Mirae Asset Multicap Fund: A diverse market opportunity

Mutual funds have emerged as a preferred investment avenue for investors in the dynamic landscape of the Indian economy. Recognizing the potential in the current market scenario, Mirae Asset Mutual Fund has recently introduced the Mirae Asset Multicap Fund. This, open-ended equity scheme allows investors to diversify their investment across various market capitalizations, i.e- large-cap, mid-cap, and small-cap stocks.

Managed by experienced fund manager Ankit Jain, the fund's benchmark index is the NIFTY 500 Multicap 50:25:25 TRI. The NFO (New Fund Offer) subscription is available from July 28, 2023 to August 11, 2023,

Understanding the Mirae Asset Multicap Fund

The Mirae Asset Multicap Fund may be an attractive choice for long-term investors, providing long-term capital appreciation from a portfolio investing predominantly in Indian equity and equity related securities of large cap, mid cap and small cap companies.

Investment Strategy

The fund divides its assets into three categories:

a) Large-cap investments (25-50% allocation) target top 100 stocks with mature businesses, lower risk, and dominant positions, offering less volatility than mid and small-cap stocks.

b) Mid-cap investments (25-50% allocation) comprise 150 stocks (101st to 250th) by market capitalization, representing emerging businesses which may offer reasonable valuations.

c) Small-cap investments (25% allocation) include stocks ranked 251st and beyond by market capitalization, featuring young and scalable businesses which may have higher growth potential, although with higher risk and greater alpha-generating potential.

d) 25% of the investments will be allocated strategically, taking advantage of opportunities by distributing funds across different market capitalizations.

Features of the scheme

The following are the features of Mirae Asset Multicap Fund -

1. Regular Plan and Direct Plan: The Mirae Asset Multicap Fund will be available to investors in both Regular and Direct Plans. The Direct Plan enables investors to invest directly in the scheme, avoiding distributor commissions
2. Minimum Additional Purchase Amount: Investors can invest under the Scheme during the New Fund Offer period and ongoing offer period with a minimum investment of Rs.5,000/- and in multiples of Re. 1/- thereafter.
3. Economic Outlook and the Fund's Growth Potential: The global economic environment may face turbulence, but the Indian economy continues to exhibit impressive growth. .

Benefits of Multicap Investing (Mirae Asset Multicap Fund)

1. Advantages of Diversification: Investing in a multicap fund offers a diversified portfolio of stocks spanning different market segments. This diversification may mitigate risks associated with investing in a single market cap category, as each segment responds differently to economic conditions and market cycles.
    
2. Potential for Alpha Generation: By including mid-cap and small-cap stocks in the portfolio, the fund aims to capture higher alpha. While small-cap stocks carry higher risk, they also possess the potential for significant growth, providing an opportunity for alpha generation.
    
3. Expert Fund Management: The Mirae Asset Multicap Fund will be managed by mutual fund experts with a deep understanding of the Indian investment market. Their expertise and strategic decision-making will be crucial in achieving the fund's investment objectives.
    
4. Dynamic Allocation: The tactical allocation of 25% of the fund's assets allows the fund manager to adjust the portfolio's risk exposure based on changing market conditions.

Conclusion

The launch of Mirae Asset Multicap Fund brings a well-rounded investment option to Indian investors, offering exposure to various market segments through a strategic and dynamically allocated portfolio.

DISCLAIMERS & PRODUCT LABEL:
 

NSE Indices Ltd Disclaimer: NSE INDICES LIMITED do not guarantee the accuracy and/or the completeness of the Index or any data included therein and NSE INDICES LIMITED shall have not have any responsibility or liability for any errors, omissions, or interruptions therein. NSE INDICES LIMITED does not make any warranty, express or implied, as to results to be obtained by the Issuer, owners of the product(s), or any other person or entity from the use of the Index or any data included therein. NSE INDICES LIMITED makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein. Without limiting any of the foregoing, NSE INDICES LIMITED expressly disclaim any and all liability for any claims, damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages

Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Investment Managers (India) Private Limited (AMC); Sponsor: Mirae Asset Global Investments Company Limited.

Views expressed cannot be construed to be a decision to invest.

For further information about other schemes (product labelling and performance of the fund) please visit the website of the AMC: www.miraeassetmf.co.in

Please consult your financial advisor or mutual fund distributor before investing

The Product Labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.

Mirae Asset Multicap Fund is suitable for investors who are seeking (Multi Cap - An open-ended equity scheme investing across large cap, mid cap and small cap stocks)-

• To generate long term appreciation/income.

•Investments predominantly in equity and equity related securities of large cap/mid cap small cap companies.

•Investors should consult their financial advisors if they are not clear about the suitability of the product

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

References:

https://www.mordorintelligence.com/industry-reports/india-mutual-fund-industry

https://docs.google.com/document/d/1G49PZVJ_FhiAXsdGQCP7Rmp0GN6BtT-S/edit

https://scripbox.com/mf/advantages-of-mutual-funds/

(Above mentioned article is a sponsored feature. This article is a paid publication and does not have journalistic/editorial involvement of IDPL, and IDPL claims no responsibility whatsoever)