Among large-cap schemes that focus on quality of companies, Mirae Asset India Opportunities has distinguished itself by performing consistently well by sticking to its investment mandate. In the past three- and five-year periods, the scheme has given 11% and 21% returns, respectively, while its benchmark, BSE 200, has given 8% and 15% returns in three year and five periods, respectively.
The fund focuses on two key principles. One, buying companies which not only have a high return on capital employed and have generated consistent and incremental cash flows. Two, picking companies at attractive valuations. These factors have played crucial role in the scheme's outperformance. It has been largely observed that the scheme has 5-10 % higher exposure to large-sized companies than its peers. In buying large-sized companies, the Mirae Asset India Equity Fund scheme's fund manager, Neelesh Surana, chooses companies keeping their valuations in mind. The fund, co-managed by Harshad Borawake, has favoured consumption stocks, such as Marico, ITC, Dabur, Asian Paints and Hindustan Unilever.
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