Top MFs: Mirae Asset Large Cap Fund Direct

Objective

Mirae Asset Large Cap Fund Direct- Growth is a Large Cap mutual fund scheme from Mirae Asset Mutual Fund. This fund has been in existence for 9 yrs, having been launched on 01/01/2013.

Mirae Asset Large Cap Fund Direct- Growth has ₹31,129 Crores worth of assets under management (AUM) as on 31/12/2021 and is medium-sized fund of its category. The fund has an expense ratio of 0.53%, which is higher than what most other Large Cap funds charge.

Fund Highlights

Its trailing returns over different time periods are: 33.04% (1yr), 16.91% (3yr), 17.02% (5yr) and 16.1% (since launch). Whereas, Category returns for the same time duration are: 33.68% (1yr), 16.58% (3yr) and 16.06% (5yr).

Sector wise and company wise holdings

 The fund has the majority of its money invested in Financial, Technology, Energy, Healthcare, Construction sectors. It has taken less exposure in Financial, Technology sectors compared to other funds in the category.

 The fund's top 5 holdings are in Infosys Ltd., ICICI Bank Ltd., HDFC Bank Ltd., Reliance Industries Ltd., State Bank of India.

 The scheme aims to maximize long term capital appreciation by finding investment opportunities resulting from Indian economic growth and its structural shifts through investing in equity and equity related securities.

Asset Allocation & Portfolio Composition

1. The asset allocation of the fund comprises around 99.22% in equities, 0.0% in debts and 0.78% in cash & cash equivalents.

2. While the top 10 equity holdings constitute around 52.31% of the assets, the top 3 sectors constitute around 56.88% of the assets.

3. The fund largely follows a Growth oriented style of investing and invests across market capitalisations - around 84.0% in giant & large cap companies, 13.89% in mid cap and 2.12% in small cap companies.

Tax Implications

1. Gains are taxed at a rate of 15% (Short-term Capital Gain Tax - STCG) if units are redeemed within 1 year of investment.

2. For units redeemed after 1 year of investment, gains of upto Rs. 1 lakh accruing from those units in a financial year shall be exempted from tax.

3. Gains of more than Rs. 1 lakh will be taxed at a rate of 10% (Long-term Capital Gain Tax - LTCG).

4. For Dividend Distribution Tax, the dividend income from this fund will get added to the income of an investor and taxed according to his/her respective tax slabs.

5. Also, for dividend income in excess of Rs 5,000 in a financial year; the fund house shall deduct a TDS of 10% on such income.

Fund Manager

Gaurav Misra

Education - Mr. Misra has done BA ECO (HONS) and MBA, IIM Lucknow

Experience - Mr. Misra has over 24 years of experience in investment management and equity research functions. Prior to joining Mirae Asset Mutual Fund, he has worked as Senior Portfolio Manager with ASK Investment Managers Limited

Expert Comment

Mirae Asset Large Cap Fund Direct- Growth scheme's ability to deliver returns consistently is higher than most funds of its category. Its ability to control losses in a falling market is above average.

The suggested investment horizon of investing into Mirae Asset Large Cap Fund - Regular Plan is >3 years.

The suggested investment horizon is the minimum time required for holding investments in the fund to reduce its downside risk and ensure that the returns become more predictable.