The fund aims to help investors gain from sector or stock specific opportunities. The prudent investment strategies followed by the fund has earned it a tag of being a consistent performer that has rewarded long-term investors well across market cycles.

Launched just ahead of the 2008 subprime crisis, Mirae Asset India Equity Fund suffered a huge loss in its initial year itself, dragging down the funds NAV to as low as Rs 5.48 (on 09 March 2009), a loss of about 45% on its face value. However, the fund was quick to recover its losses in the swift market rally that followed. Despite being in existence for over 10 years now, the fund seems to have started gaining popularity only in the last couple of years. While it took almost 7 years for the fund to reach the 1,000 crore mark, the funds AUM has grown 8 folds in the last 3 years. This clearly indicates that not many investors identified the true potential of the fund, until it made a mark for itself through its remarkable performance.

The fund manager Neelesh Surana aims to outperform the benchmark and follows a rigorous investment process that leads to alpha generation. He looks at business on various quantitative and qualitative parameters and gives high importance to quality and scalable business run by credible management. He looks for growth businesses, but then again evaluates the value before buying into them. Managing Mirae Asset India Equity Fund since August 2014, Neelesh has done well to meet the expectations of its investors in terms of returns.

Fund Facts – Mirae Asset India Equity Fund

Category	Multi Cap Fund	Style	Blend
Type	Open ended scheme	Market Cap Bias	Multi Cap Fund
Launch Date	9-Apr-08	SI Return (CAGR)	16.70%
Corpus (Cr)	Rs 8,531	Min./Add. Inv.	Rs 1,000 / Rs 500
Expense Ratio (Dir/Reg)	1.32% / 2.1%	Exit Load	1%

Portfolio Data as on July 31, 2018.
SI Return as on September 04, 2018.
(Source: ACE MF)

Growth Of Rs 10,000, Invested In Mirae Asset India Equity Fund 5 Years Ago

Mirae Asset India Equity Fund: Year-on-Year Performance

However, in the current calendar year the fund has been going through a tough phase where it has trailed the benchmark by about 3 percentage points. This seems to be a temporary underperformance, given its ability to outperform the index consistently. Barring the current calendar year, the fund has delivered better returns than its benchmark in almost all the years since its inception.

Mirae Asset India Equity Fund: Performance Vis-à-vis Category Peers

Scheme Name	Corpus (Rs Cr)	1 Year (%)	2 Year (%)	3 Year (%)	5 Year (%)	Std Dev	Sharpe
Motilal Oswal Multicap 35 Fund	13,861	22.62	24.56	19.35	--	14.06	0.16
Principal Multi Cap Growth Fund	690	25.38	25.38	16.22	22.60	16.34	0.17
Aditya Birla SL Equity Fund	9,749	17.85	23.02	15.92	23.63	13.59	0.17
SBI Magnum Multicap Fund	5,850	20.54	20.54	15.91	22.59	12.95	0.17
Invesco India Multicap Fund	551	23.26	21.63	15.36	26.68	15.26	0.14
Kotak Standard Multicap Fund	21,271	19.00	21.44	15.22	22.50	12.60	0.19
Mirae Asset India Equity Fund	8,531	21.50	21.97	14.97	22.40	13.30	0.19
Parag Parikh Long Term Equity Fund	1,186	21.55	18.35	14.06	20.59	9.85	0.23
BNP Paribas Multi Cap Fund	891	21.29	20.15	14.02	20.62	14.08	0.10
Edelweiss Multi-Cap Fund	102	25.74	21.96	13.56	--	14.67	0.14
ICICI Pru Multicap Fund	2,888	15.16	18.13	12.98	20.16	12.57	0.15
DSP Equity Fund	2,672	19.21	20.12	12.33	19.18	14.91	0.12
Franklin India Equity Fund	11,832	16.09	16.17	12.20	20.45	11.73	0.12
HSBC Multi Cap Equity Fund	637	18.93	19.55	12.14	20.77	14.68	0.13
IDFC Multi Cap Fund	5,678	18.49	15.92	11.39	21.21	13.49	0.07
L&T Equity Fund	2,798	18.67	18.19	11.23	18.84	13.14	0.11
HDFC Equity Fund	21,754	17.98	20.31	10.89	18.68	16.76	0.11
IDBI Diversified Equity Fund	372	18.19	14.88	10.88	--	12.14	0.06
UTI Equity Fund	8,521	19.31	15.89	10.33	17.92	12.40	0.15
Canara Rob Equity Diver Fund	939	20.99	18.26	10.15	16.20	14.07	0.11
Baroda Pioneer Multi Cap Fund	723	16.51	16.82	9.98	16.60	13.42	0.07
Reliance Multi Cap Fund	9,732	19.71	15.61	8.79	18.51	15.17	0.04
Taurus Starshare (Multi Cap) Fund	222	14.68	15.32	8.38	14.88	14.28	0.04
Union Equity Fund	221	14.58	14.27	6.43	13.24	12.73	0.05
LIC MF Multi Cap Fund	275	11.14	11.47	4.65	12.24	15.51	-0.01
S&P BSE 200 - TRI		19.86	18.81	11.37	16.41	13.11	0.10

