{"id":214,"date":"2019-04-26T10:51:29","date_gmt":"2019-04-26T10:51:29","guid":{"rendered":"http:\/\/blog.certifiedfinancialguardian.com\/?p=214"},"modified":"2019-04-26T12:36:50","modified_gmt":"2019-04-26T12:36:50","slug":"can-a-focused-approach-of-mirae-asset-focused-fund-benefit-you","status":"publish","type":"post","link":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/2019\/04\/26\/can-a-focused-approach-of-mirae-asset-focused-fund-benefit-you\/","title":{"rendered":"Can A Focused Approach Of Mirae Asset Focused Fund Benefit Investors"},"content":{"rendered":"\n

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.<\/p>\n\n\n\n

As per\nSEBI regulations, a focused fund is not allowed to hold more than 30 stocks and\ninvests a minimum of 65% of its assets in equity and equity related instruments.\nMAFF will allocate its assets as per the given prescribed limits in equities\nand will also allocate some portion (up to 35% of its total assets) to debt and\nmoney market instruments from an asset allocation standpoint and to mitigate\nthe risk.<\/p>\n\n\n\n

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

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. <\/p>\n\n\n\n

Table 1:<\/em> NFO Details<\/em><\/strong><\/p>\n\n\n\n
\n Type<\/strong>\n <\/td>\n An open-ended equity scheme investing in\n a maximum of 30 stocks intending to focus in large cap, mid cap and small cap\n category\n <\/td>\n Category<\/strong>\n <\/td>\n Diversified Equity — Focused Fund \n <\/td><\/tr>
\n Investment Objective<\/strong>\n <\/td>\n To generate long term capital\n appreciation\/income by investing in equity & equity related instruments of\n up to 30 companies.\n There is no assurance that the investment\n objective of the Scheme will be realized.\n <\/td>\n<\/tr>
\n Min. Investment<\/strong>\n <\/td>\n Rs 5,000 and in multiples of Re 1\n thereafter\n <\/td>\n Face Value<\/strong>\n <\/td>\n Rs 10 per unit\n <\/td><\/tr>
\n Plans <\/strong>\n <\/td>\n \u2022 Regular*
\u2022 Direct\n

\n *Default\n option<\/em>\n <\/td>		\n Options<\/strong>\n <\/td>\n \u2022 Growth*
\n \u2022 Dividend (Pay-out and Reinvestment*) \n

*Default\n option<\/em>\n <\/td><\/tr>
\n Entry Load<\/strong>\n <\/td>\n Nil\n <\/td>\n Exit Load<\/strong>\n <\/td>\n If redeemed;

\n \u2022 Within 1 year (365 days) from\n the date of allotment:1%
\n \u2022 After 1 year (365 days) from\n the date of allotment: Nil\n \n <\/td><\/tr>
\n Fund Manager<\/strong>\n <\/td>\n Mr Gaurav Misra\n <\/td>\n Benchmark Index<\/strong>\n <\/td>\n Nifty 200 Index (TRI)\n <\/td><\/tr>
\n Issue Opens<\/strong>\n <\/td>\n 23\/04\/2019\n <\/td>\n Issue Closes:<\/strong>\n <\/td>\n 07\/05\/2019\n <\/td><\/tr><\/tbody><\/table>\n\n\n\n

(Source<\/a>: Scheme Information Document<\/a>)<\/p>\n\n\n\n

How\nwill the scheme allocate its assets?<\/strong><\/p>\n\n\n\n

Under normal circumstances, the scheme\u2019s asset allocation<\/a> will be as under:<\/p>\n\n\n\n

Table\n2: MAFF\u2019s Asset Allocation<\/em><\/strong><\/em><\/p>\n\n\n\n

\n Instruments<\/strong>\n <\/td>\n Indicative Allocation (% of Total Assets)<\/strong>\n <\/td>\n Risk Profile<\/strong>\n <\/td><\/tr>
\n Maximum<\/strong>\n <\/td>\n Minimum<\/strong>\n <\/td><\/tr><\/thead>
\n Indian equities and equity-related\n securities$*\n <\/td>\n 100\n <\/td>\n 65\n <\/td>\n High\n <\/td><\/tr>
\n Money market instruments\/debt securities,\n Instruments and\/or units of debt\/liquid schemes of domestic Mutual Funds\n <\/td>\n 35\n <\/td>\n 0\n <\/td>\n Low\n to Medium\n <\/td><\/tr><\/tbody><\/table><\/center>\n\n\n\n

$\nsubject to overall limit of 30 stocks<\/p>\n\n\n\n

*Equity\nand Equity related instruments include convertible debentures, equity warrants,\nconvertible preference shares, equity derivatives etc.<\/p>\n\n\n\n

(Source: Scheme Information Document<\/a>)<\/p>\n\n\n\n

What will be the\nInvestment Strategy?<\/strong> <\/p>\n\n\n\n

The Scheme will primarily invest in equity\nand equity-related securities.<\/p>\n\n\n\n

The fund manager will follow a focused\napproach on the investments. The investments will be limited to a maximum of 30\nstocks. The fund has the flexibility to invest across market capitalization in\nlarge cap, mid cap and small cap category.<\/p>\n\n\n\n

The focus would be to build a portfolio of\nstrong growth companies, reflecting our most attractive investment ideas at all\npoints of time.<\/p>\n\n\n\n

The universe of stocks will comprise\nmajorly of companies having robust business models, enjoying sustainable\ncompetitive advantages as compared to their competitors and have high return\nratios.<\/p>\n\n\n\n

The Fund Manager will create a robust\nportfolio to avoid concentration risk and liquidity risk. The Fund Managers\nwill monitor the trading volumes in a particular stock before investment to\navoid liquidity risk.<\/p>\n\n\n\n

Risk Mitigation measures arising from investments\nin equity\/equity related instruments <\/strong><\/p>\n\n\n\n