Steady out­per­former

The multi-cap fund has been placed in the top quar­tile across all time-frames

The Hindu Business Line - - MUTUAL FUNDS - YOGANAND D

In­vestors can con­sider buy­ing the units of Mi­rae As­set In­dia Eq­uity, an out­per­former across all time-frames with a long-term track record. The fund be­longs to the multi-cap cat­e­gory and was for­merly known as Mi­rae As­set In­dia Op­por­tu­ni­ties. It is an eq­uity di­ver­si­fied fund with the flex­i­bil­ity to in­vest across sec­tors, mar­ket cap­i­tal­i­sa­tions, themes and in­vest­ment styles.

Mi­rae As­set In­dia Eq­uity is bench­marked against the S&P BSE 200 (TRI). The scheme’s ob­jec­tive is to in­vest across large-, mid- and small-cap com­pa­nies to gen­er­ate long-term cap­i­tal ap­pre­ci­a­tion. Over the past three years, the fund has beaten its peers and de­liv­ered 16.5 per cent re­turns against the bench­mark re­turn of 14.5 per cent. It has been placed in the top quar­tile of the multi-cap cat­e­gory across all time-frames due to its sta­ble per­for­mance.

It has out­paced key peers such as Ko­tak Stan­dard Mul­t­i­cap, Aditya Birla Sun Life Eq­uity and Franklin In­dia Op­por­tu­ni­ties over the past one- and three-year pe­ri­ods. Mi­rae As­set In­dia Eq­uity has con­tained the down­side well in the one-year pe­riod by de­clin­ing 3 per cent.

Flex­i­bil­ity

Over the long term as well, the fund has de­liv­ered su­pe­rior re­turns. For in­stance, over five- and 10-year pe­ri­ods, the fund’s re­turns have been 19.4 per cent and 22.6 per cent, re­spec­tively. With flex­i­bil­ity to in­vest in across mar­ket caps, the scheme can tide over dif­fer­ent volatile mar­ket con­di­tions bet­ter.

The fund con­tained the down­side well dur­ing the 2011 mar­ket down cy­cle and also dur­ing the lack­lus­tre years of 2015, 2016 and 2018. It pre­dom­i­nately in­vests in large-cap stocks that of­fer sta­bil­ity in choppy mar­kets. It’s port­fo­lio is con­structed based on core and tac­ti­cal por­tions that may vary. For in­stance, bank­ing is the top pre­ferred sec­tor with the cur­rent high­est al­lo­ca­tion of about 27 per cent (from 19 per cent in 2014), and is al­most like a core por­tion. The scheme has added sec­tors such as min­eral and re­tail­ing over the past 10 months, which could form part of the tac­ti­cal por­tion of the port­fo­lio.

Other key sec­tors are soft­ware and petroleum prod­ucts with above 8 per cent al­lo­ca­tion each. Stocks in these sec­tors — such as Reliance In­dus­tries, TCS and In­fosys — have de­liv­ered good re­turns over the past year. In­ter­est­ingly, it has marginally re­duced the al­lo­ca­tion to au­to­mo­biles, gas and ce­ment sec­tors which are un­der­go­ing slight cor­rec­tion.

The fund has about 60 stocks in its port­fo­lio. Apart from the top 12-15 stocks, the al­lo­ca­tion to­wards other in­di­vid­ual stocks is less than 2 per cent, mit­i­gat­ing con­cen­tra­tion risk. The fund re­cently added stocks such as Ti­tan Com­pany, Wipro and Coal In­dia, and ex­ited Apollo Hos­pi­tals En­ter­prise and Ba­jaj Auto.

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