Is it Time to Exit from Mirae Asset India Equity Fund?

Mirae Asset AMC has announced to change the current Multi Cap category to Large Cap with effect from 1st May 2019.

Today’s blog is all about performance, risk rating and takeaways for existing or new investors of this fund.

Reasons for change to Mirae Large Cap Fund

CEO Mr. Swarup Mohanty’s arguments are:

  • The fund was managed as Large cap for last 4 years.
  • The fund will hold midcaps according to SEBI rules, i.e. 15% – 18%
  • Growing AUM (Assets Under Management)

A Multi Cap Fund is an Open Ended Equity Scheme investing across Large Cap, Mid Cap and Small Cap stocks. Now, the CEO says from last 4 years, the fund was managed as Large cap, which also means the fund manager has not exercised his right to invest across sectors.

Does’nt sound convincing

For eg:- If I wanted to buy this fund, then i would had gone through scheme document, key information memorandum, one pagers, amc classification, rating portals etc, I would have got impression as a Multi Cap fund.

So, when i had a look at portfolio nearly 87% is in Large cap, 11.5% in Midcap and sparing allocation to small cap.

Many investors will have to re-jig their portfolios now due to change of the scheme mandate which is a frustating job.

Rolling Returns and Risk (5 years)

Rolling Returns and Risk (2 years)

Performance Dip due to major allocation to Large cap

2 and 3 years

Decrease in outperformance

New Investor: Should I Stop / Exit?

If you have another Large cap fund, then decide which one you want to hold. All large cap fund performance will be approx same…(just few % more or less)

Existing Investor: Should I Stop / Exit?

If you have a major allocation in this fund, kindly review the situation and act upon what suits you the best.

Evaluate your position carefully. Focus on risk management instead of aggressive returns.

Investors willing to Exit from this scheme can do it freely in April 2019. No Exit Load will be levied.

Investors who cannot evaluate their scheme’s performance based on risk analysis can reach us. We will be happy to help.

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Investments & Thali Connection

What are the different varieties of food in a thali?

We all would have tasted at least once any thali’s.

As thali has different food like pickle, papad & rice, your portfolio should also have different assets.

All food proportions are different. Rice is more, cucumber & pickle is less, similarly, risky assets should be less & quantity should be checked.

Our diet changes depending on the age & ability to eat. Similarly, our investment portfolio should also change with age & needs.

Kaustubh Deole

Fixed Deposit = MASK

Friends

Last week i visited a prospective client through a reference. He shared his idea of saving & preserving money. He shared his details & my goodness; he is sitting on worth 30 lacs in Fixed Deposit!

The emotion of preserving money is great but the question is is it increasing as compared to inflation?

Obviously not.

People still think FD as a superior option to preserve money. I would rather say, the person who has invested in FD is an utter loser.

FD should ideally contain only the amount which can be used in emergency situation.

Kaustubh Deole

IPL – Advisor Zaruri Hai

The First Match of IPL contained Investment message.

Very few noticed it.

A Professional Coach is required in Cricket likewise; A Professional Advisor is also required in Investing Journey.