NFO review: Mirae Asset Midcap Fund

Mirae Asset Mutual Fund has launched the Mirae Asset Midcap Fund. The new fund offer (NFO) is open for subscription till July 22. The fund will be managed by Ankit Jain, who also manages the Mirae Asset Great Consumer Fund. The scheme is benchmarked against Nifty Midcap 100 Index (TRI).

“Mirae Asset Mutual Fund is enhancing its product basket to provide varied investment solutions for its investors and partners. We believe that mid cap segment provides a decent entry point for investors, as mid cap stocks are now trading at close to 20 per cent discount to large caps. We believe investors with a three to five year view should be looking at diversifying its portfolio in a mid cap fund,” said Swarup Mohanty, CEO, Mirae Asset Mutual Fund.

The scheme will invest 65-100 per cent of its assets in high-risk stock of mid cap companies. According to a press release by the fund house, the investment objective of the scheme is to provide long-term capital appreciation from a portfolio investing predominantly in Indian equities and equity-related securities of mid cap companies. From time to time, the fund manager may also participate in other Indian equities and equity related securities for optimal portfolio construction.


Should you invest?
Generally, mutual fund advisors are not in favour of retail investors betting on NFOs. They believe that retail investors should stick to established schemes until an NFO comes with a USP that the market is not offering already.
“There are a lot of mid cap schemes with good track records. Retail investors, who have smaller portfolios, should choose a scheme which has proven its worth in different market cycles,” says Harsh Jain, Amfi-registered mutual fund advisor and COO- Groww.in.

“Mirae Asset, as a fund house, is doing really well. There schemes are good. However, we don’t know how their strategies will work in the mid cap fund. Evolved investors who are looking for bets in their satellite portfolios, can look at this scheme. Retail investors should stay away,” Jain adds.

Scheme at a glance:
Category: Mid Cap
Plans: Growth, Dividend
Benchmark: NIFTY Midcap 100 TRI
Type: Open-ended
Minimum SIP Investment: Rs 1,000
Minimum Investment: Rs 5,000
Exit Load: 1% for redemption within 365 days