Mirae Asset India Equity Fund: A modest-risk, high-returns option

A diversified portfolio has helped the fund beat its benchmark across market cycles

Mirae Asset India Equity is a fund with a long track record of consistent delivery of superior returns.

Investors with long-term goals and moderate risk appetite can invest in the fund.

It has delivered better returns than its benchmark, S&P BSE 200, in almost all the years since its inception.

It has capped losses during market downturns and delivered higher returns during rallies.

The fund has a multi-cap mandate, but has been investing a major chunk of its corpus (more than 80 per cent) in large-cap stocks.

Mirae Asset India Equity has outperformed its benchmark over five- and 10-year timeframes by 4-6 percentage points. While the fund has underperformed the BSE 200 index over the past one year, the daily one-year rolling returns of the fund have been better than the benchmark almost all the time over the past three years.

It can be a suitable addition to the core portion of an investor’s portfolio. Exposure to the fund can be taken through the SIP route, with a time-frame of 5-7 years, to cater to long-term goals.

Portfolio moves

Portfolio diversification has ensured that the fund delivers higher returns than its benchmark across market cycles.

The fund has allocated more than 50 per cent of its corpus to sectors such as banks, consumer non-durables, software, automobiles and finance.

HDFC Bank has remained a favourite stock with an allocation of more than 5 per cent. Stocks picks such as Raymond, HUL, Voltas and Info Edge (India) have worked well for the fund in the past one year.

But stocks such as Lupin, Tata Motors, Sun Pharmaceutical and Indian Oil Corporation have pulled down the overall returns during the same time period.

The fund has added stocks of Mahindra & Mahindra, Marico, Max Financial Services and Bank of Baroda in 2018.

By ensuring a large weightage for large-cap stocks, Mirae Asset India Equity has managed to considerably lower risk levels for investors.

In the last 10 years, it has delivered top-notch returns of 16.8 per cent annually, placing it among the top few funds in its category.

SEBI guideline changes

Mirae Asset India Opportunities Fund was renamed Mirae Asset India Equity fund on March 1, 2018. The mandate continues to be that of a multi-cap (large- and mid-cap) fund. The renamed scheme is likely to retain its large-cap bias in the future.

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