Mirae Asset Large Cap Fund: A Smart Investment Strategy

Mirae Asset Large Cap Fund is an open-ended equity scheme that predominantly invests in large-cap stocks. The fund's objective is to generate long-term capital appreciation by investing in equities of large-cap companies. It offers a Regular Plan and a Direct Plan, with a minimum SIP installment amount of Rs. 99 and a minimum additional application amount of Rs. 1,000. The suggested investment tenure is 3-5 years, and the risk profile is 'Very High'. The fund has a total expense ratio (TER) of up to 2.25%. Before investing, individuals should consider their financial goals, risk tolerance, and conduct their own due diligence.

Investment approach

The Mirae Asset Large Cap Fund is an open-ended equity scheme that predominantly invests across large-cap stocks. The fund's investment approach is centred on participating in high-quality businesses up to a reasonable price and holding them over an extended period. The scheme tries to identify companies with a sustainable competitive advantage, strong pricing power, and sector leadership.

The fund combines the consistency of large-cap stocks with a few conviction midcap ideas, not exceeding 20% of the total portfolio. It has the flexibility to invest across sectors and themes, with a minimum of 80% investment in large-cap stocks and up to 100% investment in large-cap companies. The fund can also invest up to 20% in equity and equity-related securities of companies other than large-cap ones and up to 20% of its assets in debt securities, including money market instruments.

The Mirae Asset Large Cap Fund seeks to identify profitable growth-oriented businesses run by competent management. It analyses business, management, and valuation to make investment decisions. Additionally, the fund also keeps some space for deep value, turnarounds, and cyclicals. The fund's objective is to generate long-term capital appreciation by capitalizing on potential investment opportunities by investing predominantly in large-cap equities.

The suggested investment tenure for the Mirae Asset Large Cap Fund is 3 to 5 years or more. The fund's risk profile is 'Very High', indicating that investors' principal investments are at a very high risk. It is suitable for investors seeking capital appreciation or wealth creation over a long investment horizon, typically 3 to 5 years or more.

Investment tenure

The Mirae Asset Large Cap Fund is an open-ended equity scheme that predominantly invests in large-cap stocks. The fund has a suggested investment tenure of 3-5 years or more. This is because the fund's investment approach is centred around holding high-quality businesses over an extended period. The scheme aims to identify companies with a sustainable competitive advantage, strong pricing power, and sector leadership.

The ideal investment horizon for this fund is 3+ years, indicating that investors should be prepared to hold their investments for at least this duration. This investment horizon is recommended to allow the fund's strategy to play out and to reduce the impact of short-term market volatility on investment returns.

The Mirae Asset Large Cap Fund is suitable for investors with a long-term investment horizon, typically 3-5 years or more. It is important for investors to understand that their principal investment in this fund will be at a very high risk. The fund's returns are subject to market risk and can be volatile or even negative depending on market conditions. Therefore, it is crucial for investors to carefully consider their risk appetite and investment goals before investing in the Mirae Asset Large Cap Fund.

The Mirae Asset Large Cap Fund offers both Regular and Direct Plans, with separate NAVs. Investors can choose between the Growth Option and the Dividend Option. The Dividend Option further offers two sub-options: Dividend Payout and Dividend Reinvestment. It is important to note that the Regular and Direct options have different expense ratios, with the Regular option having a higher expense ratio due to the commission paid to the broker/distributor. As a result, the Direct option can provide higher returns to investors due to the lower expense ratio.

Risk profile

The Mirae Asset Large Cap Fund is an open-ended equity scheme that predominantly invests in large-cap stocks. The fund has a 'very high' risk profile, meaning that investors' principal investment will be at very high risk. The fund's returns are subject to market risk and can be volatile or even negative depending on market conditions.

The fund's investment objective is to generate long-term capital appreciation by investing primarily in equities of large-cap companies. It is important to note that the scheme does not guarantee or assure any returns. The suggested investment tenure is 3-5 years, and it is suitable for investors with a high to very high-risk appetite.

The fund invests over 80% in large-cap stocks, which are the top 100 companies by market capitalization. These companies are well-established with strong market share and are considered safer compared to mid and small-cap companies. However, despite the focus on large-cap stocks, the fund's returns can still be volatile and subject to market risks.

The fund combines investments in large-cap stocks with some exposure to mid-cap ideas, up to a maximum of 20%. This adds a layer of risk as mid-cap stocks are generally riskier than large-cap stocks, although they have the potential to deliver higher returns over the long term.

Overall, while the Mirae Asset Large Cap Fund offers the potential for capital appreciation, it comes with a very high-risk profile. Investors should carefully consider their risk tolerance and investment objectives before investing in this fund.

Who can invest

Mirae Asset Large Cap Fund is suitable for investors looking for capital appreciation or wealth creation over a sufficiently long investment horizon. The recommended investment horizon is 3+ years. The risk profile of this fund is 'very high', so it is suitable for investors with a high to very high-risk appetite. This fund is also suitable for first-time investors with a long investment horizon, as it can be part of a core portfolio.

Mirae Asset Large Cap Fund is an open-ended equity scheme that predominantly invests across large-cap stocks. It aims to combine the consistency of large caps with a few conviction midcap ideas (up to a maximum of 20%). The fund has flexibility in investing across sectors and themes. The investment approach is centred around participating in high-quality businesses at a reasonable price and holding them over an extended period. The scheme tries to identify companies with a sustainable competitive advantage, strong pricing power, and sector leaders.

The minimum SIP instalment amount is Rs. 99, and the minimum additional application amount is ₹ 1,000 per application.

Investment options

Mirae Asset Large Cap Fund is an open-ended equity scheme that predominantly invests in large-cap stocks. The fund has a minimum SIP installment amount of Rs. 99 and a minimum additional application amount of ₹1,000. It offers a Regular Plan and a Direct Plan, with a Growth Option and IDCW (Payout/Reinvestment). The recommended investment horizon is 3+ years.

The fund aims to invest >80% in large-cap stocks (Top 100 companies by market capitalization) and combines this with a few conviction midcap ideas (up to a max of 20%). The fund is flexible and can invest across sectors and themes. The investment approach is centered around participating in high-quality businesses at a reasonable price and holding them over an extended period. The scheme identifies companies with sustainable competitive advantages, strong pricing power, and sector leaders.

The Mirae Asset Large Cap Fund is suitable for investors looking for capital appreciation or wealth creation over a long investment horizon. Investors should have a high to very high-risk appetite and a minimum investment horizon of 3-5 years.

The fund has a 'Very High' risk profile, meaning that investors' principal investments are at very high risk. The total expense ratio (TER) for the fund is 2.25% for the first Rs.500 Crores, 2.00% for the next Rs.250 Crores, and so on, with the TER reducing by 0.05% for every increase of Rs. 5,000 Crores in daily net assets.

In addition to the Large Cap Fund, Mirae Asset also offers other investment options, such as the Mirae Asset Large & Midcap Fund, which provides exposure to both large-cap and mid-cap stocks, and the Mirae Asset Flexi Cap Fund, which invests across large-cap, mid-cap, and small-cap stocks.

Frequently asked questions