Change Is Hard but Change Is Good- Henry Rollins
The above quoted words sound perfect in case of Mirae Asset Large Cap Fund. Ever since the fund managers decided to re-classify Mirae Asset India Equity Fund, there were several false predictions that floated in the mutual fund market. Some believed that the scheme has lost his essence as the category changed from midcap to large cap, while some considered redeeming from the scheme as a better option. But the one-month old scheme has put an end to all the trash talks. This article highlights all the current information about Mirae Asset Large Cap Fund along with the future growth aspect of the large cap fund.
Mirae Asset Large Cap Fund: Fund Overview
Mirae Asset Large Cap Fund is an open-ended scheme falling under the category of large cap funds. The fund was earlier known with the name Mirae Asset India Equity Fund was a midcap fund. In April, 2019 the fund house decided to re-classify the fund which led to the formation of this large cap fund.
However, the change didn’t impacted much on the performance of this newly formed large cap fund. Below is the current analysis of the Mirae Asset Large Cap Fund.
Investment Style Currently Followed by Mirae Asset Large Cap Fund
Mirae Asset Large Cap Fund currently follows growth style of investment with asset allocation being more inclined towards large cap companies. The fund works on the same philosophy of focused approach and invests in 62 stocks. The stocks are evaluated on the basis of previous track record, future growth prospect, and in accordance with the market conditions. Moreover, the fund invests largely in the equity and equity related instruments for targeting more returns in the long term.
Portfolio Allocation of Mirae Asset Large Cap Fund
Mirae Asset Large Cap Fund is currently investing 95.2% of the assets in the equities, 3.57% in the cash equivalents, and debt market holds 1.22% of the invested amount. Moreover, in the equity market, the large cap fund of Mirae Asset AMC invests 86.77% in the large cap stocks followed by midcap (10.97%), and small cap stocks (2.25%). Diversifying higher portion of the amount in the large cap stocks helps the fund in achieving stable returns along with faster recovery rate, if in case the market suffers from market downtrend.
Sector Allocation of Mirae Asset Large Cap Fund
The fund managers have parked the investors’ money safely in large number of sectors with financial sector holding maximum percentage of asset allocation. Mirae Asset Large Cap Fund aims to provide risk-adjusted returns and therefore deploy the amount in other promising sectors as well, such as energy, technology, healthcare, FMCG, automobile, etc. Allocating the assets in large number of sectors helps the fund managers in diluting the risk associated with a particular sector.
Below is the list of top 10 holdings of Mirae Asset Large Cap Fund
1.HDFC Bank
2.Reliance Industries
3.ICICI Bank
4.Axis Bank
5.TATA Consultancy Services
6.State Bank of India
7.Infosys
8.Larsen & Toubro
9.ITC
10.HDFC
Now, let us quickly have an overview about the previous month past performance of the fund.
Past Performance of Mirae Asset Large Cap Fund
Mutual Fund investment gives good returns in the long term but the previous growth returns of Mirae Asset Large Cap Fund depicts of a promising future. It has been only a month since the mutual fund start functioning as a large cap fund but the fund still managed to give returns which beats the benchmark and category’s average.
What Future Holds for Mirae Asset Large Cap Fund?
The future of Mirae Asset Large Cap Fund looks promising with the bullish market trend further assisting the growth. The fund will continue to achieve remarkable growth in the upcoming years. Thus, investors should start the SIP plan in this large cap fund as early as possible.
By far, you must have realized that the re-classification of Mirae Asset India Equity Fund into Mirae Asset Large Cap Fund has not affected the performance of the fund and the fund is still marching successfully, better than ever.
Mirae Asset Large Cap Fund is still growing strong after the re-categorization of Mirae Asset India Equity Fund. The article contains all the latest information about the large cap fund of Mirae Asset AMC.
Dishika is a market researcher and analyst at MySIPonline and holds 13 years of experience in the mutual fund universe. She holds a post graduate diploma in finance management and loves to write such piece of writings during leisure times.