Mirae Asset Large & Midcap Fund for Growth

Mirae Asset Large & Midcap Fund for Growth Invest Now

NAV : ₹47.15

It can sometimes be a dilemma to select between large-cap and mid-cap fund, when you invest in equity mutual funds. The Mirae Asset Large & Midcap Fund steps in to come to your rescue.

What Is Mirae Asset Large & Midcap Fund?

The Mirae Asset Large & Midcap Fund is an open-ended equity mutual fund, which primarily invests in the large cap and mid cap companies of India.

Fund Category and Investment Objective

The scheme belongs to Equity Large and Mid Cap. In general, this type of category is a mix of exposure to companies in large caps and mid caps.

Large companies may well have developed a business model, be well known to the market and have reasonably well developed operations. However, a mid-sized company might have more chances for its growth, as it expands its market share, enters into new markets or expands its operations.

However, diversification doesn’t get rid of risk. Large cap stocks as well as mid-cap stocks are sensitive to the equity-market conditions, economic developments, interest rates and earnings growth and investor sentiment.

Regular Plan Growth Option Explained

The Regular Plan is distributed in the main through intermediaries, like mutual fund distributors. The costs of this plan may then be different than the costs of the Direct Plan.

The Mirae Asset Large & Midcap Fund Regular Plan Growth option is geared towards reinvesting income generated in the scheme, instead of making periodic IDCW payouts as is done in the Growth structure.

This is important for investors who are looking to invest for an extended time, in order to allow their investment to compound over time.

How the Growth Option Works

Compounding is similar but works in a slightly different manner.

With them buried in the years of future, it is possible to develop the initial gains. This compounding effect can have a greater significance over a longer investment time frame.

Compounding can decrease in value as well as increase in value; compounding is never a sure way to make money.

Key Features of Mirae Asset Large & Midcap Fund

Key characteristics include:

Fund category: Equity – Large and Mid Cap
Plan covered: Regular Plan Growth
Launch date: July 2, 2010
Benchmark: Nifty Large Midcap 250 TRI
Minimum initial investment: ₹5,000
Minimum additional investment: ₹1,000
Fund structure: Open-ended
Investment focus: Indian large-cap and mid-cap equities

Fund Benchmark

The Mirae Asset Large & Midcap Fund has the Nifty Large Midcap 250 TRI as its benchmark.

A benchmark gives investors a standard to which to compare investments. Rather than a question about the fund’s return, a better question to ask would be: “What was the fund’s performance relative to the market segment which it represents?”

Likewise, a fund can fall down in a market drop, but still outperform its respective benchmark.

Fund Management

In an actively managed equity fund, the portfolio management team influences the constituents which are purchased, held and sold and therefore is a key element of fund management.

Neelesh Surana and Ankit Jain are mentioned as fund managers in the data-sources of the current funds. The EFN manager details on the factsheet of the Economic Times also mention the name of Gopal Agrawal.

The job of a fund manager is to analyze companies and industries, appraise valuation and consider the potential earnings of the companies and the overall market conditions. But no fund manager can completely neutralize market risk and guess the market movements.

Investment Horizon

Large and Mid Cap equity funds are more suitable to invest for long term and for the investors who have a long term investment horizon.

The equity markets do not invariably progress in a linear fashion. There will be times when prices move rapidly up, down, sideways and even surging with hasty rallies. As you need the money in the short-term, a short-term drop in the market may present a challenge.

Therefore, investors are advised to consider investing in Mirae Asset Large & Midcap Fund in a long-term horizon instead of it being a short term savings instrument.

Mirae Asset Large and Mid Cap Fund Direct Growth vs Regular Growth

Mirae asset large and mid cap fund direct growth is a scheme’s Direct Plan Growth.

So, what’s the difference between Direct and Regular?

The main difference is the way in which investors invest in the scheme, and its associated costs. Direct Plans are sold without the distribution network that includes commission from distribution partners or intermediaries (commissioners) called Regular Plans.

Understanding the Difference Between Direct and Regular Plans

The Regular Plan could be beneficial for investors that prefer support and advice from the distributors. The Direct Plan could be useful for investors that prefer to self-manage their mutual fund investments.

Which Plan May Suit Different Investors?

The Regular Plan may be ideal for investors who like the mutual fund distributor’s help in picking and managing their investments.

Direct Plan might be appropriate for investors who are ready to conduct their own research, understand the risks and do their own trading.

Benefits of Investing in Mirae Asset Large & Midcap Fund

Diversified Equity Exposure

The Mirae Asset Large & Midcap Fund has been one of the primary reasons for its popularity for its investment in both large-cap and mid-cap companies.

This may make portfolio building easier, but investors will want to see if the fund has any overlap with other mutual funds in their portfolio.

Potential for Long-Term Capital Appreciation

Equity investments have the potential to be invested in the development of businesses and the economy.

In the long-term, a firm can generate value for its shareholders by enhancing its profits and developing some sort of competitive advantage. A diversified equity portfolio is what a large and mid-cap fund looks to achieve such opportunities.

Professional Fund Management

You don’t have to do the work of researching and monitoring all of the companies; there’s a team of professionals to handle the portfolio.

It can be very helpful to investors who wish to buy into stocks indirectly.

Suitable for Goal-Based Investing

An investment that may exceed inflation over the long-term, such as retirement planning, children’s education and long-term wealth building, may require a long-term investment strategy.

Depending on the individual’s risk level and investment period, an equity fund can be an instrument in such a plan.

Conclusion

The Mirae Asset Large & Midcap Fund provides the investors with a balanced exposure to large-cap as well as midcap equities via an actively managed mutual fund. It offers individuals a choice of investing for long-term gains, and professional portfolio management with its Regular Plan Growth option.