuations

The 1 year forward P/E of Sensex as on Aug -13 is at 13.24, which is lower than the Long term Average of 15. So equity market continues to be attractive from valuation perspective

Is there a fund which endeavours to captures the current high yields??

Presenting Canara Robeco Yield Advantage Fund: Key Features

• Blend of fixed income & equity investments endeavours to generate regular income without compromising on the quality of the portfolio

• Equity exposure is restricted to 10% of assets and is actively managed with an aim to boost returns of the overall portfolio

• Suitable for investors with moderate risk appetite along with an objective of having regular flow of income from their investments

• It can be looked at as, the first step towards investment in Hybrid Funds for Conservative Investors

INR at an all time low with respect to USD

10 year Benchmark

G Sec at 2008 levels

GDP Slowdown High Current Account Deficit

Uncertainity in Equity & Fixed

Income Markets

Note: Risk is represented as: (BLUE) investors understand that their principal will be at low risk (YELLOW) investors understand that their principal will be at medium risk (BROWN) investors understand that their principal will be at high risk

10.71

9.13

8.2

Long term average of 15

Source: MOSL, Bloomberg CD rates are 12 m PSU CD rates taken till 19th Aug ‘13

*Investors should consult their financial advisers if in doubt about whether the product is suitable

Investment Strategy:

Fixed Income Investment Strategy

• Focus is on generating High Accrual Income from a major portion of the portfolio by primarily investing in high-quality papers as well as generating alpha by actively managing the remaining debt portion

• The portfolio has a large portion of its investments in P1+/AAA rated paper

Equity Investment Strategy

• Focus is on investing in “best in class” Indian companies with sustainable business models to gain from the India growth story

• With an emphasis on safety, the portfolio has a large portion of its investments in Large Cap companies with few high conviction mid cap companies

Why Invest in Canara Robeco Yield Advantage • The fund is defensive in nature with overriding bias towards large market capitalization stocks

• Blend of Debt and Equity with an aim to render stability and liquidity to the portfolio

• An ideal investment option for a Medium to Long term horizon for conservative investors

• Investment in Highly rated instruments aims at reducing credit risk to the portfolio

Fund Features

Investment Objective

The Investment Objective of the fund is to generate regular income by investing in a wide range of debt securities and Money Market Instruments of various maturities and risk profile and a small portion of investment in Equity and Equity Related Instruments. However, there can be no assurance that the investment objective of the Scheme will be realized.

Type/Category

An Open Ended Debt Scheme

Asset Allocation

Indian Debt and Money Market Instruments: 90%-100% Equity & Equity Related Instruments: 0-10%

Inception Date

1-April-2011

Benchmark

CRISIL MIP Blended Fund Index

Plan & Options

Regular Plan- Growth Option Regular Plan- Monthly Dividend Payout/Reinvestment Regular Plan- Quarterly Dividend Payout/Reinvestment Direct Plan- Growth Option Direct Plan- Monthly Dividend Payout/Reinvestment Direct Plan- Quarterly Dividend Payout/Reinvestment

Fund Manager

Mr. Ravi Gopalakrishnan & Ms.Suman Prasad

Minimum Application Amount

Lump Sum: Rs. 5000 in multiples of Rs. 1 thereafter Subsequent purchases: Minimum amount of Rs. 1000.00 and multiples of Re. 1.00 thereafter SIP/STP/SWP: For Monthly Frequency - Rs. 1000 and in multiples of Rs. 1 thereafter. For Quarterly Frequency - Rs.2000 and in multiples Of Rs. 1 thereafter.

Load (Lump sum / SIP)

Entry Load: Nil Exit Load: 1% -if redeemed/switched-out in less than or equal to 1 year from the date of allotment. Nil - if redeemed or switched out after 1 year from the date of allotment

Mutual Fund investments are subject to market risk, read all Scheme related documents carefully