In this article, we will analyse how good is this Mirae Asset Emerging Bluechip Fund NFO, whether this Mirae Asset Emerging Bluechip Fund offers anything new or unique for the investors and whether the investors should invest in Mirae Asset Emerging Bluechip Fund .
Mirae Asset Emerging Bluechip Fund NFO: Review Analysis & DetailsLet's begin with some basic details about Mirae Asset Emerging Bluechip Fund.
What are the NFO dates for Mirae Asset Emerging Bluechip Fund ?
The NFO for Mirae Asset Emerging Bluechip Fund is currently open and will close on 22nd June 2010. After that, regular buying and purchasing will commence through the end of the day NAV system.
What is so unique about this Mirae Asset Emerging Bluechip Fund ?
It is a market sector specific fund - by market sector we mean it will focus and invest primarily in midcap companies - To be specific, this fund will look for companies which are NOT in top 100 companies as per the market capitalization but are having market cap greater than 100 Crores. Hence, the primary focus in on MIDCAP.
Now the Mirae Asset Mutual fund house has put up a chart showing how the CNX MidCap Index has outperformed the BSE Sensex over the last 9 year period. However, I beg to differ on that. Please see the article Large Cap ETF v/s Mid Cap ETF: Historical Performance Check for a comparison between MidCap and LargeCap stocks. So Mirae Asset fund house chart shows midcap outperforming, while the analysis on our side show Largecap outperforming. Ultimately, it boils down to the time of your investment and when you book your profit - in essence, it all works randomly.
They claim that tomorrow's blue chip companies will be from today's midcap companies. So the fund manager will be attempting to select the few winners of tomorrow and that's where investors money will be betted on.
However, adding a Midcap specific fund to your portfolio will be good from the point of view of diversification. Whether it works in your favour or not is a different story altogether, and depends on loads of things, the primary ones being the stock picking skills of the mutual fund manager, the overall midcap sector performance, the performance of the stocks selected by the fund manager and your timing of entry and exit from a particular fund or investment.
The Mirae Asset Emerging Bluechip Fund will be benchmarked to CNX MIDCAP Index.
The plan is to have 65-100% investment in Nifty Index equities and derivatives in PSU related stock companies. 0 to 35% will be debt and money market instruments.
Purchases : Rs. 5000/- and in multiple of Re. 1 thereafter.
SIP or Systematic Investment Plan is also available.
Investment Options for Mirae Asset Emerging Bluechip Fund :
- Dividend (Payout and Reinvestment)
No Tax Benefit is available in the Mirae Asset Emerging Bluechip Fund
The entry load for Mirae Asset Emerging Bluechip Fund is as follows:
Entry Load for Mirae Asset Emerging Bluechip Fund :
Zero Entry Load
Exit Load for Mirae Asset Emerging Bluechip Fund:
Exit within 1 years from the date of allotment - 1 %;
Exit after 1 years from the date of allotment - Nil
Final Thoughts about the Mirae Asset Emerging Bluechip Fund?
By investing in this fund, one is betting on the Midcap Sector, that too specific to the stock picking skills of the fund manager and also on the performance of the midcap companies.
Overall, this Mirae Asset Emerging Bluechip Fund is just another new fund offer for a particular sector, without anything unique that sets it apart from other sector specific funds