Mirae Asset India Equity Fund, the flagship scheme of Mirae Asset Mutual Fund which has delivered consistent gains to the investors over the years, has been reclassified by Mirae Asset AMC. The highly chosen multi-cap fund will now follow large-cap mandate to deliver long-term capital appreciation to the investors and will be called as Mirae Asset Large Cap Fund.

“The portfolio of Mirae Asset India Equity Fund has always been highly inclined towards large-cap segment with nearly 80% allocation in the last few years. The re-classification was legitimate and is for the good of investors” quoted Mr Virendra Ranawat, Co-Founder of FinTech Startup, MySIPonline.

The financial experts suggest that no major change will occur in the investment strategy of the fund. Investors can expect similar performance and results from the new mandate of the flagship scheme.

The higher allocation in the large-cap category was in sync with the benchmark BSE 200. However, it was classified and compared with large-cap funds by several external agencies and investors even though the fund was free to shift the portfolio concentration towards mid or small-cap.

Another reason for the change, regarded as minor by Mr Neelesh Surana, CIO of Mirae Asset Mutual Fund, was the assets under management which grew dramatically from Rs 3,000 crore to more than Rs 11,000 crore within last 2 years. Handling the larger corpus with a multi-cap approach can be oppressing but the giant corpus can be easily handled with the large-cap mandate.

To simplify the suitability of the fund for the investors, the decision was taken to reclassify the scheme into the large-cap category in which a minimum, 80% of the corpus has to be compulsorily invested in large-cap stocks. The change in the category is effective from 1st May 2019 but no changes have been made in the portfolio of the fund. The only fact that should concern the investors is that the fund can no longer enjoy the flexibility of shifting the corpus towards mid and small-cap stocks in the positive trends although 20% of the corpus can still be invested in the mid or small-cap stocks although the fund manager is likely to maintain the large-cap allocation between 80-90%.

The experts at MySIPonline suggest the investors to stay invested if they aim for long term capital appreciation. Those who have enjoyed the consistent growth from Mirae Asset India Equity Fund in the long term can also stay invested as no changes in the investment strategy have been made and it will continue to invest 80% or more in the large-cap stocks as it did for last few years. The market conditions in the recent trends have been more supportive for the large-cap stocks and investors are likely to enjoy consistent gains in the long term.

Those investors who seek for a diversified equity portfolio with equity instruments from large, mid and small-cap segment can switch to a multi-cap scheme.

Mirae Asset Large Cap Fund has the potential to be a top performer in the large-cap category and is ideal for the new investors who prefer low-risk pure equity scheme for capital appreciation in long term.

For more details, visit: https://www.mysiponline.com/mutual-fund/mirae-asset-india-opportunities-fund-regular-growth-plan/mso2494