Mirae Asset Emerging Bluechip Fund: A Smart Investment Strategy

Mirae Asset Mutual Fund offers a range of investment options, including equity funds, hybrid funds, and fund of funds. One of their offerings is the Mirae Asset Emerging Bluechip Fund, which aims to generate income and capital appreciation by investing in a diversified portfolio of large-cap and mid-cap Indian equities. This fund provides a reasonable degree of flexibility to the fund management team to invest in companies of different sizes, depending on their growth potential. With a minimum SIP amount of ₹1,000, investors can gain exposure to both large and mid-cap stocks through a single portfolio. However, it's important to note that the fund's returns are subject to market risk, and investors should be prepared for potential volatility in their investment value.

Investment strategy

The Mirae Asset Large & Midcap Fund (formerly known as the Mirae Asset Emerging Bluechip Fund) is an open-ended equity scheme that invests in both large-cap and mid-cap stocks. The fund's investment strategy is driven by a bottom-up approach, focusing on value investing in growth-oriented businesses. The fund targets high-quality businesses with reasonable prices and holds them for an extended period.

The fund's strategy is to provide investors with the opportunity to participate in the growth of emerging companies that have the potential to become tomorrow's blue-chip companies. The fund managers select businesses based on large market opportunities, sustainable competitive advantages, and ROI, led by management with good corporate governance and thought leadership.

The fund has a suggested investment tenure of 3-5 years or more, with a Moderately High risk profile. It is suitable for investors who aim for capital appreciation, want exposure to both large and mid-cap stocks, have long investment horizons, and have a moderately high-risk appetite.

The fund has a minimum SIP amount of Rs. 99, with multiples of Re. 1 thereafter. It offers both Growth and Dividend Options, with Dividend Payout and Dividend Reinvestment sub-options. The fund's total expense ratio (TER) is within the maximum limits set by SEBI Mutual Fund Regulations, with a current expense ratio of 1.60%.

The fund's portfolio is largely conservative, with holdings mostly in large-cap stocks and debt instruments. As of July 31, 2023, the fund had invested 96.52% in equity, 3.48% in cash and cash equivalents, and 0% in debt.

Risk profile

The Mirae Asset Large & Midcap Fund (formerly known as the Mirae Asset Emerging Bluechip Fund) is an open-ended equity scheme that invests in both large cap and mid cap stocks. The fund's risk profile is described as 'moderately high' by the Mirae Asset Financial Group. Investors should understand that their principal investment in this fund is at moderately high risk.

The fund's returns are subject to market risk and may be volatile or even negative depending on market conditions. The fund's performance may not be sustained in the future. As with all equity funds, investors must be prepared for ups and downs in their investment value. The fund invests in a combination of large and medium-sized companies, which provides a reasonable degree of flexibility to the fund management team to invest in companies of different sizes, depending on where it expects maximum gains.

The fund's portfolio is largely conservative, with most holdings in large cap stocks and debt instruments. As per SEBI's Riskometer, the fund has a very high risk level. The fund's expense ratio is 1.52%, which is slightly higher than the category average of 1.9%. The fund has a suggested investment tenure of 3-5 years.

In summary, the Mirae Asset Large & Midcap Fund has a moderately high-risk profile. Investors should be comfortable with a reasonable degree of risk and volatility and be prepared to invest for the suggested tenure of 3-5 years to see potential returns.

Who can invest

The Mirae Asset Large & Midcap Fund is suited for investors who:

• Are looking for capital appreciation
• Want exposure to both large and midcap stocks through a single portfolio
• Have long investment horizons, i.e., at least 3 years or longer
• Have a moderately high-risk appetite

The fund is not suitable for investors who need to redeem their investment in less than five years.

Investment tenure

The Mirae Asset Large & Midcap Fund (formerly known as the Mirae Asset Emerging Bluechip Fund) is an open-ended equity scheme that invests in both large-cap and mid-cap stocks. The fund's investment strategy is to hold high-quality businesses at a reasonable price over an extended period. The suggested investment tenure for this fund is 3-5 years, and it carries a moderately high-risk profile.

The fund invests 35-65% in large-cap companies (top 100 companies by market capitalization) and 35-65% in mid-cap companies (companies ranked 101st to 250th by market capitalization). This diversification across market caps provides stability and agility to the portfolio, helping to meet long-term financial goals. The fund's bottom-up investment approach is driven by value investing in growth-oriented businesses.

The Mirae Asset Large & Midcap Fund is ideal for investors who aim for capital appreciation, want exposure to both large and mid-cap stocks through a single portfolio, have long investment horizons of at least 3 years, and have a moderately high-risk appetite. The fund offers a Regular Plan and a Direct Plan, with a minimum SIP installment amount of Rs. 99.

It is important to note that the fund's returns are subject to market risk and can be volatile or even negative depending on market conditions. Past performance may not be indicative of future results.

Investment options

The Mirae Asset Large & Midcap Fund (formerly known as the Emerging Bluechip Fund) is an open-ended equity scheme that invests in both large-cap and mid-cap stocks. The fund offers a Regular Plan and a Direct Plan, with a common portfolio and separate NAVs. The minimum SIP instalment amount is Rs. 99, and investors can choose between a Growth Option and a Dividend Option. The Dividend Option is further divided into Dividend Payout and Dividend Reinvestment.

The fund's investment objective is to generate income and capital appreciation by investing primarily in Indian equities and equity-related securities of large-cap and mid-cap companies. The fund can also seek participation in other Indian equity and equity-related securities to achieve optimal portfolio construction. The suggested investment tenure is 3-5 years or more, and the risk profile is 'Moderately High'.

The fund's portfolio is largely conservative, with holdings mostly in Large Cap stocks and debt instruments. As of July 2023, the fund had invested 96.52% in Equity, 3.48% in Cash & Cash Eq., and 0% in Debt. The expense ratio is 1.60%.

Investors can purchase the fund directly from the website of the fund house, Mirae Asset Mutual Fund, or through platforms like MF Central and MF Utility. Most banks also act as mutual fund distributors and can provide assistance.

The latest NAV (as of October 2024) is between Rs.151.538 and Rs.168.978. The AUM is approximately Rs.40,000 Crores.

Frequently asked questions