Skip to main content

Mirae Asset Focused Fund

Top SIP Funds Online 

Mirae Asset Focused Fund (MAFF) is a new fund from the stable of Mirae Asset Mutual Fund. It is an open-ended diversified equity scheme which will follow a focused approach of investing in equity and equity related instruments.

As per SEBI regulations, a focused fund is not allowed to hold more than 30 stocks and invests a minimum of 65% of its assets in equity and equity related instruments. MAFF will allocate its assets as per the given prescribed limits in equities and will also allocate some portion (up to 35% of its total assets) to debt and money market instruments from an asset allocation standpoint and to mitigate the risk.

In an endeavour to capture potential gains over the long term with a focused approach, MAFF will diversify its equity portfolio by being sector and market cap agnostic. Nonetheless being a focused fund it would entail very high-risk.

Hence, MAFF is suitable for investors who are willing to take the high risk and have an investment time horizon of at least 5-7 years while they seek to appreciate their capital.

Table 1: NFO Details

Type An open-ended equity scheme investing in a maximum of 30 stocks intending to focus in large cap, mid cap and small cap category Category Diversified Equity -- Focused Fund
Investment Objective To generate long term capital appreciation/income by investing in equity & equity related instruments of up to 30 companies.

There is no assurance that the investment objective of the Scheme will be realized.
Min. Investment Rs 5,000 and in multiples of Re 1 thereafter Face Value Rs 10 per unit
Plans • Regular*

• Direct

*Default option
Options • Growth*

• Dividend (Pay-out and Reinvestment*)

*Default option
Entry Load Nil Exit Load If redeemed;

•  Within 1 year (365 days) from the date of allotment: 1%

•  After 1 year (365 days) from the date of allotment: Nil
Fund Manager Mr Gaurav Misra Benchmark Index Nifty 200 Index (TRI)
Issue Opens: 23/04/2019 Issue Closes: 07/05/2019
(Source: Scheme Information Document)


How will the scheme allocate its assets?

Under normal circumstances, the scheme's asset allocation will be as under:

Table 2: MAFF's Asset Allocation

Instruments Indicative Allocation (% of Total Assets) Risk Profile
Maximum Minimum
Indian equities and equity-related securities$* 100 65 High
Money market instruments/debt securities, Instruments and/or units of debt/liquid schemes of domestic Mutual Funds 35 0 Low to Medium
$ subject to overall limit of 30 stocks
*Equity and Equity related instruments include convertible debentures, equity warrants, convertible preference shares, equity derivatives etc.
(Source: Scheme Information Document)


What will be the Investment Strategy?

The Scheme will primarily invest in equity and equity-related securities.

The fund manager will follow a focused approach on the investments. The investments will be limited to a maximum of 30 stocks. The fund has the flexibility to invest across market capitalization in large cap, mid cap and small cap category.

The focus would be to build a portfolio of strong growth companies, reflecting our most attractive investment ideas at all points of time.

The universe of stocks will comprise majorly of companies having robust business models, enjoying sustainable competitive advantages as compared to their competitors and have high return ratios.

The Fund Manager will create a robust portfolio to avoid concentration risk and liquidity risk. The Fund Managers will monitor the trading volumes in a particular stock before investment to avoid liquidity risk.

Risk Mitigation measures arising from investments in equity/equity related instruments

  • Being a Focused Fund, the scheme has a security concentration risk, however, the scheme will endeavour to have a diversified equity portfolio comprising stocks across various sectors of the economy to reduce the sector-specific risks.

  • The scheme targets to maintain exposure across different market cap segments - i.e. large, mid-cap and small cap. This shall aid in managing volatility and improve liquidity.

  • Any investments in debt securities would be undertaken after assessing the associated credit risk, interest rate risk and liquidity risk.

Besides, the Scheme will also invest in debt securities and money market instruments.

  • The credit quality of the portfolio will be maintained and monitored using in-house research capabilities as well as inputs from external sources such as independent credit rating agencies.

  • The investment team will primarily use a top-down approach for taking interest rate view, sector allocation along with a bottom-up approach for security/instrument selection.

  • The bottom-up approach will assess the quality of security/instrument (including the financial health of the issuer) as well as the liquidity of the security.

  • Investments in debt instruments carry various risks such as interest rate risk, reinvestment risk, credit risk and liquidity risk etc. Whilst such risks cannot be eliminated, they may be minimized through diversification.

Who will manage the Mirae Asset Focused Fund?

Mirae Asset Focused Fund will be managed by Mr Gaurav Misra.

Mr Gaurav Misra has an Honors degree (BA. Hons) in economics from St Stephen's College and an MBA from IIM Lucknow to his credit. Prior to joining Mirae Asset Mutual Fund, he was associated with ASK Investment Managers Ltd for over a decade as a Senior Portfolio Manager

Currently, at the fund house, he co-manages Mirae Asset India Equity Fund.

The outlook of Mirae Asset Focused Fund:

The fate of MAFF hinges on the performance of the stocks held in the portfolio. Although, the fund manager will follow a robust investment style that includes the following:

- A focused approach

- Flexibility to invest across market capitalisation and sectors

- An aim to build and manage a portfolio comprising of strong growth companies based on the investment process

- Building a robust portfolio that will mitigate risk

Image: MAFF's Investment Style


(Source: Mirae Asset Focused Fund One-Pager)


But considering the present volatility due to the ongoing Lok Sabha elections with investors speculating the election's outcome. Constructing the portfolio would be a challenging task for the fund manager, and if the Indian equity markets hit more turbulent waters ahead it may inflict high-risk

At present market when the S&P BSE Sensex is already near its 52-week high. Earnings will have to justify the valuations. The trail P/E of the S&P BSE Sensex and the large-cap index is currently at 28x and 26x. Even the P/E of the S&P BSE MidCap index has scaled to around 30x. Calling any of these levels as 'cheap' would be an imprudent judgement. The S&P BSE SmallCap Index is trading at a negative P/E of around 102x, but that doesn't mean valuation-wise small-caps look attractive. What it means is, many constituents of the BSE SmallCap index are making losses thereby contributing negatively to its growth.

