Mirae Asset Mutual Fund has increased maximum investment limit through SIP in its Emerging Bluechip fund to ₹25,000 per PAN per month from October 10 on the back of improved economic growth prospects.

The fund had capped maximum investment in the fund at ₹2,500 per month in November 2020 to protect existing investors interest amid huge inflows.

Diverse market

After the recent IPO rush, the market has grown significantly more diverse with the introduction of more than 45 newly-listed mid-cap companies spanning a range of sectors, including financials, fintech, e-commerce, discretionary, chemicals, logistics, healthcare, real estate, retail, and capital goods over the past few years.

Many of the mid-cap companies are now much larger and leaders in their respective categories such as building material, footwear, diagnostics, EMS, industrials, media and fintech.

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In general, mid-caps have been the beneficiaries of massive ongoing consolidation driven by GST, digital disruption, regulatory compliance against unorganised sector.

Taking into consideration the above factors and with a view to provide meaningful participation to investors in the scheme without impacting the interest of existing unitholders, the fund house has decided to increase the subscription limit through SIP in Emerging Bluechip Fund from October 10, it said.

Robust mid-caps

Since November 2020, the AMC said equities have scaled to new highs with key indices such as Nifty, Nifty Midcap 150 Index and Nifty Smallcap 250 Index rising about 1.6 times, 2.2 times and 2.4 times as of September-end.

The aggregate market cap of Nifty Midcap 150 index has increased by 120 per cent to ₹57.6-lakh crore from November 2020 to September 2023. Market liquidity of mid-cap companies has increased considerably with aggregate 3-month average daily traded value growing by 70 per cent from ₹11,200 crore in November 2020 to ₹18,700 crore in September.

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Aggregate net profit of Nifty Midcap150 index has grown 170 per cent to ₹2.17-lakh crore between November 2020 and September 2023.

Swarup Mohanty, Director & CEO, Mirae Asset Investment Managers (India), said the rupee cost averaging effect of SIP balances out cost of unit accumulation and equalises them over long period, which lowers the effect of extreme fluctuations in price or market volatility. SIP investments done over the long term do not get impacted so much by the prevailing valuations, he said.

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