Can Robeco Common Application Form

8/9/2019 Can Robeco Common Application Form

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Canara Robeco Mutual FundInvestment Manager : Canara Robeco Asset Management Co. Ltd.

Construction House, 4th Floor, 5, Walchand Hirachand Marg,Ballard Estate, Mumbai 400 001.Tel.: 6658 5000, 6658 5086 Fax: 6658 5012 / 13.www.canararobeco.com

KeyInformationMemorandumand application formOpen Ended Equity / Hybrid SchemesCanara Robeco Infrastructure Canara Robeco Equity DiversifiedCanara Robeco Balance Canara Robeco Emerging EquitiesCanara Robeco Nifty Index Canara Robeco Equity Tax Saver

Canara Robeco F.O.R.C.E Fund

Open Ended Debt / Money Market SchemesCanara Robeco Floating Rate Canara Robeco LiquidCanara Robeco Treasury Advantage Fund Canara Robeco IncomeCanara Robeco Gilt PGS Canara Robeco Dynamic Bond FundCanara Robeco Short Term Fund Canara Robeco Monthly Income Plan

This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the scheme/MutualFund, due diligence certificate by the AMC, Key Personnel, investors' rights & services, risk factors, penalties & pending litigations etc. investors should, before investment,refer to the Scheme Information Document and Statement of Additional Information available free of cost at any of the Investor Service Centres or distributors or from thewebsite: www.canararobeco.com.

The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date, and filedwith Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certified theaccuracy or adequacy of this Key Information Memorandum.

This Key Information Memorandum (KIM) dated as on 1st April, 2010.


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Canara Robeco Equity Diversified Canara Robeco Emerging EquitiesCanara Robeco Infrastructure

Type & Category : Open Ended Equity Scheme Type & Category :Open Ended Equity SchemeType & Category : Open Ended Equity Scheme

Investment Objective : To generate capitalappreciation by investing in equity and equity relatedsecurities.

Investment Objective :To generate capital appreciationby primarily investing in diversified mid cap s tocks.

Investment Objective : To generate income/capitalappreciation by investing in equities and equity relatedinstruments of companies in the infrastructure sector.

Investment Strategy: Canara Robeco Infrastructure isan open-end Scheme having a primary objective togenerate income / capital appreciation by investing inequities / equity related instruments of companies inthe infrastructure sector.The Association of Mutual Funds in India (AMFI) has laiddown classification of industries which is treated as abase list for classification of industries under theInfrastructure Sector. However, the list of industries isindicative and the AMC may add such other industries /sectors which broadly satisfy the category ofinfrastructure industries. The Indian economy has beenamong the fastest growing economies in the world. Ifthe growth rate has to be sustained over a longerperiod, the country needs huge infrastructurespending. One of the key constraints for the Indiancorporates to become globally competitive isinadequate infrastructure. Realising the urgency and

importance of infrastructure development, thegovernment has initiated a number of measures. Thegovernment has created a positive regulatory andpolicy environment like implementation of theElectricity Act, Telecom policies, etc. The country needsadditional Power, Telecom, Aviation and the Maritimesectors etc. The government is finding innovative waysof funding through Public-Private Partnershipinitiatives, imposition of cess, etc. There are goodinvestments happening in roads, seaports, airports,power, oil and gas sectors, water supply, sewerage, etc.Hence one of the key economic growth drivers today isthe huge infrastructure spending.With the spending, many companies in theinfrastructure sector stand to benefit by way ofincreased turnover and higher earnings. This presentsideal opportunities in the stock market, as the marketcapitalization of these companies will also grow in tunewith the earnings growth. The scheme is designed to

invest in shares of those companies, which hold highpotential to benefit from such infrastructure spending.The scheme will look for companies, which arereasonably valued and are having high earnings growthpotential in the infrastructure sector.

Investment Strategy: The Scheme is an open-endedscheme with an objective to generate long term capitalappreciation by primarily investing in diversified midcap stocks that have potential to emerge as the biggerCorporates with higher performance. The scheme isdesigned to invest in shares of those companies, whichhold high potential to emerge as the better performersin the future.Indian Corporates have emerged as globallycompetitive, cost conscious, profit oriented enterpriseswith the built-in capacity to exploit the globalopportunities. With such robust business model,though they are mid-sized / small sized in terms ofmarket capitalization today, they have the potential toemerge as blue chips of tomorrow. The dynamicallychanging and fastest growing Indian economy isenabling entrepreneurs to capitalize on the growthopportunities. Such companies command low P/E ratio

as compared to industry P/E. When they achieve highergrowth rate, automatically the value get unlocked andconsequently the P/E ratio would improve therebyfacilitating wealth creation to the shareholders. Theyhave the potential of becoming the blue chips of themarket tomorrow. Such companies offer good scopefor investments.

Investment Strategy: The Scheme would adopt abottom-up approach to investing with an aim ofidentifying companies with strong competitive positionin good business and having quality management.Essentially, the focus would be on fundamentally strongcompanies with scope for good growth over time. Somekey factors such as Fundamentals of the business, thequality of management, the financial strength of thecompany, etc. would be considered at the time of stockselection. The AMC would incorporate adequatesafeguards for controlling risks in portfolio constructionprocess at the time of investing. Stock specific risk willbe minimized by investing only in those companies thathave been thoroughly analyzed by the AMC. The AMCwill also monitor and control maximum exposures toany one security.

Asset Under Management (31.03.2010) (INR crs) :173.79



Number of Live Folios : 39447 Number of Live Folios : 6239Number of Live Folios : 124575

Comparison with Other Schemes : Canara RobecoInfrastructure captures the opportunity created by hugegrowth in capital formation in the economy, through apredominantly large-cap oriented portfolio. The fundfollows a thematic approach towards Infrastructurewith a 'Growth' style of investing. The fund has a biastowards concentrated holdings on high convictionideas.

Comparison with Other Schemes : Canara RobecoEquity Diversified follows a predominantly bottom-upinvestment approach with a focus on fundamentallysound companies which are likely to deliver superiorcapital appreciation over the medium-term. The fundhas a predominant focus on large caps with select highconviction mid cap ideas. The fund provides a blend of'Growth' and 'Value' style of investing.

Comparison with Other Schemes : Canara RobecoEmerging Equities provides a portfolio of well diversfiedgrowth oriented companies within small and midcapuniverse. The Fund identifies stars of tommorrow withinthe segment.


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Min Max

Equity and Equity related 85 100instruments.

Money Market instruments. 0 15

Instruments % of InvestibleFunds (Indicative)


Min Max

Equity and Equity relatedinstruments of companiesin the infrastructure sector 75 100including derivatives of suchcompanies

Domestic Debt and Money 0 25Market Instruments


Min MaxMid & Small Cap equity andequity related instruments* 65 100

Equity & equity relatedinstruments of Companiesother than the above 0 35

Domestic Debt and MoneyMarket Instruments 0 35

Asset Allocation Asset AllocationAsset Allocation

Benchmark Index :BSE 200

Benchmark Index :CNX Mid Cap


Plans/ Options :Growth OptionGrowth Option with Automatic RepurchaseDividend Option - Dividend Reinvestment,

Dividend PayoutBonus Option

Plans/ Options :

Growth Option

Dividend Option - Dividend Reinvestment,

Dividend payout

Plans/ Options :Growth OptionGrowth Option with Automatic RepurchaseDividend Option - Dividend Reinvestment,

Dividend payoutBonus Option

Minimum Investment:

Lumpsum : Rs. 5000 in multiples of Rs. 1 thereafterSIP/STP : For monthly frequency - Rs. 1000 and inmultiples of Rs. 1 thereafterFor quarterly frequency - Rs. 2000 and in multiples ofRs. 1 thereafter

Minimum Investment:


Minimum Investment:


Fund Manager :Mr. Nimesh Chandan


Fund Manager :Mr. Anand Shah

*For the purpose of this Fund, Mid & Small CapCompanies are defined as those which are ranked from151 to 500 on the basis of market capitalisation. Theranking will be reviewed periodically.Exposure by the Scheme in derivative instruments forthe purpose of hedging and portfolio rebalancing shallnot exceed 30% of the Net Assets of Scheme.Investment by the Scheme in ADRs/GDRs shall notexceed 10% of the net assets of the Scheme as on thedate of such investments.The Scheme may invest in Foreign Securities up to 10%

of the net assets of the Scheme (subject to an overalllimit of 10% of the net assets of the Fund) as on 31stMarch of each relevant year of the investment.The stock lending done by the Scheme shall not exceed15% of the net assets of the Scheme as on the date ofsuch lending and that the maximum limit perintermediary shall not exceed 5% of the net assets ofthe Scheme.