Even though the fund has the option to invest in equity derivatives instruments for hedging or balancing the portfolio to optimize returns and mitigate the risk involved.

While the portfolio construction will be in a diversified manner with a sector agnostic and across market cap, allocating a dominant portion to large caps can offer stability to the investment portfolio. Investing in large blue-chip companies with strong balance sheets and proven track records in the portfolio could help ride the wave of short-term volatility to a certain extent. In present conditions, having a concentrated portfolio of small and mid-caps will prove to be more harmful. Hence, how the fund manager constructs the portfolio is crucial and remains to be seen.





SIPs are Best Investments as Stock Market s are move up and down. Volatile is your best friend in making Money and creating enormous Wealth, If you have patience and long term Investing orientation. Invest in Best SIP Mutual Funds and get good returns over a period of time. Know which are the Top SIP Funds to Invest Save Tax Get Rich - Best ELSS Funds

For more information on Top SIP Mutual Funds contact Save Tax Get Rich on 94 8300 8300

OR

You can write to us at

Invest [at] SaveTaxGetRich [dot] Com

Popular posts from this blog

Mutual Fund Review: Taurus Tax Shield

    Taurus Tax Shield has seen a turnaround in performance since 2007, but still remains a volatile offering… The fund has seen a turnaround in its performance since 2007 and has delivered impressively during market rallies since then. The portfolio is also more diversified. It contained its downfall to an average level in 2008 but is still one of the most volatile offerings in this category. Bold investors can look at this fund.   Strategy The fund manager invests across the market capitalisation and sectors. The selection of stocks is made on the basis of long-term business prospects and value creation. Fund Insight Launched in March 1996, the fund was a laggard with just two annual outperformances. Concentrated stock bets and high exposure to mid and small caps led to it being hit harder during market downturns. The number of stocks in the portfolio never exceeded 20 and it was not rare to see the top 5 holdings account for around 60 per cent of the portfolio. After b...

Use Mutual Fund SWPs for getting fixed payments

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   Investors time withdrawals optimally to save on tax The systematic withdrawal plan, or SWP, could be called the lesser known cousin of the much talked about and publicised systematic investment plan (SIP). There's yet another cousin — the Systematic Transfer Plan ( STP ). In SIP, you invest a fixed sum of money at regular intervals (monthly/ quarterly) to buy some units of a mutual fund scheme. In SWP, as the name suggests, you do the opposite: You redeem some mutual fund units from your portfolio to get a fixed sum of money at regular intervals (monthly/quarterly/half year/yearly). In SIP, you get a higher numbers of units when the markets are down, and lesser in a buoyant market. In SWP, going by the product logic, you redeem higher number of units when the markets are do...

AXIS Long Term Equity Fund - The Best Tax Saver Fund for 2016

  AXIS Long Term Equity Fund - Invest Online   History:   The open ended mutual fund was launched on December 21 in the year 2009. It is benchmarked against BSE 200 and managed by the fund manager JINESH GOPANI. Initially the scheme was called as Axis tax saver fund but later it was renamed as Axis long term equity fund with effect from September 2, 2011. Nature of investment: As far as asset allocation is concerned, 97.52% of the stocks are equity and 0.02% is debt based. The primary focus of the fund is to invest in diversified equity stocks that have higher growth potential. Total asset size of the fund is in the tune of 4,996 CRORE as of June 30, 2015. Performance: The performance of the fund for one year, 3 years and 5 years are 23.6%, 29.9% and 19.1 respectively which are far greater than 6.4%, 14% and 5.6% benchmark figures. It has also preformed fairly well against SBI magnum Tax Gain (G) and HDFC tax saver (G). The growth comparison is enumerated below;                        ...

IDFC Classic Equity Fund

Invest In Tax Saving Mutual Funds Online Download Tax Saving Mutual Fund Application Forms Buy Gold Mutual Funds Call 0 94 8300 8300 (India)   IDFC Classic Equity Fund IDFC Classic Equity is a large-cap equity fund which currently has assets under management worth Rs. 158.52 crore. It was launched in August 2005. The fund is benchmarked against the BSE-200 Index. Performance YTD 1-Year 3-Year 5-Year Since Inception IDFC Classic Equity 0.93 26.61 6.30 1.01 11.65 BSE 200 1.52 17.31 6.00 1.99 12.98 All figures in % as on January 31, 2013; Returns above one-year in CAGR terms ...

Health insurance guide - Part I

Insurance, by definition, is morbid. What if I die suddenly? What if my home caught fire? What if I had to undergo expensive medical treatment? What if something that I thought happened only to others befell me? Insurers, who work with large samples, calculate the probability of such an event and, hence, the possibility of them having to pay out a sum of money to mitigate, to the extent possible, the effects of that disaster. However, the possibility of you undergoing some kind of expensive medical treatment during your lifetime is far more likely than you dying suddenly or your house burning down. Given that costs at private healthcare facilities, where you are most likely to land up, is high, and, doubling every four years 10 months or so, the rest of your money life could easily go out of whack if you had to incur such expenses. Just 12 per cent of India's population is covered with some sort of health insurance. Pared to the bone, for a comparatively small price, health insu...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now