Returns are on a rolling basis and those depicted over 1-Yr are compounded annualised.
Data as on September 04, 2018
(Source: ACE MF)

*Please note, this table only represents the best performing funds based solely on past returns and is NOT a recommendation. Mutual Fund investments are subject to market risks. Read all scheme related documents carefully. Past performance is not an indicator for future returns. The percentage returns shown are only for indicative purposes.

Mirae Asset India Equity Fund has been a top quartile performer. It consistently ranked among the top funds in its previous opportunities style category, while its ranking in the current multi-cap funds category is not bad either. Despite being aggressive in nature, the funds ability to limit downside and perform well even in depressing conditions differentiated it from the rest.

With a Standard Deviation of 13.30, the funds volatility has been nearly in line with the benchmark (13.11), but reasonable when compared to its category peers. Moreover, the Sharpe Ratio of the fund at 0.19 has been one of the best in the category and much ahead of its benchmark (0.10). Its ability to deliver superior risk-adjusted returns for its investors has been commendable.

Investment Strategy of Mirae Asset India Equity Fund

Mirae Asset India Equity Fund follows a combination of top down and bottom up approach to stock picking and endeavours to invest in companies which have a chance of benefiting from economic growth and structural changes happening in the country. The fund has proven its ability to timely identify sector and stock specific opportunities.

The fund usually holds a large cap bias with some allocation towards mid cap stocks and invests in a well-diversified portfolio of about 55-65 stocks. Mirae Asset India Equity Fund has a tendency to vary its investment strategies depending on the external factors. It resists from following any market momentum and stays fully invested at most of the times. The fund has a history of taking timely sector bets. The cyclical bets taken by the fund manager has helped increase the return generated by the fund during economic recoveries.

Mirae Asset India Equity Fund - Portfolio Allocation and Market Capitalisation Trends

Its classification under Multi cap funds category provides Mirae Asset India Equity Fund a flexibility to move across market caps depending on their valuation. However, the fund's portfolio remains inclined towards large caps (about 75%-90% of its assets) which provides the much needed stability to the fund. Over the last one year, the large-cap allocation in the fund's portfolio has ranged between 80%-90% of its assets, while the allocation to mid-caps has been in the range of 7%-15%. The fund resits from holding any exposure to small caps. Despite being a multicap fund, Mirae Asset India Equity Fund operates more like a large cap fund and holds negligible exposure to other market caps.

Mirae Asset India Equity Fund – Top Portfolio Holdings

Top 10 Stocks Stocks % of Assets HDFC Bank Ltd. 8.60 Reliance Industries Ltd. 6.00 ICICI Bank Ltd. 4.65 Infosys Ltd. 4.29 State Bank Of India 3.84 ITC Ltd. 3.75 Kotak Mahindra Bank Ltd. 3.62 HDFC Ltd. 3.37 Larsen & Toubro Ltd. 3.17 Maruti Suzuki India Ltd. 2.91	Top 5 Sectors
Holdings (in %) as on July 31, 2018 (Source: ACEMF)

In terms of portfolio holdings, Mirae Asset India Equity Fund holds a well-diversified portfolio of about 67 stocks. The fund is not completely benchmark agnostic, as it does not deviate significantly from its benchmark. Out of 67 stocks in the portfolio at present, 58 belong to the S&P BSE 200 universe. These 58 stocks carry about 71% weightage in the index, while about 92% weightage in the portfolio.

As of July 31, 2018, the fund held its major exposure in highly liquid stocks like HDFC Bank, Reliance Industries, ICICI Bank, Infosys, SBI, ITC, Kotak Mahindra Bank, HDFC Ltd., L&T and Maruti Suzuki together accounting for about 44% of its assets. Most of these names have been prominent holdings in the fund’s portfolio for well over 2 years now.

About one fourth of the fund’s portfolio is skewed towards Banking, followed by I.T., Petroleum Products, Consumption and Auto together accounting for around 62% of the portfolio. The remaining portion of the fund’s portfolio is diversified across range of sectors like Financials, Pharma, Engineering, Energy, Cement, Metals, Chemicals and so on. While the fund has increased its allocation to Petroleum Products, Consumption, Financials, Metals and I.T., it has reduced allocation to Transportation, Mining, Auto Ancillaries, Telecom, Cement and Power.

