Mirae Asset Emerging Bluechip Fund: The Star of MF Industry

Posted by Dishika Baheti on October 29th, 2018

After re-categorisation, many mutual fund schemes that were investing in various market segments have fallen into a new category. Every scheme has now different portfolio from the other due to SEBI’s re-categorisation norms which have created a big confusion amongst the investors. Mirae Asset Emerging Bluechip Fund, which was earlier a mid-cap fund, invested close to 35% in large-cap stocks till end-December 2017, while its large-cap holding has gone up to 48% as of end-May 2018 after re-categorisation and has become a large-and-mid-cap fund. Still, the fund continues to offer high returns and long-term growth to the investors to be the star of the mutual fund industry.

Portfolio Changes:

Mirae Asset Emerging Bluechip Scheme has constructed a diversified portfolio in the past six months to comply with the norms of SEBI. It has done new inclusions in its portfolio by exiting from the stocks of Lupin, Glenmark Pharma, Adani Port & SEZ, and Kaveri Seeds Co. 

The fund has allocated its capital in a diversified manner in multiple sectors as presented in the pie chart above. The overweight in the banking and finance theme shows that the fund is looking after the growth in the long run, even when the banking stocks are not performing well in the current scenario. 

The investment strategy shows that the management team of MAEBF has adopted a cautious approach of restricting fund inflows given in the high market valuations and liquidity constraints, although it has not disappointed the investors on the returns’ front.

Disciplined Investment Approach:

Mirae Asset Emerging Bluechip has taken cautious calls on the market with maximum placing in the large-cap stocks currently as well as attractive growth-oriented mid-sized companies due to falling in the midcap index. The fund manager, Mr Neelesh Surana picks up such mid-cap stocks which have consistently proved themselves to be in potential large-caps’ leagues. This has made it a distinct performer. Besides this, even though the fund tries to spot emerging bluechip companies in the market, its beta is quite low, which caps portfolio downside during the volatility.
The fund invests in the decent opportunities from a long-term viewpoint, and hunt for the same by digging deep in the market and takes part in the stocks with a focus on "quality up to a reasonable price”. This helps it to grow in the long run in the market and to outperform in multiple market frames.

Impressive Performer:

A fund is considered the best when it outperformed the benchmark and peers with superior returns, and this is the hallmark of Mirae Asset Emerging Bluechip Fund G. It has delivered excellent returns since its launch to outstar index and category. This can also be seen in the long-term returns provided in the graph below that it has delivered the best returns with high margin to the investors.

Performance of Mirae Asset Emerging Bluechip Fund continues to be very consistent that it has also outperformed its peers' group in terms of alpha generation by delivering 2.62% alpha (as on Sept 30, 2018). However, the fund is a bit riskier than other funds of the category as its more than 40% of the corpus is invested in the mid-cap stocks.

Conclusion:

A consistent superior returns of Mirae Asset Emerging BLuechip Fund- Growth Plan is its one of the strengths. Minimising the concentration and liquidity risk, the fund has delivered above-average returns by holding 65-70 stocks at any time of the market. All this has made the fund a star in its category as well as in the mutual fund industry. However, the fund has not witnessed sharp bear phase as of 2008 but has managed to cap losses in the year 2011 showing its capability to standout in different market situations.