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