Consistent performance of the existing equity mutual fund schemes at Mirae has prompted financial planners to suggest the Mirae Asset Focused Fund to investors whose portfolios merit a focused strategy.
The new fund offer (NFO) at Mirae is currently open and it closes on May 7. The fund will be managed by Gaurav Misra and investors can put in a minimum of Rs 5,000. The fund will be benchmarked against the NSE 200 TRI.
Equity mutual fund schemes from Mirae Asset MF have been among the best performing over the past three years.
While Mirae Asset Tax Saver has given annualised returns of 21.97% over three years, Mirae Asset Emerging Bluechip and Mirae Asset India Equity have returned 20.13% and 17.57%, respectively. All these three schemes lead the returns in their respective categories.
“The fund management team has demonstrated its ability by picking the right stocks in the portfolio, which has led to higher returns; so investors whose portfolio merits a concentrated exposure could allocate to this fund,” says Rupesh Bhansali, head (distribution), GEPL Capital.
This new fund offer in the focused category will invest in a maximum of 30 stocks. The fund manager will adopt a multi-cap approach and invest across large-cap, mid-cap and small-cap categories and across sectors. Given the current market situation, about 50-60% could go into the large caps, with the balance in mid- and small-caps.
The fund could also invest up to 30% in special situations like turnaround stocks or cyclicals. The fund manager will run a concentrated portfolio with the top 10 stocks accounting for anywhere between 40% and 60% of their portfolios.
Distributors believe focused funds are not meant for first-time investors as portfolios are concentrated and performance could be volatile.
“Large-cap funds have found it difficult to beat benchmarks in the recent past. Funds with a concentrated exposure to large-caps stock have worked well,” says Vidya Bala, head of research, fundsindia.com After the Sebi mandate on categorisation of mutual funds, fund houses are in the process of enhancing their product basket and filling in gaps where necessary.
Mirae Asset MF is enhancing its product basket by launching the Mirae Asset Focused Fund.
Annualised returns (in %)
|Mirae Asset||1 Year||3 Year||5 Year|
|India Equity Fund||9.9||17.6||18.7|
|Emerging Bluechip Fund||6.9||20.1||25.7|