Is it good to invest in Mirae Asset MF?

Is it good to invest in Mirae Asset mutual fund?

- M Harikrishna, Srikakulam

Mirae Asset Large Cap Fund is an open-ended equity scheme predominantly investing across large-cap stocks. The fund aims to allow management to invest in large-cap Indian stocks amongst the top 100 companies by market capitalisation. As per the Mirae Asset Large Cap Fund's investment strategy, the fund invests 80 per cent in the top 100 large-cap stocks (big companies by market capitalization). The fund aims to combine the consistency of large caps with few conviction midcap ideas up to a max of 20 per cent. Mirae Asset Large Cap Fund scheme's benchmark index is NIFTY 100. Large-cap funds provide inflation-beating growth over the long term and are suitable for investment objectives with a duration of 10-15 years or longer. Like any other mutual fund, the scheme does not assure or guarantee any returns. The investment objective of the scheme is to generate long-term capital appreciation by capitalizing on potential investment opportunities by predominantly investing in the equities of large-cap companies.

Mirae Asset Large Cap Fund scheme was launched on April 4, 2008, and the net AUM (Assets Under Management) in April 2008 was Rs 114 crore. Currently, the scheme's net AUM is Rs 32,850 crore. 'Assets Under Management' refers to the value of assets managed by the fund. AUM is the total market value of the investments that a mutual fund scheme's fund manager manages on behalf of clients. The NAV of Mirae Asset Large Cap Fund Direct-Growth is Rs. 85.50 as of April 2023. The NAV of Mirae Asset Large Cap Fund - Regular Growth is Rr. 77.50 as of April 21, 2023. The expense Ratio of the Mirae Asset Large Cap Fund Regular plan is 1.53 per cent while that of Mirae Asset Large Cap Fund Direct plan is 0.50 per cent. Mirae Asset Large Cap Fund delivered a CAGR return of 14.75 per cent over the last 15 years.

NAV, or Net Asset Value, is the total value of assets minus all the liabilities of a fund, such as a mutual fund or ETF, often shown on a per-share basis. NAV shows what price shares in a fund can be bought and sold. AUM, by contrast, refers to the value of assets managed by an individual or firm, not a fund. Unlike NAV, AUM is about the total value of assets being managed rather than expressed on a per-share basis. The Mirae Asset Large Cap Fund has a 15 years track record since its inception. The fund scheme maintained a consistent stock selection and portfolio construction style during the last 15 years. The fund scheme always cherry-picks good quality, well-run, growth businesses with a reasonable margin of safety. The fund scheme keeps a sectoral, well-diversified portfolio at the portfolio level without excess top-down sector calls. The Mirae Asset Large Cap Fund's portfolios are typically built bottoms up through stock selection which is done actively, and this may lead to higher active stock weights.

Mirae Asset Large Cap Fund has the flexibility to invest across sectors and themes. The investment approach is centred around participating in high-quality businesses at a reasonable price and holding the same over an extended period. The scheme tries to identify companies with a sustainable competitive advantage – stocks with solid pricing power and are sector leaders. The fund manager has an optimistic view of banking, financial services, and consumer discretionary sectors, including passenger vehicles, white goods, etc. The fund manager thinks that there is a long runway to growth given the good demographics and the current per capita consumption, which may grow over the medium to long term. The fund has a lion's share allocation to banking, as the fund believes a favourable credit and asset quality cycle, along with reasonable valuations, should support the financial sector. The top 5 sector allocation weightages in ( per cent) as on March 31, 2023 is Banks - 28.03 per cent. IT, ITES, Software - 12.51 per cent, Petroleum Products - 8.06 per cent, Finance - 5.38 per cent, Consumer Durables - 5.35 per cent. The minimum investment amount in The Mirae Asset Large Cap Fund is Rs 5,000 and in multiples of Rs 1 thereafter. The scheme comes with both regular and direct plans. Growth Options and Income Distribution cum Capital Withdrawal (Payout / Reinvestment) options are available. Investors can opt for and utilize various systematic methods: Systematic Investment Plan (SIP), Systematic Transfer Plan (ST P), SWITCH and Systematic Withdrawal Plan (SWP). While investing in mutual funds schemes, one must do thorough research to see if the fund scheme suits one's risk profile, investment objective and financial goals.

(The author is a SEBI licensed Research Analyst. The alumnus of the Indian Institute of Foreign Trade (IIFT), he had held leadership roles at National Geographic, Reliance Radio Television Luxembourg, STAR TV)