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0

-50

200

150

100

50

-10031 Mar

0631 Mar

0731 Mar

0831 Mar

0931 Mar

10

0

-20

-40

120

100

80

60

20

40

-6031 Mar

0631 Mar

0731 Mar

0831 Mar

0931 Mar

10

0

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-40

100

80

60

20

40

-6031 Mar

0631 Mar

0731 Mar

0831 Mar

0931 Mar

10

YoY absolute returns Benchmark

Returns(%)

YoY absol ut e returns Be nchmark

Returns(%)

YoY absol ut e re turns Benchmark

Returns(%)

Performance of the Scheme(Growth Option)



Scheme Benchmark

Inception Date

Performance 1 year 109.66% 92.87%

Performance 3 years 20.18% 12.19%


Since inception 27.77% 23.50%

NAV on 31.03.2010 (Growth Option) Rs. 49.6900

16.9.03 16.9.03

Scheme Benchmark

Inception Date





NAV on 31.03.2010(Growth Option) Rs. 19.6200

11.3.05 11.3.05

Returns : CAGR Past performance may or may not besustained in future.



Performance PerformancePerformance


Actual Recurring Expenses for the previous financialyear ended September 30,2009 : 2.42%



Entry Load : Nil*

Exit Load :

Lumpsum / SWP :

1% - If redeemed / switched out within 1 year from thedate of allotmentNil if redeemed / switched out after 1 year from thedate of allotment

SIP/STP :

1% - if redeemed / switched out within 2 years from thedate of allotmentNil if redeemed / switched out after 2 years from thedate of allotment

* Entry Load : Nil*

Exit Load :

Lumpsum / SWP :


SIP/STP :


* Entry Load : Nil*

Exit Load :

Lumpsum / SWP :


SIP/STP :


*

Scheme Benchmark

Inception Date 2




NAV on 31.03.2010 (Growth Option) Rs. 21.3600

.12.05 2.12.05


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Canara RobecoEquity Tax Saver

Canara RobecoNifty Index

Canara Robeco Balance

Investment Objective : ELSS seeking toprovide long term capital appreciationby predominantly investing in equitiesand to facilitate the subscribers to seektax benefits as provided under Section80 C of the Income Tax Act, 1961

Investment Strategy : The Scheme aimst o a c h i e v e l o n g t e r m c a p i t a lappre c iat ion by pre domin an t lyinvesting in equities to facilitate thesubscribers to seek tax benefits asprovided under Section 80 C of theIncome Tax Act, 1961. Given the lock-infeature of the Scheme, the fundmanager is entrusted with the levy toengage in long term investing with nosudden liquidity pressures. Theinvestment emphasis of the scheme willbe in identifying companies with strongcompetitive position in good businessand having quality management. TheAMC will follow an active investment

style supported by in-house research.

Investment Strategy : Canara RobecoBalance is an open ended equity basedScheme with partial allocation to DebtInstruments. The Scheme is positionedas a lower risk alternative to a pureequities scheme, while retaining someof the upside potential from equitiesexposure. The Scheme provides theInvestment Manager with the flexibilityto shift allocations within the prescribedasset allocation brackets in the event ofa change in view regarding an assetclass.The Equity Investment philosophy wouldbottom-up stock picking with the aim toinvest in companies with strong

competitive position in good businessand having quality management.Essentially, the focus would be onfundamentally strong companies withscope for good growth over time. Somekey factors such as Fundamentals of thebusiness, the quality of management,the financial strength of the company,etc. would be considered at the time ofstock selection.On the remaining portion of theportfolio, the Scheme would investsome portion of the portfolio in MoneyMarket Instruments so as to meet thenormal repurchase requirements. Theremaining investment will be made insecurities which are either expected tobe reasonably liquid or of varyingmaturity. However, the NAV of theScheme may be affected, if the securitiesinvested in are rendered illiquid afterinvestment. In addition, the InvestmentManager will study the macro economicconditions, including the political,economic environment and factorsaffecting liquidity and interest rates.

Investment Strategy : Canara RobecoNifty Index being an index linked schemefollows passive style of managementand is subject to tracking errors. TheScheme may invest in other indicesmanaged by the AMC or in the indexschemes of any other Mutual Funds,provided it is conformity to theinvestment objectives of the Schemeand in terms of the prevailingRegulations.The Scheme will be managed passivelywith investments in stocks in aproportion that is as close as possible tothe weightage of these stocks in therespective index. The investment

strategy would revolve around reducingthe tracking error to the least possiblethrough regular rebalancing of theportfolio, taking into account thechange in weights of stocks in the index.In addition, the Investment Managerwill study the macro economicconditions, including the political,economic environment and factorsaffecting liquidity and interest rates. TheInvestment Manager would use thisanalysis to assess the likely direction ofinterest rates and position the portfolioappropriately to take advantage of thesame on the fixed income portion of theportfolio.

Investment Strategy : Canara RobecoF.O.R.C.E Fund (Financial Opportunities,Retail Consumption & EntertainmentFund) is an open-end Scheme having aprimary objective to generate income /capital appreciation by investing inequities / equity related instruments ofcompanies in the Finance, Retail &Entertainment sectors. The Schemewould aim to capture opportunitieswithin the above said sectors primarilyapart focusing on other sectors.Some Opportunities in the financialsector include - Banks Public & Private,Investment Banks, Distribution Houses,Listed asset management companies,

Insurance Companies, BrokerageHouses, etc. Opportunities in theentertainment sector include Broadcasting, Electronic and PrintMedia, Content providers, Multiplexes,etc. On the Retail Side, Organizedplayers facilitating Retail Consumptionprovide a wide array of investmentopportunities going forward.The investment emphasis of the schemewill be in identifying companies withstrong competitive position in goodb u s i n e s s a n d h a v i n g q u a l i t ymanagement. The AMC will follow anactive investment style supported by in-house research. Essentially, the focuswould be on fundamentally strongcompanies with scope for good growthover time. The AMC, in selecting thescrips will focus on the fundamentals ofthe business, the industry structure, thequality of management sensitivity toeconomic factors, the financial strengthof the company and the key earningsdrivers.

Type & Category : Open Ended EquityLinked Tax Saving Scheme

Investment Objective :income/capital appreciation byinvesting in companies whose securitiesare included in the S & P CNX Nifty.

To generate Investment Objective : The objective ofthe Fund is to provide long - term capitalappreciation by primarily investing inequity and equity related securities ofcompanies in the Finance, Retail &Entertainment sectors.

Type & Category :Linked Equity Scheme

Open Ended Nifty Type & Category :Open Ended EquityScheme

Type & Category : Open Ended BalancedScheme

Investment Objective : To seek togenerate long term capital appreciationand / or income from a portfolioconstituted of equity and equity relatedsecurities as well as fixed incomesecurities (debt and money marketsecurities)

Canara Robeco F.O.R.C.EFund

Asset Under Management (31.03.2010)(INR crs) : 164.49




Number of Live Folios : 72197 Number of Live Folios : 12129Number of Live Folios : 1942Number of Live Folios : 64216

Comparison with Other Schemes :Canara Robeco Equity Tax Saver is anELSS with a 3 year lock-in periodproviding Tax Benefits under Sec 80 C ofIncome Tax Act. The fund benefits fromlong term investing due to its lock-in andhas a balanced portfolio of large andmid cap stocks with a 'Growth' style ofinvesting.