Major Gainers: The holdings in the Mirae Asset India Equity Funds portfolio have shown a mixed trend, in the last one year. Stocks like TCS, Hindustan Unilever, Reliance Industries, Tata Global Beverages, Info Edge (India), Dabur India, Infosys, Havells India, GAIL, Exide Industries, Kotak Mahindra Bank and Asian Paints have been amongst the major gainers in the portfolio that have appreciated in the range of 25-56% in a year’s time.

Major Losers: While there were no many losers in the portfolio, few names like Tata Motors, Ceat, HPCL, JK Cement, Apollo Hospitals, The Federal Bank, Vedanta and Lupin are down 20%-40% in the last one year. However, the fund hardly held over 2% exposure in any of these stocks.

Suitability of Mirae Asset India Equity Fund

Mirae Asset India Equity Fund superior performance and consistent track record has helped it gain investor’s attention. Being a prudently managed fund focusing on quality, the fund deserves decent time for it to reward its investors. While Mirae Asset India Equity Fund holds flexibility to invest across market caps, it has always held a large cap biased portfolio. Although multi-cap mandate demands slightly shift in exposure from large caps to other market caps, the fund still adheres to the mandate with a large cap bias as there being no minimum threshold to any market cap for multicap funds. Mirae Asset India Equity Funds ability to timely identify prevailing opportunities and participate in good quality businesses has helped it provide decent growth to its long term investors. However, it may disappoint investors who expect proper diversification across market caps, from a multicap fund.

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DISCLOSURE AS PER SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014  

About the Company including business activity 

Quantum Information Services Private Limited (QIS) was incorporated on December 19, 1989. 

QIS was promoted by Mr. Ajit Dayal with an objective of providing value-based information / views on news related to equity markets, the economy in general, sector analysis, budget review and various personal products and investments options available to the Public. It was the first company to start equity research on an institutional level.

'PersonalFN' is a service brand of QIS and was started in the year 1999. In 1999, the Company registered the Domain name www.personalfn.com for providing information on mutual funds and personal financial planning, financial markets in general, etc and services related to financial planning and research in various financial instruments including mutual funds, insurance and fixed income products to customers. It offers asset allocation and researched investment recommendations through its financial planning services. 

Quantum Information Services Private Limited (QIS) is registered as Investment Adviser under SEBI (Investment Adviser) Regulations, 2013 and having Registration No.: INA000000680. In terms of second proviso to Regulation 3 (1) of SEBI (Research Analysts) Regulations, 2014 the Company is not required to obtain Certificate of registration from SEBI.

Disciplinary history

There are no outstanding litigations against the Company, it subsidiaries and its Directors. 

and condition on which its offer research report. For the terms and condition for research report click here.

Details of associates

1. Money Simplified Services Private Limited;
2. PersonalFN Insurance Services India Private Limited;
3. Equitymaster Agora Research Private Limited;
4. Common Sense Living Private Limited;
5. Quantum Advisors Private Limited;
6. Quantum Asset Management Company Private Limited;
7. HelpYourNGO Private Limited;
8. HelpYourNGO Foundation;
9. Natural Streets for Performing Arts Foundation;
10. Primary Real Estate Advisors Private Limited;
11. Rahul Goel;
12. I V Subramaniam.

Disclosure with regard to ownership and material conflicts of interest

1. Neither QIS, it’s Associates, Research Analyst or his/her relative have any financial interest in the subject Company , except QIS receives fees for providing research to Quantum Equity Fund of Fund (QEFoF) which is Fund of Fund scheme managed by QMF.
2. Neither QIS, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report.
3. Neither QIS, it's Associates, Research Analyst or his/her relative has any other material conflict of interest at the time of publication of the research report except that QIS (PersonalFN) is, as per SEBI (Mutual Funds) Regulations 1996, an associate / group Company of Quantum Asset Management Company Private Limited and Trustees and Sponsor of Quantum Mutual Fund (QMF) and to that extent there may be conflict of interest while recommending any schemes of QMF. However any such recommendation or reference made is based on the standard evaluation and selection process, which applies uniformly for all Mutual Fund Schemes. The payment of commission (upfront /annualized & trail), if any, for any Schemes by QMF to QIS (PersonalFN) is also at arm's length and as per prevailing market practices

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1. The Research Analyst has not served as an officer, director or employee of the subject Company.
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Subject Company means Mutual Fund Schemes

Quantum Information Services Private Limited CIN: U65990MH1989PTC054667 Regd. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021 Corp. Office: 103, Regent Chambers, 1st Floor, Nariman Point, Mumbai - 400 021. Email: info@personalfn.com Website: www.personalfn.com Tel.: 022 61361200 Fax.: 022 61361222

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Goswamiutpal1@gmail.com Sep 11, 2018 Which funds are the best performer in 2018 inlarge/midcap.How to invest directly?. Regards Utpal Goswami (member)

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