Mirae MF caps SIP in Emerging Bluechip to ₹2,500 a month

Suresh P Iyengar Mumbai | Updated on November 05, 2020

Says no to new quarterly investment

Mirae Mutual Fund has reduced systematic investment plan registration in its Emerging Bluechip Fund to ₹2,500 a month from ₹25,000 and suspended the new quarterly SIP investment in the fund from November 6. However, SIPs of existing investors in the scheme will continue as before, said the fund house on Thursday.

In 2016, Mirae Mutual Fund stopped lump sum investment in the Emerging Bluechip Fund and limited inflows through SIP to ₹25,000.

To formulate strategies

The open-ended fund invests in both large and mid-cap stocks.

In just 10 years, the Emerging Bluechip Fund has recorded a strong growth trajectory crossing an asset under management of ₹11,900 crore as on October 30 and commands 20 per cent market share in the large- and mid-cap category.

Swarup Mohanty, Chief Executive Officer, Mirae Asset Investment Managers, said the fund house believes that the step to slow down inflows will enable the fund managers to formulate strategies which will aim to deliver optimum risk adjusted returns to investors.

Depth: A major concern

Last few years have been good for Mirae Mutual Fund. The fund house has crossed an asset under management of ₹50,000 crore as of September-end.

The Emerging Bluechip Fund is a scaleable product and a gradual inflow may benefit investors and give them a best experience, he added.

The lack of depth in stock market has been one of the major concerns of mutual funds which have been garnering huge inflow in the recent times. The mutual fund industry attracts inflow of about ₹6,000 crore monthly through SIP. Anecdotal evidence points that over 80 per cent of SIP investments are in equity schemes.

With such a high inflow, fund houses find it hard to deploy the fund. Moreover, SEBI has classified equity mutual fund schemes into 11 broad category and defined stocks into large, mid and small based on their market cap.

SEBI has also directed mutual funds schemes investments should be true to their labelling.

Published on November 05, 2020

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