Thread by @FincademyIn

Mirae Asset Emerging Bluechip Fund has a consistent record of delivering superior returns.😇

Here is our review about this scheme 🧵👇

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The Fund was launched in July 2010 and has a track record of over 11+ years now.

Scheme Type: Open ended equity fund

Scheme Category: Large & Mid Cap

It was a Mid Cap oriented fund since inception till the SEBI recategorization kicked in. This scheme was repositioned as Large and Midcap fund in 2018. The reasons for these changes are beyond the scope of this thread.

As per the regulations, Large & Mid Cap category schemes have to invest at least 35% of the corpus in Large Caps & another 35% in Mid Caps. (70% of total portfolio in Top 250 companies). They have the flexibility to invest the remaining 30% as per their asset allocation pattern.

Objective of the Fund:

To give your investments the potential stability of large caps and the growth potential of meticulously selected mid caps that could well become tomorrow’s large cap companies.

Asset Allocation is as follows:

Fund Managers:

Mr. Neelesh Surana has total experience of 26 years and has been managing the above scheme since Inception.
He also manages Mirae Asset Tax Saver Fund

Mr. Ankit Jain (since January 2019)

Fund Management Style:

The investment approach is bottoms up approach: driven by value investing, in growth oriented businesses and is aimed at participating in high quality businesses upto a reasonable price and holding the same over an extended period of time.

Benchmark:

The performance of the scheme is pegged against Nifty Large Midcap 250 TRI

Trailing returns:

Trailing returns are the returns generated over a given period. It can be the year to date (YTD), one year, three years, and so on. These are also called point to point returns. Trailing returns of Mirae Asset Emerging Bluechip Fund are👇

The fund has been able to generate higher than benchmark returns on a consistent and long-term basis.

Rolling returns:

Rolling returns show you how a fund has performed consistently over a long period of time. Usually, a three-year or a five-year return should be looked at to judge the consistency.👇

Scheme has rarely given negative return for a 3 year holding period & has never given negative returns for any holding period of 5 or 10 years.

This can be considered as a good & consistent performance for an equity fund.

Investment details:

Lumpsum & Additional investments are not allowed in this scheme right now. 😱😱😱

Maximum SIP Investment: Rs. 2500 per month (PAN Based) 😟😟😟

Our take on this scheme:

The fund has been able to beat it's benchmark consistently and had fallen less in recent drawdown of March 2020.

Equity funds are meant for long-term horizon & this fund has never given a negative returns for any 5 year holding period.

An investor having investment horizon of 5 years & above can consider this scheme in his portfolio.

Few things to consider:

The fund manager has been with the scheme since inception & has done exceedingly well. Any change in fund manager could impact the performance of scheme going forward.

The fund has also stopped taking fresh inflows in form of lumpsum or additional investments since 2016 and has also restricted the SIP amount to Rs. 2500/month.

This restriction has been placed to ensure the fund size doesn't grow too big to make it difficult for the fund manager to deploy &keep generating such good returns. An investor who wants to invest big amount won't be able to do so due to above restrictions.

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