FinFloww
FinFloww

@FinFloww

12 Tweets 2 reads Aug 22, 2024
In 2016, Mirae Asset Large and Midcap Fund formerly known as Mirae Asset Emerging Bluechip fund restricted lumpsum investments in the fund
and cap SIP investments at just Rs. 25,000
But the good news is that the limit is removed now!
Thread: why you need to check this fund๐Ÿงต
In the Indian stock market, the Large and Midcap category was introduced by Securities and Exchange Board of India (SEBI) as an investment segment that offers a strategic blend of stability and growth.
This category mandates at least 35% of the assets...
โ€ฆmust be invested in large cap stocks and another 35% in the midcap stocks ensuring a balanced portfolio.
This balance allows investors to benefit from the relative safety of large caps, while also taking advantage of the higher growth potential offered by midcaps.
Investing in the Large & Midcap category in Indian markets makes sense in the present scenario for 2 key
reasons:
1. Indiaโ€™s economy is experiencing robust growth fuelled by rising domestic consumption, ongoing govt reforms and increasing investment in infrastructure.
2. With the ongoing global realignment, large-cap stocks provide a cushion due to their established market presence and consistent cash flows.
Meanwhile, midcaps, despite higher volatility, present
significant growth potential.
And now this popularity is clearly reflected in the significant increase in net flows into large and midcap funds,
โ€“ which surged by 276%, reaching โ‚น2,622.29 Cr in July 2024, compared to โ‚น697.13 Cr in July 2019.
(Source: ICRA Analytics)
Amidst this, Mirae Asset Large & Midcap Fund (formerly known as Mirae Asset Emerging Bluechip Fund) has consistently outperformed its benchmark index, the Nifty Large Midcap 250 Index (TRI), since the fundโ€™s inception.
This has been possible because the fund has employed a bottom-up investment strategy driven by value
investing in growth-oriented businesses.
This involves seeking out companies which are undervalued relative to their intrinsic value, with a particular emphasis on those with strong growth potential.
These points underscore the significant growth and increased diversification in the mid-cap sector, aligning
well with the bottom-up investing approach that emphasises evaluating individual company performance and fundamentals.

Loading suggestions...