Mirae Asset AMC has announced to change the current Multi Cap category to Large Cap with effect from 1st May 2019.
Today’s blog is all about performance, risk rating and takeaways for existing or new investors of this fund.
Reasons for change to Mirae Large Cap Fund
CEO Mr. Swarup Mohanty’s arguments are:
- The fund was managed as Large cap for last 4 years.
- The fund will hold midcaps according to SEBI rules, i.e. 15% – 18%
- Growing AUM (Assets Under Management)
A Multi Cap Fund is an Open Ended Equity Scheme investing across Large Cap, Mid Cap and Small Cap stocks. Now, the CEO says from last 4 years, the fund was managed as Large cap, which also means the fund manager has not exercised his right to invest across sectors.
Does’nt sound convincing
For eg:- If I wanted to buy this fund, then i would had gone through scheme document, key information memorandum, one pagers, amc classification, rating portals etc, I would have got impression as a Multi Cap fund.
So, when i had a look at portfolio nearly 87% is in Large cap, 11.5% in Midcap and sparing allocation to small cap.
Many investors will have to re-jig their portfolios now due to change of the scheme mandate which is a frustating job.
Rolling Returns and Risk (5 years)
Rolling Returns and Risk (2 years)
2 and 3 years
New Investor: Should I Stop / Exit?
If you have another Large cap fund, then decide which one you want to hold. All large cap fund performance will be approx same…(just few % more or less)
Existing Investor: Should I Stop / Exit?
If you have a major allocation in this fund, kindly review the situation and act upon what suits you the best.
Evaluate your position carefully. Focus on risk management instead of aggressive returns.
Investors willing to Exit from this scheme can do it freely in April 2019. No Exit Load will be levied.
Investors who cannot evaluate their scheme’s performance based on risk analysis can reach us. We will be happy to help.