Mirae Asset Emerging Blue Chip Fund

Mirae Asset Emerging Blue Chip Fund

Introduction

You have likely heard of blue-chip funds if you are interested in the stock market. These funds invest in established, reputed stocks with stable financial performance over the years. Some blue-chip companies include Tata and Reliance. Since these are stable companies, the risk factor is also low. Furthermore, their dividend policies are stable. Being reliable and sound investments, they are highly sought after by investors. The Mirae Asset Emerging Blue Chip Fund is an example of a blue-chip fund. It is among the best performing mutual funds currently available. 

In this article, we will discuss it in detail.

Mirae Asset Mutual Fund

The popular Mirae Asset Emerging Blue Chip Fund was launched by the Mirae Asset Mutual Fund on 9 July 2010. The Mirae Asset Mutual Fund group, one of the leaders in Asian financial markets, began operations in 1997. Since then, they have expanded into 14 countries, including the United States, Europe and India. 

What are the objectives of the scheme?

The Mirae Asset Emerging Blue Chip Fund is launched as an open-ended equity scheme. It invests in both large-cap and mid-cap stocks. The fund’s objectives are as follows:

  • Investing in Indian securities of large- and mid-cap companies to generate returns and create wealth.
  • To give investors the chance to invest in the growth of emerging companies that have the potential to become blue-chip companies. 

Who are the fund managers of the scheme?

  • Mr Neelesh Surana, with over 24 years of experience in financial services and fund management, is an expert at managing equity schemes.
  • Mr Ankit Jain has over 7 years of experience in investment analysis, fund management and financial services. 

What are the asset allocations and holdings of the fund?

Here is the breakup of the fund’s investment portfolio:

  • Summary of allocations
S.no Type of Asset Allocation percentage
1 Equities 99.54%
2 Cash and cash equivalents 0.46%
3 Debts 0.00%
  • Allocation in different stocks
S.no Type of stocks Allocation percentage
1 Large-cap stock 58.34%
2 Mid-cap stocks 39.62%
3 Small-cap stocks 2.04%
  • Allocation of equities percentage in different sectors
S.no Type of sector Allocation percentage
1 Financial 27.81%
2 Technology 10.78%
3 Automobile 8.43%
4 Energy 8.11%
5 Consumer staples 4.53%
6 Chemicals 4.94%
7 Others 22.1%
  • Top 5 holdings in the scheme
S.no Company name Holding percentage
1 ICICI 5.96%
2 Infosys 5.51%
3 HDFC 5.13%
4 Axis Bank 4.03%
5 State Bank of India 3.7%

How to invest in this fund?

To invest in this fund, you should know the following details:

  • Earlier, the minimum investment into the fund was Rs 5000, and any additional investment had to be a minimum of Rs 1000. However, now any new lump sum subscription, through any mode, has been temporarily suspended by the fund.
  • For the Systematic Investment Plan (SIP), the minimum investment is Rs 1000. The maximum investment has been reduced from Rs 25,000 to Rs 2500. Furthermore, the fund has temporarily suspended SIPs through quarterly mode. Only monthly mode is allowed right now. However, all earlier SIP registrations with investments of more than Rs 2500 will remain in force. This rule applies only to new registrations.
  • There are two plans available: Regular and Direct. Under both these plans, there will be two options: The growth option and the dividend option.
  • The dividend option is further divided into two more options: The payout option and the reinvestment option.
  • The expense ratio of the regular plan is 1.66%, and that of the direct plan is 0.76%.
  • The ideal investment horizon for the fund is a minimum of 3 years. 

What is the load structure of the fund?

    • There is no entry load.
  • For exit load:
Particulars Exit load
  • For investors who opted for SWP 15% of units allotted on or before the completion of 1 year from the date of allotment and redeemed their units after 1 year.
  • For investors who didn’t opt for SWP and redeemed their units after completion of 1 year.
Nil
  • Any redemption above such limit within the first 1 year (including investors who have opted for SWP)
1% 

Recent updates about the fund 

  • Net Asset Value as of 26 April 2022
  1. Regular Plan – Growth Rs 94.883
  2. Regular Daily IDCW  Rs 40.571
  3. Direct Plan – Growth Rs 103.545
  4. Direct Daily IDCW Rs 67.589
  • Fund performance
Particulars Returns %
Since inception 21.16%
1 yr 19.60%
3 yrs 21.00%
5 yrs 16.40%

In a nutshell

This article gives you a detailed overview of the Mirae Asset Emerging Blue Chip fund. With its emphasis on quality, growth and superior performance at a reasonable price, this fund has been leading the charts for two consecutive years. Thus, it is proving to be a worthwhile investment.  

References :

https://economictimes.indiatimes.com/mirae-asset-emerging-bluechip-fund–regular-plan/mffactsheet/schemeid-11213.cms

https://www.miraeassetmf.co.in/mutual-fund-scheme/equity-fund/mirae-asset-emerging-bluechip-fund

https://groww.in/mutual-funds/mirae-asset-emerging-bluechip-fund-direct-growth