Speaking at the launch of the fund house’s Banking and Financial Services Fund, Shridatta Bhandwaldar said wars tend to prolong only when funding remains strong.
Canara Robeco Mutual Fund believes the impact of the US-led war between Israel and Iran will be limited, as an amicable solution will be reached sooner rather than later.
Money fuels conflicts
Shridatta Bhandwaldar, Head of Equities, Canara Robeco Mutual Fund, said money is the main ingredient that prolongs war. In the battle between Russia and Ukraine, the latter managed to strike back, supported by the United States and Europe.
In the case of the Israel-Iran war, the constraint of money is clearly visible from the number of missiles and drones being fired by Iran coming down from about 100 to 10-12 a day now, he said.
Limited India impact
While the benchmark indices have fallen since the war broke out, the direct impact on the Indian economy will be limited except for the spike in oil prices and subsequent impact on the rupee, he added.
Indian economy is in a better shape with corporate earnings bouncing back and valuation of top-200 companies close to their historic levels, said Bhandwaldar at the launch of the fund house’s Banking and Financial Services Fund.
New fund strategy
The portfolio of the new fund will be split into steady compounders with established leaders, strong balance sheets, and low risk, accounting for 70 per cent of the investment, while growth accelerators and disruptors will make up the rest to deliver the much-needed alpha, he said.
The Canara Robeco Banking and Financial Services fund will provide a steady risk-adjusted return that will be beneficial even in a volatile market, he added.
AI impact awaited
The impact of Artificial Intelligence on the IT sector can be gauged only after reviewing the numbers over a few quarters, he said. Investors’ expectations from mid- and small-cap stocks have come down to reasonable levels after the recent crash, he added.
Currently, the fund house is underweight on FMCG, oil and gas and metals. Overweight on auto ancillary, pharma, defence and industrials, especially companies focused on the power sector.
Published on March 6, 2026
