Strict Fo­cus on Qual­ity Pays Off

Mi­rae As­set Emerg­ing Bluechip Fund

The Economic Times - - Smart - PORT­FO­LIO CHANGE IN LAST 6 MONTHS Source: Ex­pert Take

Post the Bud­get, which had no big sur­prises, it is time for in­vestors to look at qual­ity com­pa­nies, which have not dis­ap­pointed in­vestors, to a large ex­tent, in terms of fi­nan­cial per­for­mance and re­turn ra­tios. One such scheme is Mi­rae As­set Emerg­ing Bluechip Fund.

It is one of the few schemes in which the fund man­ager has un­wa­ver­ing fo­cus on qual­ity of com­pa­nies. The scheme’s fund man­ager stays away from mo­men­tum stocks, which in the short term may boost re­turns, but in the long term may prove to be un­prof­itable. The scheme’s fund man­ager Nee­lesh Su­rana se­lects a stock only when three main pa­ram­e­ters are met — qual­ity of earn­ings, prod­ucts and pres­ence in the in­dus­try in which it op­er­ates; man­age­ment (cor­po­rate gov­er­nance); and val­u­a­tions. The fund in­vests 25-30% of its port­fo­lio in Top 100 com­pa­nies by mar­ket cap­i­tal­i­sa­tion.

Due to fo­cus on qual­ity stocks, it has beaten its cat­e­gory funds by a con­sid­er­able mar­gin. In the past three-year and five-year pe­ri­ods, the scheme has given 38.4% and 29% re­turns, re­spec­tively, while its benchmark in­dex Nifty Free Float Mid­cap 100 has given 29% and 17%, re­spec­tively, in the same pe­ri­ods.

In the past six months, the scheme has in­vested in com­pa­nies, which had cor­rected in re­cent times, but have good re­turn ra­tios. The scheme has in­vested across themes. A few prom­i­nent names are GAIL, Amara Raja Bat­ter­ies, Tata Global Bev­er­ages and Bharat Fi­nan­cial In­clu­sion. Adani Ports and SEZ Com­plete Ex­its The fund has been man­aged by the same fund man­ager since its launch, which gives con­sis­tency and co­her­ence in the way it is man­aged. It main­tains a healthy mix of mid­cap to large cap com­pa­nies, roughly at 2:1. It is not very vo­latile and it gen­er­ates much higher re­turns, as com­pared to the quan­tum of risk it takes in the scheme.

New En­trants In­crease in Al­lo­ca­tion

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