Investing in equity mutual funds could seem an intimidating job, especially if you are a beginner in the domain. Not only would you have to choose from a range of schemes and determine a performance-oriented fund to invest in, but would also have to identify the type of fund that most resonates with your needs.
The different types of equity mutual funds that are available in the market are large-cap mutual funds, mid-cap mutual funds, small-cap mutual funds, multi-cap mutual funds, etc.
In this article below, we will focus particularly on what is a large-cap fund, what is the Mirae Asset Large Cap Fund, the objectives of the fund, and everything that you as an investor should know about it!
First Things First: What Are Large Cap Funds?
Large Cap Mutual Funds are the equity funds that invest a larger percentage of their total assets in companies with a high market capitalization. These companies are well-known and have a proven track record of providing long-term wealth to their investors. As a result, large-cap funds are recognized for generating consistent dividends and wealth accumulation.
Large-cap funds are less risky than small-cap or mid-cap funds, and they are considered to produce more consistent returns. Large-cap funds are an excellent choice for investors with a low-risk tolerance and a long-term investment goal.
What Is The Mirae Asset Large Cap Fund?
The Mirae Asset Large Cap Fund is a large-cap equities mutual fund that is open-ended. It invests primarily in large-cap company stock and equity-related instruments, aimed at long-term capital growth during its investing period. Mirae Asset Large Cap Fund was established on April 4, 2008, and has been in operation for 13 years.
The previous name of this fund was Mirae Asset India Opp Reg Gr. The goal of this fund is to outperform the benchmark while maintaining a reduced risk profile. The fund is managed by Mr. Gaurav Misra and Mr. Harshad Borawake of Mirae Asset Investment Managers (India) Private Limited.
The investment objective of the fund is to create long-term capital appreciation by focusing on large-cap shares and capitalizing on prospective investment opportunities. The Scheme does not promise or guarantee any specific results.
Investment Strategy Of The Mirae Asset Large Cap Fund
- Invests over 80% of its assets in large-cap stocks from the top 100 companies in the world by market capitalization.
- aims to combine large-cap consistency with a few high-conviction midcap ideas up to a maximum of 20%.
- Can invest in a variety of industries and themes.
- Focuses on purchasing high-quality businesses at a fair price and keeping them for a lengthy period.
- Seeks businesses with a long-term competitive advantage, stocks with significant pricing power, and industry leadership.
Who Should Invest In Mirae Asset Large Cap Fund?
The following types of investors should consider investing in Mirae Asset Large Cap Fund:
- Investors seeking capital growth or wealth building over a lengthy period of time.
- Investors who are willing to take moderate to high risks in order to create wealth.
- Investors who have a minimum investment period of 3-5 years.
- Investors who want their equity mutual fund to be more stable.
- Investors who are making their first investment and have a lengthy investment plan. The fund might be a part of their long-term investment strategy.
Why Should You Consider Investing In Mirae Asset Large Cap Fund?
You should consider investing in this fund because it has lower volatility, the fund is typically less impacted by economic cycles, has more stability, provides regular dividends, and strives to offer consistent capital appreciation.
Another reason to consider investing in the Mirae Asset Large Cap Fund is that it is run by experienced fund managers with a total experience of 38 years.
The Mirae Asset Large Cap Fund offers two plans: Regular and Direct, both of which have the same portfolio but different NAVs. The Plan for which the subscription is made should be indicated in the application form by the investor.
Each of the scheme’s Regular and Direct Plans will have two options, the Growth option, and the Dividend option. There will be two sub-options under the Dividend option, Dividend Payout, and Dividend Reinvestment.
Mirae Asset Risk Profile
Market risks affect the fund’s performance. Depending on market conditions, the funds’ returns might be variable, or even negative. It has a moderate high-risk profile. Investors should be aware that their main investment in this fund is subject to a moderately high level of risk.
Closing Thoughts: Mirae Asset Growth Review
Large-cap mutual funds generate long-term growth that exceeds inflation. These funds are appropriate for wealth development and capital appreciation over a 10-year or longer investment period.
The Mirae Asset Large Cap Fund has a 13-year history and the track record is exceptional. It is high in size for its category, with an AUM or relative size of Rs 25,722 crore and has continuously performed well over time, and the returns achieved are comparable to those of other mutual funds in the same category.
1. What is the minimum investment required to invest in Mirae Asset Large Cap Fund?
The fund requires a minimum SIP investment of Rs 1000 and a minimum lump sum investment of Rs 5000
2. What are the NAV and returns of the Mirae Asset Large Cap Fund?
As of 22nd June 2021, the NAV of the fund is Rs 70.74. The returns are at 15.90% since the inception of the fund.
3. What is the expense ratio of the fund?
The expense ratio of the Regular Plan is 1.62%, and that of the Direct Plan is 0.54%.
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