Returns are point to point and in %, calculated using Direct Plan – Growth option. Those depicted over 1-Yr are compounded annualised.
Data as on May 26, 2021
(Source: ACE MF)
*Please note, this table only represents the best performing funds based solely on past returns and is NOT a recommendation. Mutual Fund investments are subject to market risks. Read all scheme related documents carefully. Past performance is not an indicator for future returns. The percentage returns shown are only for indicative purposes.<\/strong><\/p>\n\n\n\n

MALCF is known for its ability to deliver superior risk-adjusted returns across bull and bear market phases. It has consistently found place among above-average performers in the category across various time frames. Over 5-year and 7-year periods, the fund has managed to generate a decent alpha of around 2-4 percentage points over the benchmark. Even over the shorter time horizon of 1 year to 3 years, its performance compared to the benchmark and many of its peers is respectable.<\/p>\n\n\n\n

With a Standard Deviation of 21.59, the fund’s volatility has been nearly in line with the benchmark as well as the category average. Moreover, the Sharpe Ratio of the fund is among the best in the category, and higher than the benchmark.<\/p>\n\n\n\n

Investment strategy of Mirae Asset Large Cap Fund<\/strong><\/p>\n\n\n\n

Categorised as a large cap fund, MALCF is mandated to invest minimum 80% of its assets in equity and equity related instruments of large-cap companies, i.e. top 100 companies in terms of market capitalisation. MALCF follows a combination of the top-down and bottom-up approach to stock picking and endeavours to invest in companies which have a chance of benefiting from economic growth and structural changes happening in the country.<\/p>\n\n\n\n

The fund has proven its ability to timely identify sector and stock specific opportunities. However, its major focus will remain towards companies qualifying under large caps. Aiming to outperform the benchmark, the fund managers follow a rigorous investment process that leads to alpha generation. They look at businesses based on various quantitative and qualitative parameters and give high importance to quality and scalable businesses run by credible management. While picking stocks for the portfolio, the fund managers look for growth businesses and evaluate the value before buying into them.<\/p>\n\n\n\n

MALCF usually holds a large-cap bias with some allocation towards mid-cap stocks and invests in a well-diversified portfolio of about 55-65 stocks. The fund resists from following any market momentum and stays fully invested at most of the times.<\/p>\n\n\n\n

Graph 2: Top portfolio holdings in Mirae Asset Large Cap Fund<\/em><\/strong><\/p>\n\n\n\n

<\/figure>\n\n\n\n

Holding in (%) as on April 30, 2021
(Source: ACE MF) <\/p>\n\n\n\n

As of April 30, 2021, MALCF held a well-diversified portfolio of 55 stocks. It held major exposure in highly liquid large cap names like Infosys, HDFC Bank, ICICI Bank, and Reliance Industries together accounting for around 36.3% of its assets. TCS, Axis Bank, Bharti Airtel, HUL, SBI and Dr Reddy’s Laboratories are among the other top holdings in the fund’s portfolio. Many of the stocks are part of its portfolio for around 2 years or more which shows the conviction the fund manager has in his stock selection.<\/p>\n\n\n\n

In the last one year, MALCF has benefited from its prominent holdings in stocks like Infosys, HDFC Bank, ICICI Bank, Reliance Industries, SBI, Axis Bank, among others that have turned out to be the top gainers in its portfolio.<\/p>\n\n\n\n

In terms of sector, around one third of the fund’s portfolio is currently skewed towards Banking and Finance stocks, followed by Infotech, Petroleum Products, Consumption, Pharma, and Auto together accounting for another 48% of the portfolio. The remaining portion of the fund’s portfolio is diversified across range of sectors like Engineering, Telecom, Consumer Durables, Power, Cement, Construction, among others.<\/p>\n\n\n\n

Suitability<\/strong><\/p>\n\n\n\n

MALCF has a history of taking timely sector bets. The fund manager takes cyclical bets that help increase the returns generated by the fund during economic recovery, whereas the allocation to defensives helps tackle the volatility and limit downsides<\/a>.<\/p>\n\n\n\n

The fund combines the consistency and stability of large caps with a few high conviction mid-cap ideas. In addition, it holds a well-diversified portfolio, spread across stocks and sectors, that helps it efficiently deal with market fluctuations. The fund has the potential to not only outperform the benchmark, but also its category peers across longer time periods.<\/p>\n\n\n\n

This makes MALCF suitable for investors seeking a well-managed and relatively stable fund for long term wealth creation.<\/p>\n\n\n\n

Note:<\/strong> This write up is for information purpose and does not constitute any kind of investment advice or a recommendation to Buy \/ Hold \/ Sell a fund. Returns mentioned herein are in no way a guarantee or promise of future returns. As an investor, you need to pick the right fund to meet your financial goals. If you are not sure about your risk appetite, do consult your investment consultant\/advisor. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully.<\/em><\/p>\n\n\n\n

This article first appeared on PersonalFN\u00a0here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Large-cap funds aim to provide you, the investor, an opportunity to tap the growth potential of large-sized companies that are usually leaders in their respective field. These companies have a large scale of operation along with the competitive advantage and high governance standards. Therefore, these companies are less likely to be impacted by economic slowdown. Large-cap…<\/p>\n","protected":false},"author":5,"featured_media":3207,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cybocfi_hide_featured_image":""},"categories":[3],"tags":[],"_links":{"self":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/3205"}],"collection":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/comments?post=3205"}],"version-history":[{"count":1,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/3205\/revisions"}],"predecessor-version":[{"id":3208,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/posts\/3205\/revisions\/3208"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media\/3207"}],"wp:attachment":[{"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/media?parent=3205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/categories?post=3205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.certifiedfinancialguardian.com\/index.php\/wp-json\/wp\/v2\/tags?post=3205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}