Mirae asset emerging bluechip fund: Focus on quality management, revenues pays off

ET Intelligence Group: The fund, managed by Neelesh Surana, invests 25-30% in top 100 companies by market capitalisation and the remaining outside Top-100. One of the factors that worked for the fund is its special focus on companies with quality management and valuation. Also, this fund has shown relative resilience in times of weakness in the market.

For instance, in the period between December 31, 2010 and January 2, 2012, when the Nifty fell 24%, this fund fell 15.5%. The fund has achieved this by focusing on companies with high return on capital employed (RoCE), a criteria used by some of the world’s top investors. As the stock market outlook turns uncertain, the fund could be a steady investment.

In the past six months, the fund has exited companies where revenue visibility seems low and whose managements are involved in legal cases. The fund has bought companies which represent distinct themes but where business fundamentals are intact, long-term revenue visibility is high due to industry growth, and management is sound.