Mirae Asset Investment Managers has announced the withdrawal of the existing temporary suspension on subscription through the Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), switch-ins & lumpsum in Mirae Asset Large and Midcap Fund (‘the Scheme’) and enabling other facilities from August 1, 2024.
The fund will resume accepting subscriptions through Systematic Investment Plans (SIP), Systematic Transfer Plans (STP), switch-ins, and lump-sum investments. Effective August 1, 2024, the Scheme will be open for subscription across all investment modes without any capping while subject to minimum subscription limits as defined under the offer document of the Scheme.
The Mirae Asset Large and Midcap Fund was formerly known as the Mirae Asset Emerging Bluechip Fund. It is an open-ended equity scheme investing in both large-cap and mid-cap stocks.
In November 2020, Mirae restricted subscription in the scheme to Rs 2,500 through monthly SIP, which was increased to Rs 25,000 in October 2023. The AMC noted that since November 2020, we have seen equities scaling new highs with Nifty 50 Total Return Index (TRI) and Nifty Midcap 150 Total Return Index (TRI) rising approximately by 1.2 times and 2.3 times, respectively, as on July 24, 2024
“The decision to lift the existing temporary suspension on subscription through various modes is based on multiple factors, including the expansion of the investment universe, increased market depth and liquidity, and the overall growth in fund size. Since the initial restriction in November 2020, which limited SIP investments to Rs 2,500 monthly (later increased to Rs 25,000 in October 2023), Indian equities have experienced substantial growth. The Nifty 50 Total Return Index (TRI) and Nifty Midcap 150 TRI have risen by approximately 1.2 times and 2.3 times, respectively, as of July 24, 2024,” it said.
The Indian market’s resilience and potential are evident in the surge of investment opportunities, especially within the mid and small-cap sectors. Over the past five years, new listings have significantly increased the number of stocks, expanding the market capitalisation and profit pool of these companies.
Notably, the aggregate market cap of the Nifty Midcap 150 index has increased more than two-fold to Rs 82.5 lakh crore from November 2020 to June 2024, with aggregate profits growing by approximately 142% to Rs 2.1 lakh crore during the same period.
The AMC noted that with strengthening macro environment, it has seen a significant growth in capital markets. There has been significant increase in investment opportunities (no. of stocks) particularly in the mid and small cap space over the past five years through new listings, profit pool and thus, increase in market capitalisation of these companies. There has also been significant increase in market depth and liquidity over the years.
“The significant growth in opportunities and capital markets is reflected in the large and midcap category flows. In FY19-20 the gross flows were Rs 17,834 crores which have risen to Rs 47,440 crs in FY23-24, growing ~2.7 times in this period. The category’s market cap construct of minimum 35% in both large and midcap has allowed absorption of such increased flows without impacting the overall portfolio liquidity significantly. This has given us the confidence to reconsider our subscription limits in the Scheme,” said Swarup Anand Mohanty, Vice Chairman and CEO, Mirae Asset Investment Managers (India).
About the fund
Mirae Asset Large & Midcap Fund Direct-Growth is a notable Large & MidCap mutual fund scheme offered by Mirae Asset Mutual Fund. As of June 30, 2024, the fund’s assets under management (AUM) amount to a substantial Rs 37,846 crores, positioning it as a medium-sized fund within its category.
With an expense ratio of 0.58%, Mirae Asset Large & Midcap Fund Direct-Growth stands out for its cost efficiency compared to the majority of other Large & Midcap funds available. Presently, the fund has reported an impressive return of 39.29% over the last year. Since its inception, it has maintained an average annual return of 23.79%.
Primarily focused on the Financial, Healthcare, Automobile, Energy, and Services sectors, the fund has strategically allocated its investments. When compared to other funds in the same category, it has chosen to limit its exposure in the Financial and Healthcare sectors. Noteworthy is the fact that the fund’s top 5 holdings include renowned companies such as HDFC Bank Ltd., Axis Bank Ltd., Larsen & Toubro Ltd., Reliance Industries Ltd., and ICICI Bank Ltd.