Mirae Asset Emerging Bluechip

AUM Rs 157.30 CRORE ................................................. AS ON DECEMBER 31, 2013
NAV Rs 15.96....................................................................AS ON FEBRUARY 28, 2014

Neelesh Surana
Head Equity 
Mirae Asset Global Investments (India)

Living up to its name Mirae Asset Emerging Bluechip has indeed been a one which had created value for its investors and created a league of its own bluechip stocks. For instance if you had invested Rs 1000 per month for the last three years, then the incremental value of Rs 36000 investment now stands at Rs 46932. This shows the inherent strength of the fund to create value in the longer term. Managed by Neelesh Surana since May 2010, the AUM of the fund has increased from Rs 23.94 crore in 2010 to Rs 157.28 crore as of December 31, 2013.

The fund works with the objective of generating income and capital appreciation from a diversified portfolio predominantly investing in Indian equities and equity related securities of companies which are not part of the top 100 stocks by market capitalisation and have market capitalisation of at least Rs 100 Crores at the time of investment. This fund has done well in its short history of a little over three years by investing in companies that have the potential to become bluechips of the future.

By mentioning ‘done well’, what we meant to say is that the fund has been able to beat its category returns in the span of three year, one year and also in the three month period. As far as the performance as compared to its benchmark CNX Midcap in the last one year, the fund has generated a return of 24.08 per cent as compared to the negative return of 2.02 per cent generated by its benchmark. 

The fund has spread its holding across the mid and small cap companies. However, the concentration is a bit tilted toward the mid cap companies which comprises of 60 per cent of the total holdings while large cap (17.08 per cent and small cap (23.26 per cent) forms the rest. At present the scheme of 56 stocks is invested 95.45 per cent in equities and the rest they are holding in cash. 

The stocks that have generated major gains for the fund includes names like Divi’s Laboratories, IPCA Labs, Amara Raja Batteries, Eclerx Services to name a few. The investment of the fund is well diversified. The top five sectors comprise more than 64 per cent of the portfolio in a fund. The top five sectors are Healthcare (18.74 per cent), Financial (17.37 per cent), Services (12.08 per cent), Chemicals (8.07 per cent) and Energy (7.76 per cent). 

Also in terms of holding the top five stocks viz. Tech Mahindra, Divi's Laboratories, Ipca Laboratories, Amara Raja Batteries and Federal Bank forms 21 per cent of the total assets held by the fund.

Better performance of the fund has not come at a cost of taking risk. This statement can be supplemented by looking at the sharp ratio which stands at 0.64. The alpha of the fund stands at 10.69, which is one of the highest among its peers. Alpha represents the excess return that fund has generated at a given level of risk.

The fund can be an ideal candidate to form a part of the mutual fund portfolio of a risk taking investors. However, an SIP route for investors seems to be the best way to invest in this fund scheme.