Review: Mirae Asset India Opportunities Fund NFO: Finance Trading Times

Review: Mirae Asset India Opportunities Fund NFO

Mirae Asset Mutual Fund has launched its first ever equity fund in India. The offering from Mirae Asset MF is called Mirae Asset India Opportunities Fund.
The fund is an open-ended diversified equity fund, which means that any no. of units can be created and redeemed as per the demand and supply of the Mutual fund units.
The fund is said to have an objective to generate long-term capital appreciation by capitalizing on potential opportunities through predominantly investing in equities and equity related securities.

On their official website of Mirae Asset Mutual fund and in advertisements in leading news papers of the country, they have the following table to make some claims:

The claim is that at any given point of time, there are few sectors which are underperforming, while there are a few sectors which are out performing – A fact very well known even by every Tom, Dick and Harry in the world of investments and trading.. Also, the data presented in table above confirms the same. For e.g. in 2003, it was Metal, Capital Goods and Auto sectors that performed well over other sectors, while in 2005, Consumer Duarables, Capital Goods and FMCG outperformed others. In 2007, Metal, Capital Goods and Oil & gas beat the rest of the sectors. Nothing wrong in these numbers as they are based on historical data. But the claim for the future is based upon these historical assumptions.

Mirae Mutual Fund claims that it has the capability to pick and choose the outperforming sectors and hence this mutual fund money will be switched between the stocks belonging the sectors that Mirae MF believes will outperform. How well they can do it, is a debatable question and is left to the investors to decide upon.

Interestingly, This is the first ever mutual fund by Mirae in India. They have been an international asset management company in the past and have now offered their first ever fund in India. Ultimately, this is another new NFO of a Mutual fund with the same kind of claims – no guarantee of any returns. Mirae claim to use their international experience and equity research for the benefit of their investors, hence investors can make a bet.

The New Fund Offer priced at Rs.10 per unit (plus applicable entry load)
Open from: 11 February 2008 to 10 March 2008.
The fund would invest between 65-100% in Indian equities and equity related securities and 0-30% in money market instruments and debt securities investments. It includes investment up to 25% of in securitised debt.
Minimum amount for investments: Rs. 5000 and thereafter in multiples of Re 1.
Entry load: 2.25% for each purchase of less than Rs. 5 crore. Nil for higher amounts
SIP Facility is available: The fund offers SIP facility even during the new fund offer. For SIP, the minimum investment is 6 installments of Rs 1000 each or 4 installments of Rs. 1500 each, i.e. Rs 6000 and thereafter multiples of Re.1. A major benefit to the investors' is that there is no entry load on the SIP investments.
Benchmark Index: BSE 200 Index.
Offers Tax benefits: NO
The fund house is also planning to launch a quant-based fund. All the best to investors who want to invest in Mirae Asset India Opportunities Fund! Table of Contents
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