Comparison with Other Schemes :Canara Robeco Balance aims tog e n e r a t i n g l o n g - t e r m c a p i t a lappreciation through a prudent mix ofequity and debt portfolio, suitable forthe average investor as it takes away theburden of focusing on asset allocationbetween equity & debt. The fund investsin a careful blend of select stocks anddebt securities which effectively spreadsthe risk.

Comparison with Other Schemes :Canara Robeco Nifty Index is an indexfund following passive style of investingby tracking S&P Nifty.

Comparison with Other Schemes :Canara Robeco FORCE Fund is an openended thematic fund predominantlyinvesting in 3 sectors benefitting fromthe rising and stable domestic demandi . e . F i n a n c i a l S e r v i c e s , R e t a i lC o n s u m p t i o n a n d M e d i a &Entertainment. The fund will also lookfor opportunity to invest in few othercompanies which benefit from thistheme not covered in the sectorsmentioned above. The fund will invest instocks across the Market Capitalisationrange and will look to follow 'Growth'style of investing.


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Canara Robeco Balance Canara Robeco F.O.R.C.EFund


Asset Allocation Asset Allocation


Min MaxEquity and Equityrelated 80 100Instruments.Money Market

instruments. 0 20


Min MaxEquity and Equityrelated 40 75instruments

Debt Securities

includingSecuritized debthavingrating above AA or 25 60equivalent,MoneyMarketInstruments, Govt.Securities

Asset Allocation


Min MaxEquities covered bythe Nifty in thesamepercentage

weightage as inthe Nifty (including 90 100Exchange TradedEquity Derivativeson theS&P CNX Nifty).

Money MarketInstruments 0 10including CallMoney.

Asset Allocation


Min Max# Equity and equityrelated instrumentsof companies in theFinance, Retail &

Entertainmentsector 65 100

Other Equity andequity relatedinstruments 0 35

Domestic Debt andMoney Marketinstruments(Includingsecuritised debt upto 10% of net assets) 0 35

# The scheme shall invest minimum 40%and maximum 65% in Finance Sector,minimum 15% and maximum 35% inEntertainment sector and minimum 10%and maximum 25% in Retail sector.

Exposure by the Scheme in derivativeinstruments for the purpose of hedgingand portfolio rebalancing shall notexceed 30% of the total Net Assets ofScheme.

nInvestment by the Scheme inADRs/GDRs shall not exceed 10% ofthe net assets of the Scheme as onthe date of such investments.

nThe Scheme may invest in ForeignSecurities up to 10% of the netassets of the Scheme (subject to anoverall limit of 10% of the net assetsof the Fund) as on 31st March ofe a c h r e l e v a n t y e a r o f t h einvestment.

nThe stock lending done by the

Scheme (if any) shall not exceed25% of the net assets of the Schemeas on the date of such lending.

The scheme shall not make anyinvestments in foreign securitized debt.


Plans/ Options :Growth Option

Dividend Option - DividendReinvestment

- Dividend payout



- Dividend payout



- Dividend payout

Plans/ Options :Retail Plan :Growth OptionGrowth option with automatic repurchase

Dividend Option - Dividend Reinvestment

- Dividend payout

Institutional Plan :Growth OptionGrowth option with automatic repurchase

Dividend Option - Dividend Reinvestment

- Dividend payout

Minimum Investment:Lumpsum : Rs. 500 in multiples of Rs. 1thereafterSIP/STP : For monthly frequency - Rs.500 and in multiples of Rs. 1 thereafterFor quarterly frequency - Rs. 1000 andin multiples of Rs. 1 thereafter

Benchmark Index :S & P CNX Nifty

Benchmark Index :S & P CNX Nifty

Benchmark Index :Crisil Balanced Fund Index

Minimum Investment: Lumpsum : Rs.5000 in multiples of Rs. 1 thereafter.NRI/FII/OCBs : Rs.50,000 & in multiplesof Rs.1,000. Corporates/Trusts &Institutional Investors : Rs.50,000 & inmultiples of Rs.10,000SIP/STP : For monthly frequency - Rs.1000 and in multiples of Rs. 1 thereafter.For quarterly frequency - Rs. 2000 and inmultiples of Rs. 1 thereafter

Minimum Investment:Lumpsum : Rs. 5000 in multiples of Rs. 1thereafterSIP/STP : For monthly frequency - Rs.1000 and in multiples of Rs. 1 thereafterFor quarterly frequency - Rs. 2000 and inmultiples of Rs. 1 thereafter

Minimum Investment:Retail Plan : Rs.5,000.00 and multiples of Re.1.00thereafter. Subsequent purchases:Minimum amount of Rs. 500.00 andmultiples of Re. 1.00 thereafter.Institutional Plan :Rs. 5,00,00,000.00(Rs. 5 cr) andmultiples of Re. 1 thereafter. Subsequentpurchases: Minimum amount ofRs.5,00,000.00 (Rs Five Lakhs) andmultiples of Re.1.00 thereafter.


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0

2

14

12

10

8

6

4

16

Since Inception

0

-40

-20

100

80

40

20

60

31 Mar06

31 Mar07

31 Mar08

31 Mar09

31 Mar10

YoY absol ute ret urns BenchmarkYoY absolute returns Benchmark YoY absolute returns Benchmark

Returns(%)

Returns(%)

Returns(%)

Returns(%)

(Note : Scheme has been not completed 1 year)BenchmarkAbsolute Returns





0

-40

-20

120100

80

60

20

40

-6031 Mar

0631 Mar

0731 Mar

0831 Mar

0931 Mar

10

0

-40

-20

80

60

20

40

31 Jan06

31 Jan07

31 Jan08

30 Jan09

29 Jan10

Performance

Scheme Benchmark

Inception Date 31.3.93 1.1.90


Performance 3 years22.86% 12.16%




NAV on 31.03.2010(Growth Option)Rs. 23.3300

Performance

Scheme Benchmark





Performance 10 years17.58% -

Since inception 10.42% -


Performance Performance

Returns : CAGR Past performance mayor may not be sustained in future.




Canara Robeco Balance Canara Robeco F.O.R.C.EFund


Entry Load : NilExit Load : For all investment

amountsLump Sum/SIP/STP : Nil

** Entry Load :Exit Load : Lumpsum / SWP / SIP/STP :1% - If redeemed / switched out within 1year from the date of a llotment, Nil ifredeemed / switched out after 1 year

from the date of allotment

Nil

Actual Recurring Expenses for thepre v iou s f in an c ia l ye ar e n de dSeptember 30,2009 : 1.00%



Actual Recurring Expenses for theprevious financial year ended September30,2009 : 2.50%

Entry Load : Nil*

Exit Load :

Lumpsum / SWP :1% - If redeemed / switched out within1 year from the date of allotment

Nil if redeemed / switched out after1 year from the date of allotment

SIP/STP :

1% - if redeemed / switched out within2 years from the date of allotmentNil if redeemed / switched out after2 years from the date of allotment

* Entry Load : Nil*

Exit Load :

Lumpsum / SWP / SIP/ STP :1% - If redeemed / switched out within1 year from the date of allotment

Nil if redeemed / switched out after1 year from the date of allotment

*

Returns : Absolute Past performancemay or may not be sustained in future.

Scheme Benchmark







Scheme Benchmark






Fund Manager :Mr. Nimesh Chandan / Mr. Akhil Mittal


Minimum Investment:SIP/STP : For monthly frequency - Rs.1000 and in multiples of Rs. 1 thereafterFor quarterly frequency - Rs. 2000 and inmultiples of Rs. 1 thereafter


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Type & Category : Open Ended CashManagement Scheme

Investment Objective : To enhance theincome, while maintaining a level ofliquidity through, investment in a mix ofMMI & Debt securities.

Type & Category : Open Ended DebtScheme


Investment Objective : To generateincome/capital appreciation through alow risk strategy by investment in DebtS e c u r i t i e s a n d M o n e y M a r k e tInstruments.


Investment Objective : To generateIncome by investing in Debt instruments,MMI and small portion in equity.

