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Investors looking for a fund that would identify opportune moments to invest in the right sectors and who are willing to take that extra bit of churn in their portfolio for higher returns can consider investments in Mirae Asset India Opportunities. Over a three-year period, the fund has clocked a compounded annualised return of 16.2 per cent and outpaced its benchmark BSE 200 by 12 percentage points and also bettered funds with a similar theme over the above period.
Although the fund watches out for opportunities in sectors based on the economic conditions, it is equally vigilant in protecting the portfolio during market corrections without moving into cash. Its ability to stay invested irrespective of market movements reflects the fund's conviction in its stock selection.
Its strategy of taking active calls in sectors may depend largely on the fund manager's ability to identify sector trends well ahead of market. Active portfolio management, though, is likely to push up cost for the fund although returns may compensate for the same. . Although the fund invests predominantly in large-cap stocks, given its investment strategy, it may be a good diversifier in the non-core portfolio.
Performance : The fund, over a one-year period, generated an absolute return of 8.5 per cent and outpaced its benchmark BSE 200 by 7.5 percentage points. In the past six months, when CNX Nifty and BSE 200 lost close to 10 per cent of its value, Mirae Opportunities' NAV corrected by 4.6 per cent. The fund's performance could have been even better had it upped its holding in the defensive and top performing consumer non-durables. For a good part of the last one year, the fund allocated less than 4 per cent of its assets to the sector and only recently upped its stake in the sector to 8.3 per cent of the portfolio.
Portfolio Overview : As of May, the fund held 50 stocks and the top ten stocks accounted for 37 per cent of the assets. The top three sectors — banks, software and consumer non-durables — together accounted for 36 per cent of the portfolio. Although the fund has not actively churned stocks in the portfolio, it, nevertheless, diluted its holdings in the stocks. In the past few months, it increased its holdings in Bharti Airtel, Infosys and Tata Steel. The fund is managed by Mr Gopal Agrawal and Mr Neelesh Surana.
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