This Rs 10,000 investment in 2008 turned to Rs 49,929 in 2018!
The fund has outperformed the benchmark (S&P BSE 200 TRI) across the past two, three, five seven and 10 years trailing periods and the category (represented by funds ranked in the multi-cap funds category in CRISIL Mutual Fund Rank - June 2018) across all trailing periods.
Launched in April 2008 as Mirae Asset India Opportunities Fund, the scheme was renamed Mirae Asset India Equity Fund subsequent to the reclassification of mutual funds by Sebi. The fund ranked 2 in the multi cap category of CRISIL Mutual Fund Ranking (CMFR) during the two quarters ended June 2018.
Neelesh Surana and Harshad Borawake have been managing the scheme since May 2008 and May 2017, respectively. The investment objective of the scheme is to generate long-term capital appreciation by capitalising on potential investment opportunities through predominantly investing in equities, equity related securities.
Trailing returns
The fund has outperformed the benchmark (S&P BSE 200 TRI) across the past two, three, five seven and 10 years trailing periods and the category (represented by funds ranked in the multi-cap funds category in CRISIL Mutual Fund Rank - June 2018) across all trailing periods.
An investment of Rs 10,000 in the fund on April 04, 2008 (inception of the fund) would have grown to Rs 49,929 (16.67% CAGR) on September 05, 2018 vis-a-vis the benchmark’s Rs 30,102 (11.15% CAGR) and the category’s Rs 38,095 (13.69% CAGR).
SIP returns
A monthly investment of Rs 10,000 via a systematic investment plan (SIP) for 10 years would have grown to Rs 32.11 lakh (XIRR 18.93%). A similar investment in the benchmark would have grown to Rs 25.51 lakh (XIRR 14.61%).
Risk-reward matrix
The fund delivered higher average daily returns over the past three years than the benchmark and peers at the expense of higher volatility than the benchmark.
Portfolio analysis
The fund has invested across market capitalisation with predominant allocation to large-cap stocks. Allocation to large-cap stocks ranged from 73 to 85%, averaging 80% in three years. Exposure to mid- and small-cap stocks averaged 12% and 6%, respectively.
At the sectoral level, top five sectors formed 58% of the fund’s equity portfolio, on average, in three years. Banks dominated the equity portfolio, followed by software, consumer non-durables, auto and petroleum products. The banking sector was primarily driven by HDFC Bank and IndusInd Bank. Other significant contributors were Reliance Industries, Maruti Suzuki and Hindustan Petroleum.
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Banks (27.96%) were the biggest constituent of the fund’s equity portfolio as of July 2018, followed by software (8.86%), petroleum products (8.65%), consumer non-durables (6.04%) and auto (4.77%).
By: CRISIL Research
(Source: DNA Money)
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