Mirae Emerging Bluechip: Is It the Top Pick for Large and Mid Cap Investments?
The Mirae Asset Emerging Bluechip Fund: A Goldmine for Growth Investors
Belonging to the Large & Mid Cap category, this fund is a hot ticket in the investment world. With a whopping 23,500 crore AUM at the end of August 2022, it outshines the competition, leaving Canara Robeco Emerging Bluechip in the dust with a paltry 14,900 crore AUM. So, what's the secret sauce behind this fund's success? Let's dig a little deeper to understand its winning formula.
The Mirae Asset Emerging Bluechip Fund: A Decade of Dominance
If you had started a SIP of Rs 5,000 with this fund at its launch in 2010, by August 2022, you'd have amassed a cool Rs 29.3 lakh. That's compared to just Rs 20.4 lakh if you'd invested in the benchmark. The graphic below showcases the impressive growth of this fund versus the benchmark.
Since its inception in 2010, the Mirae Asset Emerging Bluechip Fund has been the cream of the crop in the Large & Mid Cap category for the past 10 years and the third-best fund across all diversified equity fund categories. With an annualized return of 24%, it consistently outperformed its category and benchmark year after year (see the table below).
Stocks Held since at least 10 Years
*Data as of August 31, 2022
% Current Allocation*
Investment Strategy of The Mirae Asset Emerging Bluechip Fund
The fund's primary objective is to invest in quality companies, and here are a few aspects of its investment strategy:
ICICI Bank Ltd.
- Buy-and-Hold Strategy: The fund adopts a long-term buy-and-hold approach. In fact, 39 stocks in the fund's portfolio have been held for at least 5 years, with three even since inception.
- Investing in High-Growth Companies: The fund's focus is on finding high-growth companies that are available at a reasonable price and holding them for the long term.
5.42
Stability and Growth: The Perfect Blend
As a Large & Mid Cap fund, the Mirae Asset Emerging Bluechip Fund must invest at least 35% each in large-cap and mid-cap companies. Initially, it was mid and small cap-heavy, but as the market evolved and its corpus grew, the fund shifted towards a larger allocation in large-cap stocks, ensuring stability in returns.
IPCA Laboratories Ltd.
| | || --- | --- || Stocks Held since at least 10 Years | % Current Allocation* || ICICI Bank Ltd. | 5.42 || IPCA Laboratories Ltd. | 1.05 (0.93) || Hindustan Petroleum Corporation Ltd. | 0.32 |
1.05 (0.93)
*as of August 31, 2022
Should You Invest In The Fund?
Hindustan Petroleum Corporation Ltd.
With a stellar track record of returns, the Mirae Asset Emerging Bluechip Fund presents an attractive investment opportunity. Its 40% allocation to mid and small cap stocks may introduce some volatility, but the risk seems worth it for the potential returns.
0.32
However, there's a catch. This fund doesn't accept lump sum investments and has restricted fresh SIP investments to Rs 2,500 a month since November 6, 2020. The fund house enacted these restrictions to preserve its investment strategy and maintain the fund's performance. So, diversify your portfolio to achieve your financial goals.
Insight: The consistent outperformance of the Mirae Asset Emerging Bluechip Fund is a testament to its disciplined, research-driven investment strategy focused on emerging growth opportunities and risk management. Its dynamic, long-term approach enables it to capture superior growth potential while minimizing volatility, making it a preferred choice for investors seeking higher returns in the Large & Mid Cap category.
With a strong focus on investing in high-growth companies, the Mirae Asset Emerging Bluechip Fund's strategies include adopting a long-term buy-and-hold approach and finding quality companies that are available at reasonable prices. As a successful Large & Mid Cap equity fund, it offers an attractive investment opportunity for growth-oriented investors in the finance sector. Despite some restrictions on lump sum investments and SIPs, its consistent outperformance and disciplined, research-driven strategy make it a preferred choice for those seeking higher returns in this business category.
