Launch of Mirae Asset Midcap Fund

Mirae Asset Mutual Fund is launching Mirae Asset Midcap Fund, An open ended scheme predominantly investing in Midcap Stocks, on 8th July 2019 and will close for subscription on 22nd July 2019.

Mirae Asset Midcap Fund Framework

  • Aims to Invest at least more than 65% in Midcaps and remaining will be invested across Large caps and Small Caps (based on the current market conditions)
  • Aim to build a portfolio of strong growth companies, reflecting our most attractive investment ideas.
  • Aim to create a robust portfolio to avoid concentration risk and liquidity risk.

The Case for Midcap Investing

Mid Caps – Recent correction a buying opportunity

The difference between Nifty-50 Vs Nifty Midcap 1 Year Rolling Returns is almost 14% at current levels which gives us a good entry point into the Midcaps now.

 

Midcap Performance Across Market Cycles

Thus, it can be inferred that Midcap stocks, as measured by the Nifty Midcap 100 TRI Index, have generally underperformed during Crisis and Slowdowns. Though longer inverted time horizon typically yielded in better returns for Midcaps v/s Largecap.

 

Is There a Compelling Case to Invest in Midcaps Today?

Nifty Midcap earning expected to be steady

Nifty Midcap Earnings expected to grow at steady rate over next few years. Earnings have grown by 5.30%, 8.00%, 8.00% for Midcap stocks over the past 3,5, 10 Years.

 

Our Observation & Recommendation :  In the present Market Scenario, replete with uncertainty, we recommend that –

  • Risk Return trade-off is likely to be favorable in a Mid-cap strategy. The recent movements in Equity Markets is Conducive for Investing in Mid Cap at this juncture
  • Experienced Fund Management Team.
  • Also the Fund Manager will devise the Portfolio Afresh in 1 – 2 months, capturing the Volatility.

Performance of Equity Schemes of Mirae Asset Mutual Fund

Data as on June 30, 2019 Returns(%)
3 Month 6 Month 1 Year 2 Years 3 Years 5 Years 6 Years 7 Years 10 Years
Mirae Asset Tax Saver Fund 2.42 8.03 12.21 11.25 18.66
Mirae Asset Emerging Bluechip Fund 1.53 7.76 13.50 9.19 17.17 20.08 27.35 24.81
Mirae Asset Large Cap Fund 1.87 8.26 12.12 11.07 15.44 14.41 19.69 18.38 17.73
Mirae Asset Hybrid Equity Fund 2.15 7.67 11.81 10.01 13.06

 

 

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Author: Midas Finserve

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