Investment Objective : To generateincome as well as capital appreciation bymitigating interest rate risk throughinvestment in Floating and Fixed RateDebt Instruments.

Investment Strategy : In Canara RobecoLiquid the funds will be invested in MoneyMarket Instruments (with un-expiredmaturity less than 91 days) offeringreasonable liquidity and returns, with riskperceived by the Investment Managerand a portion of the funds will also beinvested in rated and un-rated corporatebonds and debentures.

Investment Strategy : In Canara RobecoLiquid the funds will be invested in MoneyMarket Instruments (with un-expiredmaturity less than 91 days) offeringreasonable liquidity and returns, with riskperceived by the Investment Managerand a portion of the funds will also beinvested in rated and un-rated corporatebonds and debentures.

Investment Strategy : The Scheme willinvest primarily in Debt and Moneymarket instruments with an objective togenerate regular returns. The secondaryobjective of the Scheme is to generatelong-term capital appreciation byinvesting a portion of the Scheme'sassets in equity and equity relatedinstruments.The funds will be invested in debt andmoney market securities of differentmaturities and risk profiles. Theinvestments may be made in primary aswell as secondary markets. As far aspossible, the portfolio will be adequatelydiversified to reduce the risk ofunderperformance, arising out ofunexpected security-specific factors.Investments will be made in State /

Central Government Securities, TreasuryBills : i) supported by the ability to borrowfrom the Treasury ii) supported bysovereign guarantee or of the StateGovernment iii) supported by theGovernment of India / State Governmentin any other manner.The Scheme being open ended, someportion of the portfolio may be investedin Money Market Instruments so as tom e e t t h e n o r m a l r e p u r c h a s erequirements. The remaining investmentwill be made in securities which areeither expected to be reasonably liquid orof varying maturity. However, the NAV ofthe Schemes may be affected, if thesecurities invested in are renderedilliquid after investment. The InvestmentManager targets to identify securities

which offer optimum level of yield atlower level of risks. Rated debtinstruments in which the Scheme investswill be of investment grade as rated bythe credit rating agency. In addition, theInvestment Manager will monitor themacro economic conditions, includingthe political, economic environment andfactors affecting liquidity and interestrates.The Equity Investment philosophy wouldbe bottom-up stock picking with the aimto invest in companies with strongcompetitive position in good businessand having quality management.Essentially, the focus would be onfundamentally strong companies withscope for good growth over time.

Investment Strategy : The focus of theScheme is to achieve the investmentobjective through investments incombination of debt and money marketinstruments having varied yield andmaturity profile. The Scheme ispositioned as an intervening investmentavenue between long-term debt schemeand short term liquid scheme. Apart frominvestment restrictions under SEBI (MF)Regulations, the Fund does not presentlyintend to follow any internal norms vis-a-vis limiting exposure to a particularsecurity or sector etc. However, the Fundmay consider imposing any restrictionsdepending on the changes in theinvestment environment from time totime.The fund will be invested in debt and

money market securities of differentmaturity and r isk prof i les. Theinvestments may be made in primary aswell as secondary markets. As far aspossible, the portfolio will be adequatelydiversified to reduce the risk of under-performance arising out of unexpectedsecurity-specific factors. Investments willbe made in State / Central GovernmentSecurities, Treasury Bills : i) supported bythe ability to borrow from the Treasury ii)supported by sovereign guarantee or ofthe Statement Government, i i i )supported by the Government of India /State Government in any other manner.The Scheme will seek to underwriteissuance of Government Securities if any,to the extent permitted by SEBI/RBI,subject to the prevailing rules and

regulations specified in this respect. TheScheme may also participate in theirauction from time to time. In addition,the Investment Manager will study themacro economic conditions, includingpolitical, economic environment andfactors affecting liquidity and interestrates. The Investment Manager woulduse this analysis to assess the likelydirection of interest rates and positionthe portfolio appropriately to takeadvantage of the same.

Canara Robeco LiquidCanara Robeco FloatingRate - Short Term Plan

Canara Robeco TreasuryAdvantage Fund

Canara RobecoMonthly Income Plan


Asset Under Management (31.03.2010)(INR crs) :199.90



Number of Live Folios : 548 Number of Live Folios : 6116Number of Live Folios : 981Number of Live Folios : 600

Comparison with Other Schemes :Canara Robeco Floating Rate offers aninvestment option with mix of fixed andfloating rate instruments in its portfolio.The fund is similar to a money marketfund and is less sensitive to interest ratefluctuations.

Comparison with Other Schemes :Canara Robeco Liquid invests in onlyshort-term money market instrumentswith an aim to generate higher returnthan the risk free rate of return andensuring liquidity at all the time. The fundis suitable for investments with very shortterm horizon & to park surplus moneys.

Comparison with Other Schemes :Canara Robeco Treasury Advantage Fundseeks to provide consistent income andliquidity through investments madeprimarily in money market and debtsecurities following a low risk strategy.The portfolio duration of the fund tendsto b slightly higher than a liquid fund.

Comparison with Other Schemes :Canara Robeco Monthly Income Plan is adebt oriented hybrid fund which aims togenerate consistent income and stableperformance with a small participationto equity investments.


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Benchmark Index :Index

Crisil Liquid FundBenchmark Index :Index

Crisil Liquid Fund


Min Max

Floating Rate Debt,Money MarketInstruments and 65 100DerivativeInstruments

Fixed Rate Debtand Derivatives 0 35Instruments


Min MaxMMI/Call/DebtInstruments withresidual average 20 100maturity of equal orless than one year.

Debt Instrumentswith residualaverage maturityof more than one 0 80year (InclSecuritised Debt)


Crisil Liquid Fund


Min MaxDebt (includingsecuritized Debt 75 90with MMI)Equity and Equityrelated 10 25

instruments

Plans/ Options :Growth OptionGrowth Option withAutomatic RepurchaseDividend OptionMonthly Div Payout/Reinvest.Quarterly Div Payout/Reinvest.


Crisil MIP Blended


Min Max

Money MarketInstruments / 65 100Call Money

Debt (Including 0 35

Securitised Debt)

Plans/ Options :Short Term Plan :Growth,Dividend Option - Weekly DividendReinvestment,Daily Dividend Reinvestment

Asset Allocation Asset AllocationAsset AllocationAsset Allocation

Plans / Options : Retail Plan :Growth Option , Dividend Option :Daily Divi. Reinvestment, Weekly Divi.Reinvestment, Fortnightly Divi.Reinvestment, Monthly Div.Reinvestment.Institutional Plan : Growth Option,Dividend Option : Daily Dividend

Reinvestment, Weekly DividendReinvestment,Fortnightly Div.Reinvestment, Monthly Div. Payout /Reinvestment, Quarterly DivPayout/Reinvestment.Super Institutional Plan : GrowthOption , Dividend Option : Daily Div.Reinvestment, Weekly Div. Payout /Reinvestment, Fortnightly Div.Reinvestment, Monthly Div. Payout /Reinvestment

Plans / Options : Retail Plan :Growth Option, Dividend Option :Daily Divi. Reinvestment,Weekly Divi. Reinvestment,Fortnightly Divi. Reinvestment,Monthly Div. Reinvestment.Institutional Plan : Growth Option/,Dividend Option : D a i l y D i v i d e nd

Reinvestment, W e e k l y D i v i d e n dReinvestment,F o r t n i g h t l y D i v .Reinvestment, Monthly Div. Payout /Reinvestment, Q u a r t e r l y D i vPayout/Reinvestment.Super Institutional Plan : Growth Option,D i v i d e n d O p t i o n : D a i l y D i v .Reinvestment, Weekly Div. Payout /R e in ve stme n t, Fortn igh t ly D iv .Reinvestment, Monthly Div. Payout /Reinvestment

Minimum Investment:Short Term PlanLumpsum : Rs. 5000 in multiples of Rs. 1thereafterSIP/STP : For monthly frequency - Rs.1000 and in multiples of Rs. 1 thereafter

For quarterly frequency - Rs. 2000 and inmultiples of Rs. 1 thereafter

Minimum Investment:Lumpsum : Rs. 5000 in multiples of Rs. 1thereafterSIP/STP : For monthly frequency - Rs.1000 and in multiples of Rs. 1 thereafterFor quarterly frequency - Rs. 2000 and in

multiples of Rs. 1 thereafter

Minimum Investment:Lumpsum : Retail Plan : Rs 5000 undereach option and in multiples of Re.1thereafter. Institutional Plan : Rs 1 crunder each option and in multiples ofRe.1 thereafter. Super Institutional Plan :

Rs 5 crs under each option and inmultiples of Re. 1 thereafter. SystematicInvestment Plan (SIP): Minimuminstalment amount - Rs. 1,000 and Rs.2,000 respectively for Monthly andQuarterly frequency respectively and inmultiples of Re 1 thereafter. SystematicTransfer Plan (STP)/Systematicwithdrawal plan(SWP): Minimuminstallment amount - Rs. 1,000 and Rs.2,000 for Monthly and Quarterlyfrequency respectively and in multiples ofRe 1 thereafter.

