Launch of Mirae Asset Focused Fund (An Open Ended Scheme)
In our continuous endeavour to update our valued investor about the New Investment Ideas / Theme, we would like to share that, Mirae Asset Mutual Fund has launched Mirae Asset Focused Fund, (An open ended scheme investing in a maximum of 30 stocks intending to focus in large cap, mid cap and small cap category (i.e. Multi-cap) which will close for subscription on 7th May 2019.
Mirae Asset Focused Fund Strategy
Ø Focused approach with investments limited to maximum of 30 stocks.
Ø Flexibility to invest across market capitalization. (Large, Mid and Small Caps)
Ø Aim to build a portfolio of strong growth companies, reflecting our most attractive investment ideas.
Ø Aim to create a robust portfolio to avoid concentration risk and liquidity risk.
How does a Focus Fund aim to generate wealth ?
Ø Aims to identify and invest in high conviction stocks
Ø Optimum Weight Allocation may generate more wealth
Ø Seeks tactical allocations by identifying future trends
Why Focused Fund which can invest across market caps ?
Performance of Mirae Asset Funds
The fund will be managed by Mr. Gaurav Misra, Fund Manager. He is also the Co-Fund Manager of Mirae Asset India Equity Fund along with Mr. Neelesh Surana & Mr. Harshad Borawake.
Our Observations & Recommendations :
Ø Experienced Fund Management Teams both on Equity & Fixed Income fronts.
Ø The recent movements in Equity Markets is Conducive for Investing in Multi Cap at this juncture
Ø We can see the change in valuation gap between Large Cap and Midcap Segments
Ø Depressed earnings artificially boosting the PE multiple for the entire Midcap index
Ø Risk return trade-off is likely to be favorable in a multi-cap strategy
Ø Good ideas can do better irrespective of its sector/theme/size