Introduction of Mirae Asset Midcap Fund – Regular Plan – Growth
Mirae Asset Midcap Fund – Regular Plan – Growth is a Mid Cap mutual fund scheme from Mirae Asset Mutual Fund. This fund has been in existence for over 2 years since, launched on 08/07/2019. It has Rs. 6,195 Crores worth of Assets Under Management(AUM) as of August 2021 and is categorized as a medium-sized fund. The fund has an expense ratio of 1.89%.
The regular growth plan returns of the last 1 year are 80.57% and delivered 39.91% average annual returns since launch. The fund has doubled the money invested in it every 2 years. The majority of the fund’s money has been invested in Financial, Healthcare, Engineering, Automobile, FMCG sectors. The fund’s top 5 holdings are in Axis Bank Ltd, Federal Bank Ltd, Bharat Electronics Ltd, Jindal Steel & Power Ltd, State Bank of India.
1. The Net Asset Value(NAV) of Mirae Asset Midcap Fund is Rs. 20.8400 for its Regular plan as of 04 October 2021.
2. The absolute returns over different periods are 81.45%(1year), 103.79%(2 years), and 108.40%(since launched). The category returns for the same time duration are 69.90%(1year), 38.16%(2years), and 20.41%(since launched).
3. The fund currently holds Assets under Management(AUM) worth Rs. 6195.2 crore as of August 2021.
4. The expense ratio of the fund is 1.89% for the Regular plan as of August 2021.
5. Mirae Asset Midcap Fund Regular Plan shall attract an Exit Load of 1% if redeemed within 1 year(Nill after 1 year).
6. Minimum investment required is Rs. 5000. Whereas, minimum additional investment is Rs. 1000 and the Minimum SIP investment is Rs. 1000.
Investment strategy & Benchmark
The investment objective of the scheme is to provide long-term capital appreciation from a portfolio that invests predominantly in Indian equity and equity-related securities of midcap companies.
The fund manager may also participate in other Indian equities and equity-related securities for optimal portfolio construction at different times. It is benchmarked against the NIFTY Midcap 100 Total Return Index(TRI).
Asset allocation of Mirae Asset Midcap Fund – Regular Plan – Growth
1. The asset allocation of the fund comprises around 99.59% in equities, 0.0% in debts, and 0.41% in cash & cash equivalents.
2. While the top 10 equity holdings accumulate around 32.27% and the top 5 sectors constitute around 17.61% of the fund’s assets.
3. The fund invests across market capitalizations around 26.03% in giant & large-cap companies, 63.81% in mid-cap, and 10.16% in small-cap companies.
I. No of stocks – 52.
II. Top 10 Stocks – 32.27%.
III. Top 5 Stocks – 17.61%.
IV. Price-Book(P/B) ratio – 2.85.
V. Price-Earnings(P/E) ratio – 20.48.
Top 10 Stocks
I. Axis Bank – 3.69%.
II. The Federal Bank – 3.61%.
III. Bharat Electronics – 3.59%.
IV. Jindal Steel & Power – 3.53%.
V. State Bank of India – 3.20%.
VI. Mphasis – 3.18%.
VII. SRF – 3.06%.
VIII. Voltas – 2.99%.
IX. Bharti Airtel – 2.73%.
X. Shriram Transport Finance Company – 2.71%.
Details of Mirae Asset Midcap Fund – Regular Plan – Growth
I. NAV – Rs. 20.84 (as of October 2021).
II. IDCW – Rs. 20.83.
III. Returns – 39.91%(since launched in July 2019).
IV. Benchmark – NIFTY Midcap 100 TRI.
V. Risk – Very High.
VI. Type – Open-ended.
VII. Asset Under Management(AUM) – Rs. 6,195 Crores(as of August 2021).
VIII. Expense ratio – 1.89%(as of August 2021).
IX. Turnover – 53%.
Minimum investment – Rs. 5000.
Minimum additional investment – Rs.1000.
Lock-in period – Not applicable.
Minimum STP investment – Rs.1000.
Minimum SWP investment – Rs.1000.
Exit load – 1% for redemption within 365 days, Nill after 365 days.
Minimum withdrawal – N/A.
SIP investment – Rs.1000 (Minimum).
Minimum no of cheque – 5.
1. Gains over Rs. 1 lakh are taxed at a rate of 15% (Short term Capital Gain Tax or STCG) if units are redeemed within 1 year of investment.
2. No tax is to be paid as long as you continue to hold the units.
3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long term Capital Gain Tax or LTCG). Any cess/surcharge is not included.
4. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.
1. Dividends are added to the income of the investors and taxed according to their respective tax slabs.
2. Further, if an investor’s dividend income exceeds Rs. 5,000 in a financial year, the fund house also deducts a TDS of 10% before distributing the dividend.
Who should invest in Mirae Asset Midcap Fund – Regular Plan – Growth
The fund is suitable for investors who are willing to invest for a minimum period of 3-4 years or more in expectation of high returns. Investors should be prepared for the possible losses as this fund invests in mid-cap companies.
So, compared to funds that invest in larger companies, mid-cap funds tend to fall more when stock prices fall. So, while investors can expect higher returns in the long term, there will be also ups and downs along with.
Mr. Ankit Jain is currently managing the Mirae Asset Mid Cap Fund. He is a B.Tech(ICT), MBA(Finance), and joined Mirae Asset Mutual Fund (September 2015) as a Research Analyst.
Previously, he worked with Equirius Securities Pvt Ltd, Infosys Ltd, and gathered more than 5 years of professional experience keeping Investment Analysis and Fund Management as primary responsibilities.
Mirae Asset Investment Managers (India) Pvt Ltd.
Address – Unit No.606 – 6th Floor, Windsor Building – Off. CST Road, Kalina, Santacruz (East), Mumbai – 400098.
Call – 022-67800301 / 1800-2090-777.
E-mail – [email protected]
Website – http://www.miraeassetmf.co.in