Minimum Investment:Lumpsum : Retail Plan : Rs 5000/- undereach option and in multiples of Re. 1thereafter. Institutional Plan : Rs 1 crunder each option and in multiples of Re.1 thereafter. Super Institutional Plan : Rs

5 crs under each option and in multiplesof Re. 1 thereafter. SystematicInvestment Plan (SIP) :Minimuminstalment amount - Rs. 1,000 and Rs.2,000 respectively for Monthly andQuarterly frequency respectively and inmultiples of Re 1 thereafter. SystematicTransfer Plan (STP)/ Systematicwithdrawal plan (SWP): Minimuminstallment amount - Rs. 1,000 and Rs.2,000 for Monthly and Quarterlyfrequency respectively and in multiples ofRe 1 thereafter.

Fund Manager :Mr. Ritesh Jain

Performance of the Scheme(Compounded Annualized Returns)

Fund Manager :Mr. Nimesh Chandan/Ms. Suman Prasad




Fund Manager :Mr. Akhil Mittal


Scheme Benchmark







Scheme Benchmark





Performance 10 years15.07% -



Scheme Benchmark










Scheme Benchmark








10/26









Past performance may or may not besustained in future.







Actual Recurring Expenses for theprevious financial year ended September30,2009 :0.42%

Returns (%) Returns (%)Returns (%)Returns (%)

Entry Load : NilExit Load : Lumpsum / SIP/STP : ShortTerm Plan - Nil

** Entry Load : NilExit Load : For all investment amountsRetail, Institutional & Super InstitutionalPlan Lump Sum/SIP/STP Nil

**Entry Load : NilExit Load : Lumpsum / SIP/ STP : Nil

**

YoY absolute returns Benchmark YoY absolute returns BenchmarkYoY absol ute re turns Benchmark

Entry Load : NilExit Load : Lumpsum /SWP / SIP/STP :1% - if redeemed/switched out within 1year from the date of allotment,Nil if redeemed / switched out after 1years from the date of allotment.

**

10

8

6

4

2

031 Mar

0631 Mar

0731 Mar

0831 Mar

0931 Mar

10

10

8

6

4

2

031 Mar

0631 Mar

0731 Mar

0831 Mar

0931 Mar

10

10

8

6

4

2

031 Mar

0631 Mar

0731 Mar

0831 Mar

0931 Mar

10

30

25

20

15

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5

031 Mar

0631 Mar

0731 Mar

0831 Mar

0931 Mar

10


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Investment Objective : To generateincome through investment in debt andmoney market securities of differentmaturity and issuers of different riskprofiles.

Type & Category : Open Ended GiltScheme

Type & Category : Open Ended DebtFund

Investment Objective : The objective ofthe Fund is to seek to generate incomefrom a portfolio of debt and moneymarket securities.

Type & Category : Open Ended DebtFund

Investment Objective : To provide riskfree return (except interest rate risk) andlong term capital appreciation byinvesting only in Govt. Securities.

Investment Strategy : Canara RobecoShort Term Fund is an open ended debtfund with an objective to seek togenerate income from a portfolioconstituted of short to medium term debtand money market securities. Thecharacteristics of this product are similarto that of a debt fund. Taking intoconsideration the investment profile, thisfund is aimed to be positioned betweenthe liquid fund and the income fund. TheFund will invest in debt securities in orderto generate consistent superior riskadjusted returns as per the investmentobjectives and aims to maintain amodified duration not exceeding twoyears under normal circumstances.The Fund may invest a portion of theportfolio in Money Market Instruments

and the remaining investment will bemade in securities of varying maturity.The asset allocation for the Fund shalldepend on prevailing market conditions.The Fund shall take into account thefollowing parameters while decisions forinvestments are taken: Liquidity ofsecurities, Rating, Maturity profile,Companys growth prospects, Quality ofthe security, and prevailing interest ratescenario. The Fund will also take intoaccount risk management tools likemodified duration, VAR and convexity forefficient management of the Fundinvestments. The Fund may also usevarious derivatives and hedging productsfrom time to time as would be availableand permitted by SEBI in an attempt toprotect the value of the portfolio and

enhance Unit Holders interest.

Investment Strategy : Canara RobecoDynamic Bond Fund is an open endeddebt fund having a primary objective toseek to generate income from a portfolioof debt and money market securities. TheFund will invest in debt securities in orderto generate consistent superior riskadjusted returns as per the investmentobjectives of the fund. The Fund mayinvest a portion of the portfolio in MoneyMarket Instruments and the remaininginvestment will be made in securities ofvarying maturity. The asset allocation forthe Fund shall depend on prevailingmarket conditions. When the marketoutlook is bullish, the fund managerwould increase the exposure to debtinstrument with maturity over one yearand likewise when the outlook is bearish,

the exposure to such long dated securitieswill be reduced. The Fund shall take intoaccount the following parameters whiledecisions for investments are taken:Liquidity of securities, Rating, Maturityprofile, Companys growth prospects,Quality of the security, and prevailinginterest rate scenario. The Fund will alsotake into account risk management toolslike modified duration, VAR and convexityfor efficient management of the Fundinvestments. The Fund may also usevarious derivatives and hedging productsfrom time to time as would be availableand permitted by SEBI in an attempt toprotect the value of the portfolio andenhance Unit Holders interest.

Investment Strategy : CR Gilt PGS is anopen ended Gilt Fund wherein theinvestments would be done only inGovernment Securities of differentmaturities. The investments may bemade in primary as well as secondarymarkets. As far as possible, the portfoliowill be adequately diversified to reducethe risk of underperformance, arising outof unexpected security-specific factors.The Scheme being open-ended, someportion of the portfolio will be invested inshort term government securities so as tom e e t t h e n o r m a l r e p u r c h a s erequirements. The remaining investmentwill be made in securities which arereasonably liquid and of varyingmaturity.The investment pattern of the Scheme is

indicative and may be changed by theF u n d M a n a g e r f o r d e f e n s i v econsiderations. The funds raised underthe Scheme shall be invested only inGovt. Securities defined in Section 2(2) ofthe Public Debt Act, 1944.

Investment Strategy : Canara RobecoIncome is an open ended debt fund withan objective to seek to generate incomefrom a portfolio constituted of mediumto long term debt instrument and moneymarket securities. The characteristics ofthis product are similar to that of a debtfund. The Fund will invest in debtsecurities in order to generate consistentsuperior risk adjusted returns as per theinvestment objectives and aims tomaintain a modified duration notexceeding two years under normalcircumstances. The fund managementteam will endeavor to maintain aconsistent performance in the scheme bymaintaining a balance between safety,liquidity and profitability aspects ofvarious investments. The fund manager

will try to achieve an optimal risk returnbalance for management of the fixedincome portfolios.The investments in debt instrumentscarry various risks like interest rate risk,liquidity risk, default risk, purchasingpower risk etc. While they cannot bedone away with, they can me minimizedby diversification and effective use ofh e dgin g te ch n iqu e s. Th e fu n dmanagement team will take an activeview of the interest rate movement bykeeping a close watch on variousparameters of the Indian economy, aswell as developments in global markets.

