The Mirae Asset Emerging Bluechip Mutual Fund is a mutual fund many investors have on their radar when looking to invest. The performance of this fund over the years and its emphasis on investing in both large-cap and mid-cap companies have drawn attention to it. Is it worthwhile, nonetheless, to include it in your portfolio? Let’s break it down.
Table of Contents
Overview of Mirae Asset Emerging Bluechip Mutual Fund
The Mirae Asset Large & Midcap Fund, formerly known as the Mirae Asset Emerging Bluechip Fund, is a well-known equity mutual fund focusing on large and mid-cap firms in India.
This fund was launched on July 9, 2010, and its objective is to provide long-term capital appreciation by concentrating on firms of superior quality with substantial growth potential. This makes it one of the most popular equity mutual funds.
Investment Strategy
The fund prioritises value investing in companies with growth potential, utilising a bottom-up approach to investment strategy. Large-cap and mid-cap equities must comprise at least 35% of the portfolio, providing a balanced exposure to established and growing businesses.
This approach seeks to identify businesses that have the potential to become blue-chip companies. The fund has been effective in keeping its preference for large-cap equities, which results in stable returns, particularly as the fund’s corpus grows over time.
Performance Metrics
Since its launch, the Mirae Asset Emerging Bluechip Mutual Fund has outperformed the Nifty Large Midcap 250 Index, a benchmark, with steady, outstanding results. The fund has produced an annualised return of roughly 21.35% as of September 2024, demonstrating its capacity to handle market volatility and give investors significant returns.
For example, an investor who had begun a systematic investment plan (SIP) with ₹1,000 every month in 2014, would have amassed ₹29.3 lakh instead of ₹3.62 lakh by September 2024.
Expense Ratio and Investment Minimums
The fund is competitive in its category, with an expense ratio of 1.52%. For lump sum investments, the minimal initial investment is ₹5,000, making it accessible to a broad spectrum of investors. Additionally, to manage its increasing assets under management (AUM), the fund has particular limitations on lump sum investments.
The fund now only permits SIPs, with new registrations limited to ₹2,500 per month. This precaution prevents excessive inflows from negatively impacting the fund’s performance.
Risk Profile
The Mirae Asset Emerging Bluechip Mutual Fund is a “Very High” risk fund, meaning it is best suited for investors who can take on more risk. Although the fund’s large-cap stock allocation helps to reduce volatility, investors should still be ready for short-term swings in the value of their investment.
Based on its past performance, the fund has outperformed its peers and offered some protection against downside during market downturns.
Fund Management
Neelesh Surana, who led the fund since its founding, and Ankit Jain, who joined in 2019, oversee it. Their knowledge and experience are essential to the fund’s success and strategic choices.
The management group uses a systematic approach to investing, concentrating on premium companies that are reasonably priced and keeping them for a long time.
Who Should Consider This Fund?
Investors who are comfortable with moderate risk and have a medium to long-term investment horizon (at least 4-5 years) might consider this type of fund. It is suitable if you’re an aggressive investor.
On the other hand, you might want to think about more conservative options, including debt funds or large-cap-only equity funds, if you have a limited tolerance for risk.
Conclusion
In conclusion, for investors who want exposure to both large-cap and mid-cap Indian companies, the Mirae Asset Emerging Bluechip Mutual Fund offers a substantial investment opportunity. It has continuously beaten its benchmark thanks to a solid track record of success and a disciplined investing strategy.
Please note: This is not a recommendation, please do your own due diligence before investing.
