Emerging Bluechip Fund: Is Mirae Asset Worth The Investment?

Mirae Asset Large & Midcap Fund is an open-ended equity scheme that invests in both large cap and mid cap stocks. The fund offers investors the opportunity to participate in the growth of emerging companies that have the potential to become tomorrow's blue-chip companies. With a minimum SIP amount of ₹1,000, the fund has generated a return of 14.44% in the last year, 49.92% in the last three years, and 1102.97% since its launch. However, investors should be aware that their principal investment in this fund is at moderately high risk, and there is an exit load of 1% if redeemed within one year.

Mirae Asset Large & Midcap Fund: Growth and Direct options

Mirae Asset Large & Midcap Fund is an open-ended equity scheme that invests in both large-cap and mid-cap stocks. The fund aims to generate income and capital appreciation by investing in a diversified portfolio of Indian equities and equity-related securities of large-cap and mid-cap companies. The fund has been in existence for over 11 years and has generated average annual returns of 23.44%-23.46% since its inception. It has doubled the money invested every four years.

The fund has a moderately high-risk profile and is suitable for investors with a long investment horizon of at least three to five years. The suggested minimum investment tenure is three to five years. The fund has a total expense ratio of 2.25% for the first Rs.500 Crores, 2.00% for the next Rs.250 Crores, and so on, with a balance of assets at 1.05%. The expense ratio of the direct plan is 0.58%-0.59%. The fund has generated higher returns for every unit of risk it takes, with a return/risk ratio of 1.2.

The fund has invested the majority of its money in the Financial, Services, Automobile, Healthcare, and Technology sectors. Its top holdings include HDFC Bank Ltd., Axis Bank Ltd., State Bank of India, Larsen & Toubro Ltd., and ICICI Bank Ltd.

The fund has a minimum SIP instalment amount of Rs. 99 and offers Growth and IDCW (Payout/Reinvestment) options. It has a Regular Plan and a Direct Plan with separate NAVs. The Direct Plan does not require any additional fees or commission to a mutual fund broker/distributor, resulting in a lower expense ratio and higher returns for investors.

The fund's ability to deliver consistent returns is lower than most funds in its category, and its ability to control losses in a falling market is below average. However, it has outperformed its benchmark over the last 10 years.

In summary, the Mirae Asset Large & Midcap Fund offers a moderately high-risk investment opportunity with potential for long-term capital appreciation. It has generated average annual returns of over 23% since its inception and has a lower expense ratio for the Direct Plan. However, its consistency in returns and ability to control losses are below average. Investors should carefully consider their risk appetite and investment horizon before investing in this fund.

Investment approach: Bottoms-up, value investing in growth-oriented businesses

The Mirae Asset Large & Midcap Fund (formerly known as the Mirae Asset Emerging Bluechip Fund) takes a bottom-up approach to investing. This means that the fund focuses on analysing individual stocks and de-emphasises the significance of macroeconomic and market cycles. In other words, the fund managers focus on a specific company and its fundamentals, rather than the industry and economy as a whole.

The fund's investment approach is driven by value investing in growth-oriented businesses. This means that the fund managers seek out high-quality businesses with strong growth potential and hold these stocks over an extended period. The fund aims to identify emerging companies that have the potential to become tomorrow's blue-chip companies.

The fund invests 35-65% in large-cap companies (top 100 companies by market capitalisation) and 35-65% in mid-cap companies (companies ranked 101st to 250th by market capitalisation). This combination of large and medium-sized companies provides a reasonable degree of flexibility to the fund management team, allowing them to invest in companies of different sizes depending on where they expect maximum gains.

The bottom-up approach assumes that individual companies can perform well even in an underperforming industry. This strategy often involves long-term, buy-and-hold investment strategies that rely on fundamental analysis. By taking a bottom-up approach, investors can gain a deep understanding of a single company and its stock, providing insight into an investment's long-term growth potential.

Investment tenure: Suggested investment horizon of 3-5 years

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 has a suggested investment horizon of 3-5 years and is suitable for investors with long investment horizons of at least 3 years or longer.

The fund's 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. It offers investors the opportunity to participate in the growth of emerging companies that have the potential to become tomorrow's blue-chip companies.

The fund 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. This flexibility is advantageous for fund investors. However, it is important to note that the fund has a Moderately High' risk profile, and investors should be prepared for potential losses.

When considering an investment in the Mirae Asset Emerging Bluechip Fund, it is recommended to review the fund's portfolio, risk factors, historical performance, and expense ratio to ensure alignment with your investment goals and risk tolerance.

Risk profile: Moderately high risk, subject to market conditions

The Mirae Asset Large & Midcap Fund (formerly known as the Mirae Asset Emerging Bluechip Fund) is considered to have a moderately high-risk profile. This means that investors should understand that their principal investment in this fund is at moderately high risk and subject to market conditions.

The fund's returns are subject to market risk, and investors may experience negative returns depending on market conditions. The fund invests in a combination of large and medium-sized companies, providing flexibility to the fund management team to allocate investments across different market capitalisations. This flexibility allows the fund managers to invest in companies of different sizes, depending on where they expect maximum gains.

The fund's investment approach is driven by value investing in growth-oriented businesses. It aims to participate in high-quality businesses at a reasonable price and hold them over an extended period. The fund gives investors the opportunity to participate in the growth of emerging companies that have the potential to become tomorrow's blue-chip companies.

While the fund offers the potential for long-term capital appreciation, investors should be aware of the associated risks. The fund's performance may be volatile, and there is no guarantee of positive returns. Therefore, it is recommended that investors have a long investment horizon of at least three years or longer and a moderately high-risk appetite.

Advantages: Capital appreciation, exposure to large and midcap stocks, agility through midcaps

The Mirae Asset Large & Midcap Fund (formerly known as the Mirae Asset Emerging Bluechip Fund) offers investors a range of advantages, including capital appreciation, exposure to large and midcap stocks, and agility through midcaps.

Firstly, the fund offers capital appreciation potential, aiming to generate income and capital appreciation by investing in a diversified portfolio of Indian equities and equity-related securities. The fund's performance has been strong, outperforming its benchmark over the last 10 years and delivering returns of 14.44% in the last 3 months, 34.51% in the last year, 49.92% in the last 3 years, and 1102.97% since its launch.

Secondly, the fund provides exposure to both large and midcap stocks, offering a combination of stability and growth potential. Large-cap stocks offer lower risk and volatility, while midcap stocks have the ability to deliver higher returns over the long term. The fund invests 35-65% in large-cap companies (top 100 by market capitalization) and 35-65% in mid-cap companies (101st to 250th by market capitalization).

Lastly, the fund offers agility through its investment in midcap stocks. Midcap stocks provide the fund management team with flexibility, allowing them to invest in companies with strong growth potential and the ability to become tomorrow's blue-chip companies. The fund's bottom-up investment approach focuses on value investing in growth-oriented businesses, holding them over an extended period to capture their long-term growth potential.

Overall, the Mirae Asset Large & Midcap Fund offers a well-diversified approach to investing in Indian equities, providing a balance of stability and growth potential through its exposure to large and midcap stocks, while also seeking capital appreciation through its investment strategy.

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