Investment Objective : The objective ofthe Fund is to generate income from aportfolio constituted of short to mediumterm debt and money market securities.There is no assurance that the objective ofthe Fund will be realised and the Funddoes not assure or guarantee any returns.

Canara Robeco Income Canara Robeco Gilt PGS Canara RobecoBond Fund

Dynamic Canara RobecoTerm Fund

Short





Number of Live Folios : 693Number of Live Folios : 579Number of Live Folios : 737Number of Live Folios : 5366

Comparison with Other Schemes :Canara Robeco Income is an activelymanaged debt fund wherein the fundmanager takes an active view of theinterest rate movements by keeping aclose watch on various parameters of theIndian economy as well as thedevelopments in the global markets.Based on the interest rate view, theduration of the portfolio will be decidedalong with the asset allocation patternbetween sovereign & corporate bonds.

Comparison with Other Schemes :Canara Robeco Gilt PGS invests in G-Secsof varying maturity issued by ReserveBank of India (RBI). Being invested insovereign papers, the fund does notexpose its investors to Credit Risk as inthe case of other bond funds.

Comparison with Other Schemes :Canara Robeco Dynamic Bond Fundintends to invest and trade in G-secs andCorporate Debt by identifying mispricedopportunities & capturing volatilitytrends. The fund aims at generatingAlpha through free-style durationmanagement, allowing the fund toposition the modified duration of thefund from 6 months to 10 yearsdepending on interest rate view.

Comparison with Other Schemes :Canara Robeco Short Term Fund isperfectly suited for an investor who has ashort term investment horizon andwishes to avoid high volatility but expectssuperior returns than liquid funds. Thefund predominantly has accrual yields onhigh quality Money Market Instrumentsalong with an active trading strategy forgenerating Alpha.


12/26


Min Max

Debt (Including 80 100Securitised Debt)

Money MarketInstruments / Call 0 20

Money

Plans/ Options :Growth OptionGrowth Option with AutomaticRepurchaseDividend OptionDividend ReinvestmentDividend PayoutBonus Option

Benchmark Index :Bond Fund Index

CRISIL Composite


Min Max

Govt. Securities / 0 100MMI/Call Money

Plans/ Options :Growth OptionGrowth Option with AutomaticRepurchaseDividend OptionDividend ReinvestmentDividend Payout

Benchmark Index :Bex Index

CRISIL I Sec Li -


Min Max

Government ofindia & Corporate 0 70Debt Securities(including

Securitised Debt)Money Market 30 100Instruments

Plans/ Options :Retail Plan :Growth OptionGrowth option with automaticrepurchaseDividend OptionDividend Reinvestment, Dividend PayoutInstitutional Plan :

Growth OptionGrowth option with automaticrepurchaseDividend Option : DividendReinvestment, Dividend Payout

Benchmark Index :Bond Fund Index

CRISIL Composite


Min Max

Money Market 60 100Instruments

Government ofIndia & Debt

Securities 0 40(includingSecuritised Debt)

Plans/ Options :Retail Plan :Growth Option, Dividend Option :Weekly Divi. Reinvestment, Monthly Divi.Reinvestment / PayoutInstitutional Plan :Growth Option, Dividend Option :Weekly Divi. Reinvestment, Monthly Divi.

Reinvestment / Payout


Crisil Liquid Fund

Asset Allocation Asset Allocation Asset Allocation Asset Allocation





Minimum Investment:Lumpsum :Retail Plan - Rs 5000/- under eachoption and in multiples of Rs. 1 thereafterInstitutional Plan - Rs 1 cr under eachoption and in multiples of Rs. 1 thereafter

Minimum Investment:Lumpsum :Retail Plan - Rs 5000/- under eachoption and in multiples of Rs. 1 thereafterInstitutional Plan - Rs 1cr under eachoption and in multiples of Rs. 1 thereafter

STP : For monthly frequency - Rs. 1000and in multiples of Rs. 1 thereafterFor quarterly frequency - Rs. 2000 and inmultiples of Rs. 1 thereafter







Fund Manager :Mr. Akhil Mittal


Scheme Benchmark

Inception Date 19.9.02




Performance 10 years - -Since Inception 9.22% 5.61%


19.9.02

Scheme Benchmark


Performance 1 year -0.45% 3.09%



Performance 10 years 9.12% -Since Inception 9.23% -


#

Canara Robeco Income Canara Robeco Gilt PGS Canara Robeco DynamicBond Fund

Canara Robeco ShortTerm Fund

#Benchmark Index : Crisil I-Sec Li-BexIndex was formulated on 31.03.2002and hence since inception are notcomparable.

Scheme Benchmark


Since Inception 2.41% 4.05%


29.5.09

Scheme Benchmark


Since Inception 6.08% 3.69%


31.3.09


13/26

Canara Robeco Income Canara Robeco Gilt PGS Canara Robeco DynamicBond Fund

Canara Robeco ShortTerm Fund

YoY absolute ret urns Benchmark

Since Inception

8

0

6

4

2




Performance of the Scheme(Growth Option)Returns (%) Returns (%)





Entry Load : NilExit Load: Lumpsum / SWP / SIP/STP :0.5% - if redeemed/switched out within 6months from the date of allotment, Nil if redeemed / switched out after 6Months from the date of allotment

** Entry Load : NilExit Load : For all investment amountsRetail & Institutional Plan Lump Sum:Nil

** Entry Load : NilExit Load :Retail Plan & Institutional Plan - 0.25% - Ifredeemed/switched out within 1 monthfrom the date of allotment, Nil - ifredeemed/switched out after 1 monthfrom the date of allotment

**

Absolute Returns(Note : Scheme has been not completed 1 year

Since Inception

8

0

6

4

2

Absolute Returns(Note : Scheme has been not completed 1 year




Absolute Returns Past performancemay or may not be sustained in future.


Entry Load : NilExit Load : Lumpsum / SWP / SIP/STP :0.5% - if redeemed/switched out within 6months from the date of allotment, Nil if redeemed / switched out after 6Months from the date of allotment.

**

35

30

25

20

15

10

5

031 Mar

0631 Mar

0731 Mar

0831 Mar

0931 Mar

10

25

20

15

10

5

0

-531 Mar

0631 Mar

0731 Mar

0831 Mar

0931 Mar

10

Scheme specific Risk Factors for all the Equity Schemes

The value of the Scheme investments may be affected by factors affecting capital markets generally, such as price and volume volatility in the stock markets, interest rates,currency exchange rates, foreign investments, changes in government policy, political, economic or other developments and closure of the stock exchanges.

Investment made in unlisted equity or equity-related securities may only be realisable upon listing of these securities.

Trading volumes, settlement periods and transfer procedures may restrict liquidity of investments in equity and equity related securities. Different segments of the Indianfinancial markets have different settlement periods and such periods may be extended significantly by unforeseen circumstances. The length of the settlement may affect theScheme in the event the Scheme has to meet large number of redemption. The Investment Manager perceives such situations to be exceptional in nature.













Canara Robeco Balance

Canara Robeco Emerging Equities

Canara Robeco Equity Diversified

Canara Robeco Equity Tax Saver

Canara Robeco Infrastructure


14/26

Canara Robeco Nifty Index

Canara Robeco F.O.R.C.E Fund

( Canara Robeco Floating Rate, Canara Robeco Treasury Advantage Fund, Canara Robeco Gilt PGS, Canara Robeco Short Term Fund, Canara Robeco Liquid, Canara RobecoIncome, Canara Robeco Dynamic Bond Fund, Canara Robeco Income Plan)

Performance of the S & P Nifty Index will have a direct bearing on the performance of the Scheme.

In the event the S & P CNX Nifty Index is dissolved or is withdrawn, the Trustees reserves a right to modify the Scheme so as to track a different and suitable index/indices or tosuspend tracking the Nifty till such time it is dissolved/withdrawn or not published and an appropriate intimation will be sent to the Unit Holders of the Scheme. In such a case,the investment pattern will be modified suitably to match scheme objective and the composition of the securities that are included in the new index that will be tracked.

