The Rs 5700-crore Mirae Asset Emerging Bluechip Fund, a renowned large and mid cap equity scheme, has relaxed the investment restrictions put about a year back. The fund, which beat the benchmark by 800 bps in five year period, is popular with investors. Let’s quickly take you through the relaxations.
Mirae Asset Global Investments (India) Pvt. Ltd (AMC) has announced that they are accepting fresh SIP registration for 8-year old Mirae Asset Emerging Bluechip Fund (on all its 5 SIP dates) and fresh STP registrations w.e.f Monday, October 22, 2018.
For Systematic Investment Plan, fresh registration through SIP route shall be allowed for a maximum of up to Rs. 25,000/- per each installment through monthly mode for all 5 SIP dates of 1st, 10th, 15th, 21st and 28th of each month before the cut off time of 15:00 hours on any business day. Earlier, this was only available on 10th of each month.
While the fund never talked about it directly, many experts think that the scheme restricted inflows since market valuations had become too high and there was a paucity of investment opportunities. With a sharp and swift correction in equities now undergoing, the fund has eased those restrictions.
The fund is also allowing the Systematic Transfer Plan (STP) under 4 frequencies: 1. Weekly, 2. Fortnightly, 3. Monthly and 4. Quarterly. Investors are requested to note that daily frequency under the STP is not available under the scheme. Earlier, the STP facility was not available under the scheme for any option.
Neelesh Surana is the fund manager of Mirae Asset Emerging Bluechip Fund. His disciplined approach to investing, obsessive focus on quality along with diversification is said to be among the factors that has helped the scheme out-perform markets consistently. It has outdone its benchmark and peers every year since launch.
The fund uses basic criteria of growth, return on capital employed (ROCE) and management track record to select its stock universe.
At present, the fund’s top holdings are HDFC Bank, RIL, ICICI Bank, Kotak Mahindra Bank, Bharat Financial Inclusion, Havells India, Info Edge, Tata Steel, SBI, Divi’s Labs, Tata Global Beverages and Torrent Pharma. It has more than 50 stocks in the portfolio. In terms of risk measures, the fund is number 1 among 20 funds if you look at mean, sharpe ratio, sortino ratio and alpha.
It will be interesting to see how Surana manages the fund in a vicious bear phase like in 2008. So, far the fund has done well and easing restrictions means that the manager is okay with taking more inflows and sees many opportunities to deploy extra funds.