Mirae Asset Emerging Bluechip Fund: A Top-Notch Investment Option

Investors have always had difficulty in picking one among the large-cap funds and mid-cap funds. A question that bamboozles their mind is - which fund is ideal for investment? We all are well aware that mid-cap funds are proven to give high returns. Therefore, an aggressive investor will always prefer mid-cap funds to large-cap funds in his basket of equity funds. As, we often get confused while selecting the best mid-cap funds, experts suggest that the investors can select a portfolio having mid-cap stocks precisely filtered on their future growth and capability of becoming the next bluechip. Going with the given philosophy, one such mid-cap equity fund, administered by Mirae Asset Mutual fund, is labeled as Mirae Asset Emerging Bluechip Fund.

Overview of Mirae Asset Emerging Bluechip Fund-Regular Plan Growth:

It is an open-ended equity scheme that provides investors with an opportunity to invest in the emerging companies that have the potential of becoming tomorrow’s bluechip companies. The scheme tends to single out those companies which are not a part of the top 100 stocks by market capitalization but possess market capitalization of at least Rs.100 cr during the investment. Being a mid-cap fund, it is also exposed to large and small-cap companies that can grow in future and bring diversification in the portfolio.

Investment Strategy:

Fund’s investment approach is centered on investing in high quality businesses that currently have reasonable price and will hold the same for a considerable period of time. Its investment strategy comprises of four vicinities as described below:

• Business Selection- It gathers only those businesses in the bag that possess scalability and sustainable competitive advantage. This procedure is carried out by evaluating the factors such as earnings growth, ROI, and cash generation of the companies.
• Management- Fund focuses specifically on the companies that have a strong corporate governance track record.
• Valuation- Its investment strategy is value-oriented that seeks a decent margin between the actual price and the valuation of the stocks so as to insure safety.
• Portfolio- It zeroes in on only those businesses that have the potential of generating long-term wealth. While constantly monitoring the portfolio, the fund manager follows up the value investing approach.

Fund’s Portfolio Consumption:
Average market capitalization of the fund is Rs.25,783.63 cr with 28.47%, 10.64%, 52.55%, and 8.34% of asset allocated in giant, large, mid, and small sized companies. Top five sectors that the fund has given more weightage for asset allocation are:

Fund’s Performance:
Since its launch in July 09, 2010, the fund has strived to give outstanding returns. After analyzing the performance of the fund from the time it was launched, it’s evident that it has accustomed an average annual return of 22.18%. Also, if we look at the past year-on-year performance of the fund for five years, we can see that it has always cashed in on the opportunity and outperformed its benchmark every time.

It’s crystal clear from the above table that the fund has given benchmark beating returns in all the years. It has taken full advantage of the bull market in 2014 and amassed maximum returns which were almost twice of its benchmark. This outstanding performance of the fund has let it hold onto its five-star rating on Value Research and Morningstar.

Why Should You have This Fund in Your Basket?
Being a mid-cap fund, it has gone through high volatility, but at the end of the day if you stay invested for a longer time period, you can amass considerable wealth. Fund manager, Mr. Neelesh Surana has efficiently grabbed on to the bluechip companies because of which the fund has outpaced its benchmark and peers in mid-cap space, since the time it was floated in the market.

Read this post to know about Mirae Asset Emerging Bluechip Fund, its investment strategy, and performance in the past five years.