Tracking error is inherent in any index based Schemes and as such, errors may cause Canara Robeco Nifty Index to generate returns which are not in line with the performanceof the Nifty or one or more securities covered by Nifty. Such variations are referred to as tracking errors are expected to be around 2% p.a. but may vary due to several factors.

IISL undertakes a periodical review of the scrips that comprise the Nifty and may either drop or include new securities. In such an event, the scheme will endeavour to reallocateits portfolio to mirror the changes. However, the reallocation process may not occur instantaneously and permit precise mirroring of the Nifty during this period.

Any delay in the purchase or sale of shares due to illiquidity in the market, sett lement and realisation of sales proceeds, delay in registration of securities or in receipt and

consequent reinvestment of dividends etc. The indices reflects the prices of securities at a point in time, which is the price at close of business day on The National StockExchange. The scheme however, may trade these securities at different points in time during the trading sessions and therefore the prices at which the scheme trades may notbe identical to the closing price of each scrip on that day on the NSE. In addition, the scheme may opt to trade the same securities on different exchanges due to price or liquidityfactors, which may also result in t raded prices being at variance, from NSE closing prices.





(Financial Opportunities, Retail Consumption & Entertainment Fund)

The fund will invest in equity and equity related securities of companies engaged in banking, financial services, retail consumption and entertainment and hence theconcentration risk is expected to be relatively high. Amongst these sectors, at times, a majority of investments could be under a single sector and in the event the sector does notperform well due to forces affecting the market, the scheme performance may be affected to that extent.

While banking and financial services sector is well developed in India, retail consumption and entertainment sectors are of recent origin. The risk weightage for investment inthese sunrise sectors could be relatively higher compared to other sectors.




I. Price-Risk or Interest-Rate Risk: Fixed income securities such as bonds, debentures and money market instruments run price-risk or interest-rate risk. Generally, wheninterest rate rise, prices of existing fixed income securities fall and when interest rates drop, such prices increase. The extent of fall or rise in the prices is a function of theexisting coupon, days to maturity and the increase or decrease in the level of interest rates.

II. Credit Risk: In simple terms this risk means that the issuer of a debenture/bond or a money market instrument may default on interest payment or even in paying back theprincipal amount on maturity. Even where no default occurs, the price of the security may go down because the credit rating of an issuer goes down. It must, however, benoted that where the Scheme has invested in Government securities, there is no credit risk to that extent.

III. Reinvestment Risk: Investments in fixed income securities may carry reinvestment risk as interest rates prevailing on the interest or maturity due dates may differ from theoriginal coupon of the bond. Consequently, the proceeds may get invested at a lower rate.

Different types of securities in which the Scheme would invest as given in the offer document carry different levels and types of risk. Accordingly the scheme's risk may

increase or decrease depending upon its investment pattern e.g. corporate bonds carry a higher amount of risk than Government securities. Further even amongcorporate bonds, bonds which are AA rated are comparatively more risky than bonds which are AAA rated.

IV. Risk associated with Mortgage Backed Securities (MBS) - Housing Loans

Prepayment Risk: The Fund may receive payment of monthly payouts earlier than scheduled. Prepayments shorten the life of the instrument to an extent that cannot befully predicted. The rate of prepayments may be influenced by a variety of economic, social and other factors.

Credit Risk: Delinquencies may happen which would reduce the principal amount. Typically MBS structures come with credit enhancement in variety of forms. Ifdelinquencies are higher than the amount available in the credit enhancement facility than the monthly payouts to The Fund would reduce. Historically, it has beenobserved that housing loans have lower default rates as compared to other forms of credit.

Liquidity Risk: Historically the secondary market volume of securitised papers has been limited. This could limit the ability of The Fund to resell them. Secondary markettraders could be at a discount or premium depending upon the prevailing interest rates.

Conversion Risk: Conversion of loans from fixed rates to floating rate loans and vice versa could lead to a change in the expected cash flows from the loans.

V. Risk associated with Asset Backed Securities (ABS)-Auto loans

Prepayment Risk: The Fund may receive payment of monthly payouts earlier than scheduled. Prepayments shorten the life of the instrument to an extent that cannot be

Risk Mitigation Factors for all the Equity Schemes : Investments made by the schemes would be in accordance with the investment objectives of the schemes and provisions ofSEBI Regulations. Since investing required disciplined risk management, the AMC would incorporate adequate safeguards for controlling risks in the portfolio constructionprocess. The risk control process involves reducing risks through portfolio diversification, taking care however not to dilute returns in the process. The AMC believes that thisdiversification would help achieve the desired level of consistency in returns. The AMC aims to identify securities, which offer superior levels of yield at lower levels of risks. With

the aim of controlling risks, the investment team of the AMC will carry out rigorous in-depth analysis of the securities proposed to be invested in.While these measures are expected to mitigate the above risks to a large extent, there can be no assurance that these risks would be completely eliminated.

Scheme specific Risk Factors for all the Debt Schemes


15/26

fully predicted. The rate of prepayments may be influenced by a variety of economic, social and other factors. Prepayment in auto loans is lower than housing loans as theshorter tenor of auto loans makes it economically unattractive to prepay after considering the prepayment charges.

Credit Risk: Delinquencies may happen which would reduce the principal amount. Typically ABS structures come with credit enhancement in variety of forms. Ifdelinquencies are higher than the amount available in the credit enhancement facility than the monthly payouts to The Fund would reduce. Typically auto loans carryhigher risk than MBS as the value retention of the underlying asset is higher in MBS as compared to the underlying asset of ABS.

Liquidity Risk: Historically the secondary market volume of securitised papers has been limited. This could limit the ability of The Fund to resell them. Secondary markettraders could be at a discount or premium depending upon the prevailing interest rates.

VI. Risk associated with Asset Backed Securities (ABS) - Corporate loans

Credit Risk: The Fund has an exposure to the Borrower/Borrowers and servicing of the instrument depends on the credit risk of the Borrower. The value of the instrumentwould fluctuate depending upon the changes in the perceived level of credit risk as well as any actual default.

Prepayment Risk: The Borrower may prepay the receivables prior to their respective due dates. This may result in a change in the yield and tenor for The Fund.Limited Liquidity and Price Risk: Historically the secondary market volume of securitised papers has been limited. This could limit the ability of The Fund to resell them.Secondary market trades could be at a discount or premium depending upon the prevailing interest rates.

VII. Risk associated with investing in Securitised Debt

Scheme may invest in domestic securitized debt such as asset backed securities (ABS) or mortgage backed securities (MBS). ABS means securitized debts wherein theunderlying assets are receivables arising from personal loans, automobile loans, etc. MBS means securitized debts wherein the underlying assets are receivables arisingfrom loans backed by mortgage of properties which can be residential or commercial in nature. ABS / MBS instruments reflect the undivided interest in the underlying ofassets and do not represent the obligation of the issuer of ABS / MBS or the originator of the underlying receivables. The ABS / MBS holders have a limited recourse to theextent of credit enhancement provided. ABS / MBS holders will suffer credit losses in the event of the delinquencies and credit losses in the underlying pool exceed thecredit enhancement provided. As compared to the normal corporate or sovereign debt, ABS / MBS are normally exposed to a higher level of reinvestment risk.

VIII. Risk associated with investing in Derivatives

As and when the Scheme trades in the derivatives market, there are risk factors and issues concerning the use of derivatives that investors should understand. Derivativeproducts are specialized instruments that require investment techniques and risk analysis different from those associated with stocks and bonds. The use of a derivativerequires an understanding not only of the underlying instrument but also of the derivative itself. Derivatives require the maintenance of adequate controls to monitor thetransactions entered into, the ability to assess the risk that a derivative adds to the portfolio and the ability to forecast price or interest rate movements correctly. There is a

possibility that loss may be sustained by the portfolio as a result of the failure of another party (usually referred as the "counter party") to comply with the terms of thederivatives contract. Other risk in using derivatives include the risk of mispricing or improper valuation of derivatives and the inability of derivatives to correlate perfectlywith underlying assets, rates and indices.

