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If you are saving towards a long-term goal and are looking for a fund that will help grow your money so as to help you comfortably reach your goal, Mirae India Opportunities is one scheme you could consider for four reasons.
One, being a multi-cap fund, it has the flexibility to juggle allocations across the market cap curve, depending on market conditions.
The fund has traditionally had a higher large-cap skew and this has helped it contain downsides during market falls.
For instance, consider the period April 2008 to March 2009; even as the scheme’s benchmark BSE 200 index halved during this period, the fund managed to contain the fall in its NAV at less than 45 per cent. Likewise, during the market correction which started in November 2010 and lasted till December 2011, the scheme has been able to arrest the decline at less than 22 per cent. This is lower than the 30 per cent fall in the benchmark BSE 200 Index.
Small-caps add spiceThe fund has significantly outperformed its benchmark during recovery phases too. Compared to other mid-cap funds the fund leans towards larger mid-cap stocks with stringent quality filters in place for the business.
The returns have been spiced up by its mid and small-cap stock picks, with some of the scheme’s picks, such as Kalyani Investment Company, HSIL, Mahindra CIE Automotive and UPL delivering multi-fold returns between August 2013 and March 2015.
Two, besides significant outperformance vis-à-vis its benchmark and peers across one, three and five-year timeframes, the fund scores very high on consistency. In the last five years, the scheme’s annual returns have been higher than its benchmark almost 99 per cent of the time.
Three, the fund’s expense ratio of about 2.41 per cent (as of September 30, 2015) is lower than peers’, such as BNP Paribas Equity (2.48 per cent), Franklin India Opportunities (2.81 per cent), HDFC Premier Multicap (2.8 per cent) and ICICI Prudential Multicap (2.51 per cent). Finally, besides relative performance and consistency, the fund also scores on risk adjusted returns basis. As of February 2016, the fund held about 65 stocks in its portfolio.
In the past year the scheme has increased exposure to FMCG, oil and gas and power stocks while reducing exposure to financials, pharma and IT space.
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