Fund review: Mirae Asset India Opportunities Fund

The consistent liquidity flow into markets has more to do with money that has come into the system post demonetisation and lack of other attractive investment options. Given this situation, from the point of view of conservative investors, it makes sense to be with steady performing companies which can cap the fall in returns.

Among the large-cap schemes, Mirae Asset India Opportunities is one of the most stable and consistently better performing schemes.The scheme's fund manager, Neelesh Surana, follows two key principles. One, to buy companies that not only have high return on capital employed, but also generate consistent and incremental cash flows. Two, the fund manager bears in mind the attractiveness in valuations of the company.

It is observed that the scheme has 5-10 per cent higher exposure to large sized companies than its peers. To a large extent, these factors have helped the scheme score over its peers. In the past one-year and three-year periods, the scheme has generated 28.6 per cent and 18.3 per cent returns, respectively, while its benchmark index S&P BSE 200 has given 21.4 per cent and 10.1 per cemt returns, respectively, in the same periods.

In the past six months, the scheme's fund manager has invested in companies which not only have earnings visibility but also provide valuation comfort. The scheme's new fund manager Harshad Borawake is expected to follow the same strategy which Neelesh Surana has diligently followed and implemented.