Thus, derivatives are highly leveraged instruments. Even a small price movement in the underlying security could have a large impact on their value. Derivatives canprovide disproportionate gains as well as disproportionate losses to the investor. Execution of such strategies depends upon the ability of the Fund Manager to identifysuch opportunities. Identification and execution of the strategies to be pursued by the Fund Manager involve uncertainty and decision of Fund Manager may not always beprofitable. No assurance can be given that the Fund Manager will be able to identify or execute such strategies.

The risk associated with the use of derivatives is different from or possibly greater than, the risks associated with investing directly in securities and other traditionalinvestments.

Trading in derivatives has the following risks:

a. An exposure to derivatives in excess of the hedging requirements can lead to losses.

b. An exposure to derivatives can also limit the profits from a genuine investment transaction.

c. Efficiency of a derivative market depends on the development of a liquid and efficient market for underlying securities.

Risk Mitigation Factors for the Debt Schemes: Since investing requires disciplined risk management, in order to protect the interests of investors, the AMC would incorporate

adequate safeguards for controlling risks in the portfolio. As a prudent measure, the AMC has broad internal investment norms and investments made through the schemewould be in accordance with the investment objectives of the schemes and provisions of SEBI Regulations. Where required, scheme specific guidelines are also in place.Concentration of risk is mitigated by defining issuer limits.

Rigorous in-depth credit evaluation of the issuers will be conducted by the investment team before making investments. As part of credit evaluation, a study on the operatingenvironment, past track record as well as future prospects of the issuer, short as well as long term financial health of the issuer will be carried out. The AMC will be guided by theratings of accredited agencies such as CRISIL, CARE, ICRA etc. as well as the internal norms for credit exposure


16/26

**In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, On reinvestment of dividends, the number of units to the credit of unit holder will2009, no entry load will be charged by the Scheme to the investor effective increase to the extent of the dividend reinvested divided by the first 'Ex-incomeAugust 1, 2009. Upfront commission shall be paid directly by the investor to the Distribution NAV' on the day of reinvestment as explained above. There shall,AMFI registered Distributors based on the investors assessment of various however, be no entry load on the dividends so reinvested.factors including the service rendered by the distributor.

Risk Profile of Mutual Fund Investing : Default Option

Mutual Fund Units involve investment risks including possible loss of principala) If the investor does not clearly specify the choice of Options , at the time of Please read the Scheme Information Document carefully for details on risk factors

investing it will be treated as a Growth Option. before investment.

b) If the investor does not clearly specify the choice of Payout or The value of the Scheme investments may be affected by factors affecting capitalReinvestment facility within the Dividend option, it will be treated as a markets generally, such as price and volume volatility in the stock markets,Reinvestment facility. interest rates, currency exchange rates, foreign investments, changes in

government policy, political, economic or other developments and closure of thec) In Canara Robeco Monthly Income Plan in dividend option ,If the investor

stock exchanges.Investment made in unlisted equity or equity-related securitiesdoes not clearly specify the choice of Monthly Dividend option / Quarterly

may only be realizable upon listing of these securities. Trading volumes,Dividend option, it will be treated as a Monthly Dividend option.

settlement periods and transfer procedures may restrict liquidity of investments inWho can Apply equity and equity related securities. Different segments of the Indian financial

markets have different settlement periods and such periods may be extended1. Adult Individual(s) and also minor(s) through their parent/guardian.

significantly by unforeseen circumstances. The length of the settlement may(Application of minors jointly with adults not allowed).

affect the Scheme in the event the Scheme has to meet large number of2. Adult Individual(s) jointly not exceeding three, on first holder or redemption. Please read the Scheme Information Document (SID) carefully for

survivor/s basis. the Scheme Specific Risk Factors and other details before investing.

3. Hindu Undivided Family (HUF) Applicable NAV for sale and repurchase : For all Scheme except Canara RobecoFloating Rate Short Term Plan and Canara Robeco Liquid Schemes

4. Partnership FirmsFor Sale of units (including Switch - In) :

5. A Company as defined in the Companies Act,1956, Public Sector

Undertakings. a) For applications received up to 3 p.m, along with instruments payable at parat the place of receipt, closing NAV of the same day on which the application6. A Body Corporate established by or under any law in force in India.

is received shall be applicable.7. A Co-operative Society registered under any law relating to Co-operative

b) For applications received after 3 p.m, along with instruments payable at parSocieties in India.

at the place of receipt, closing NAV of the next business day shall be8. A Religious or Charitable Trust / Wakfs or a Society established under the applicable.

relevant laws and authorised to invest in Mutual Fund Schemes.c) For applications received with outstation instruments not payable at par at

9. FIIs registered with SEBI. the place of receipt, closing NAV of the day of realisation of the instrumentsshall be applicable.

10. Banks and Financial Institutions.d) For applications received on non-business day along with instruments

11. Pension Funds/Pension Fund Managers.payable at par at the place of receipt, closing NAV of the next business day

12. Non Resident Indians (NRIs) and Persons of Indian Origin (PIOs) on shall be applicable.repatriation / non-repatriation basis.

e) In respect of applications in Debt/Gilt schemes, for applications with amount13. Army, Air Force, Navy and other para-military units and bodies created by equal to or more than Rs. 1.00 crore, irrespective of the time of receipt of

such institutions. Scientific and Industrial Research Organisations. application, closing NAV of the day on which the funds are available forutilisation shall be applicable.

14. Multilateral Funding Agencies / Body Corporates incorporated outsideIndia with the permission of Government of India / Reserve Bank of India For Repurchase of units(including Switch - Out) :

15. Other Schemes of Canara Robeco Mutual Fund subject to the conditions a) For application received upto 3.00 p.m.closing NAV of the day of receipt ofand limits prescribed by SEBI Regulations. application) shall be applicable.

16. Any other category of investors that may be permitted by the Trustees as b) For application received after 3.00 p.m. closing NAV of the next business dayper Indian Laws, in future. shall be applicable.

Dividend Policy for All Schemes : Applicable NAV for sale of units (including switch - ins)

The Scheme may distribute, surplus if any, by way of dividend/fully paid bonus For Canara Robeco Floating Rate Short Term Plan and Canara Robeco Liquidunits, as may be decided by the Trustees from time to time. If there is no Schemesdistributable surplus or surplus amount is too small for distribution, in the

a) For application received upto 12.00 noon on a business day and funds areopinion of the Trustees, the Dividend/Bonus declaration may not take place.

available for utilisation on the same day the close NAV of the dayThe Scheme is not assuring or guaranteeing any dividend or returns. immediately preceding day of receipt of application.

Income Distribution, if declared, warrants will be issued within 30 days from the b) For application received after 12.00 noon on a business day and funds aredate of declaration of Income Distribution or such period that may be stipulated available for utilisation on the same day the closing NAV of the day shall befrom time to time. The Income Distribution will be paid out of the Net surplus of applicable.the Scheme, to those unit holders whose names appear in the register of unit

c) Irrespective of the time of receipt of application, where the funds are notholders on the date to be notified for the purpose.

available for utilisation on the day of the application the closing NAV of theDividend Reinvestment : day immediately preceeding the day on which the funds are available for

utilisation.The units holders have the option to reinvest the Dividend declared by theScheme. Such unit holders opting to reinvest the dividend receivable by them Applicable NAV for Repurchase of Units(including switch - outs)shall invest in additional units of the Scheme. Upon exercising such option, the

For Canara Robeco Floating Rate Short Term Plan and Canara Robeco Liquiddividend due and payable to the unit holders will be compulsorily and without

Schemesany further act by the unit holders reinvested in the Scheme.

a) For application received upto 3.00 p.m. the closing NAV of the dayThe dividends so reinvested shall be constructive payment of dividends to the

immediately preceding the next business day shall be applicable.unit holders and constructive receipt of the same amount from each unitholder, for reinvestment in units. b) For application received

Documents

Can Robeco Common Application Form