Mirae Asset Emerging Bluechip Fund is primarily a Mid-cap fund which gives investors the opportunity to participate in the growth story of today's relatively medium sized but emerging companies which have the potential to be well-established tomorrow.
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Yesterday’s Mid-caps today’s Large-caps
Why Emerging Bluechip companies now?
Emerging Bluechip companies offer relatively better return potential as is evident from the reasons below:
- Performance:
Data analyzed over the past several years shows that small and mid-cap indices have outperformed large-cap indices. A consistent track record of outperformance by emerging Bluechip companies makes them an exciting investment proposition.
Source: MFI Explorer as on as on 30th April 2010
The above graph shows the growth of Rs 10000 invested on April 30, 2002 in S&P Nifty and CNX Midcap. The amount invested in CNX Midcap Index has grown far more to Rs 74,778 while that invested in the S&P Nifty has grown to Rs 52,600.
Past Performance may or may not be sustained in future and is no guarantee of future results.
- Point to Point Performance:
| Date |
YTD* Absolute |
Last 6 months Absolute |
Last 1 year Compounded Annualized |
Last 3 years Compounded Annualized |
Last 4 years Compounded Annualized |
| CNX Midcap |
8.5% |
22.5% |
108.8% |
15.4% |
11.9% |
| BSE Sensex |
0.5% |
10.5% |
54.0% |
8.2% |
9.9% |
| S&P Nifty |
1.5% |
12.0% |
51.9% |
8.9% |
10.4% |
Source: MFI Explorer as on 30th April 2010: *YTD indicates Year to date returns from 01/01/2010 to 30/04/2010
Past Performance may or may not be sustained in future and is no guarantee of future results.
- High earnings growth:
CNX Mid-cap Index is offering higher earnings growth for FY11 and FY12 (based on consensus forecasts) compared to Sensex. Momentum in earnings upgrade cycle for CNX Mid-cap Index has sustained versus pause/ decline in earnings for Sensex.
- Reasonable valuations:
CNX Mid-cap index is trading at 20-30% discount to Sensex based on P/ E and P/ B ratio which makes investing in mid-cap funds an attractive proposition.
Source: CLSA, Feb 2010
- Future scope:
There is scope for P/E multiples to expand when a company moves up from a small/ mid-cap size to a large-cap
- Growth prospects:
Mid-cap stocks offer better growth prospects due to presence in a new segment or area that is growing at a faster pace.
Why mid-caps should be a part of your portfolio?
The right mix of mid-caps in your portfolio can help one optimize risk adjusted returns. As seen in the table below, a mix of 50% investments in large-cap and 50% in mid-caps leads to the right mix of returns and risk ratio.
Source: Bloomberg, April 2010
Past Performance may or may not be sustained in future and is no guarantee of future results.
Fund Features
| Investment Objective |
To generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalization and have market capitalization of atleast Rs. 100 crores at the time of investment. From time to time, the fund manager may also seek participation in other Indian equity and equity related securities to achieve optimal Portfolio construction. The Scheme does not guarantee or assure any returns. |
| Fund Type |
An open ended equity fund |
| Management Style |
Midcap fund with no theme/style bias. |
| Plans & Options |
The Scheme shall have a Regular Plan and offers two options viz., Growth and Dividend. Dividend Plan will offer Payout & Reinvestment facility. |
| Minimum Application Amount & Minimum Additional Application Amount |
Rs.5, 000/- and in multiples of Re. 1/- thereafter. Additional investments in an existing folio can be made for Rs.1, 000/- and in multiples of Re.1/- thereafter. |
| Benchmark |
CNX MIDCAP Index |
| New Fund Offer Price |
Rs. 10 per Unit |
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Risk Factors
Statutory Details Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Global Investments (India) Private Limited (AMC); Sponsor: Mirae Asset Global Investments Company Limited.
Investment Objective: Mirae Asset Emerging Bluechip Fund (MAEBF): (An Open ended Equity Fund):To generate income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalization and have market capitalization of atleast Rs. 100 Crores at the time of investment. From time to time, the fund manager may also seek participation in other Indian equity and equity related securities to achieve optimal portfolio construction. The Scheme does not guarantee or assure any returns. Load Structure: Entry Load: Nil. In terms of SEBI circular no. SEBI/IMD/CIR No.4/ 168230/09 dated June 30, 2009, no entry load will be charged by the Scheme to the investor effective August 1, 2009. Upfront commission shall be paid directly by the investor to the AMFI registered Distributors based on the investors' assessment of various factors including the service rendered by the distributor.Exit Load: Redemption within 1 year (365 days) from the date of allotment (Including SIP/STP/SWP) - 1.00%. Redemption after 1 year (365 days) from the date of allotment - NIL. Asset Allocation: (1) Indian Equities and Equity Related Securities of companies, which are not part of the top 100 stocks by market capitalization and have market capitalization of atleast Rs.100 Crores at the time of investment: 65%-100% (2) Other Indian Equities and Equity Related Securities: 0%-35%; Money market instruments / debt securities Instruments (Including up to 20% of corpus in securitized debt): 0%-35%.Terms of Issue:The units are available at the face value of Rs.10/- per unit during the New Fund Offer Period. The AMC will calculate and disclose the first NAV not later than 30 days from the closure of New Fund Offer Period. Subsequently, the NAV will be calculated at the close of every working day and shall be published in two daily newspapers and on the AMC/AMFI website.Risk Factors: Mutual fund investments are subject to market risks and there is no assurance or guarantee that the objectives of the scheme will be achieved. As with any investment in securities, the Net Asset Value (NAV) of the units issued under the Schemes can go up or down depending on the factors and forces affecting the capital markets.Investments in mutual funds are prone to risks of fluctuation in NAVs, uncertainty of dividend distributions etc.Past performance of the Sponsor / AMC / Mutual Fund / Trustee does not guarantee the future performance of the Schemes of Mirae Asset Mutual Fund.he sponsors are not liable or responsible for any loss resulting from the operation of the fund beyond the initial contribution made by them of an aggregate amount of Rupees One Lakh towards setting up of the fund. The Scheme should have a minimum of 20 investors and no single investor should account for more than 25% of the corpus of such scheme/plan(s). In case of non-fulfillment with either of the above two conditions in a three months time period or the end of succeeding calendar quarter, whichever is earlier, from the close of the New Fund Offer (NFO) or on an ongoing basis for each calendar quarter, the schemes /plans shall be wound up by following the guidelines prescribed by SEBI and the investor’s money would be redeemed at applicable NAV.Mirae Asset Emerging Bluechip Fund is only the name of the scheme and does not in any manner indicate either the quality of the scheme or its future prospects or returns. Investors in the scheme are not being offered any guaranteed / indicative returns. Please see "Risk Factors", "Scheme Specific Risk Factors and Special Consideration" and "Right to limit redemptions" in the Scheme Information Document (SID).Please read the Statement of Additional Information (SAI) and Scheme Information Document (SID) carefully before investing. A copy of SAI / SID/ Key Information Memorandum cum Application form will be available at AMC offices/AMC web-site www.miraeassetmf.co.in / Investor Service Centre / Distributors on request.
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