Mirae Asset to Resume SIP, STP, and Lumpsum Investments in Large & Midcap Fund Starting Aug 1
The fund will resume accepting subscriptions through Systematic Investment Plans (SIP), Systematic Transfer Plans (STP), switch-ins, and lump-sum investments.
Mirae Asset Investment Managers (India) Pvt. Ltd is pleased to announce the withdrawal of the existing temporary suspension on subscription through Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), Switch-ins & Lumpsum in Mirae Asset Large and Midcap Fund (‘the Scheme’) and enabling other facilities w.e.f. Thursday, August 01, 2024. The fund will resume accepting subscriptions through Systematic Investment Plans (SIP), Systematic Transfer Plans (STP), switch-ins, and lump-sum investments.
The decision to lift the existing temporary suspension on subscription through various modes is based on multiple factors, including the expansion of the investment universe, increased market depth and liquidity, and the overall growth in fund size. Since the initial restriction in November 2020, which limited SIP investments to Rs 2,500 monthly (later increased to Rs 25,000 in October 2023), Indian equities have experienced substantial growth. The Nifty 50 Total Return Index (TRI) and Nifty Midcap 150 TRI have risen by approximately 1.2 times and 2.3 times, respectively, as of July 24, 2024 (Source: NSE India).
The Indian market's resilience and potential are evident in the surge of investment opportunities, especially within the mid and Small-Cap sectors. Over the past five years, new listings have significantly increased the number of stocks, expanding the market capitalization and profit pool of these companies. Notably, the aggregate market cap of the Nifty Midcap 150 index has increased more than twofold to Rs 82.5 lakh crore from November 2020 to June 2024, with aggregate profits growing by approximately 142 per cent to Rs 2.1 lakh crore during the same period.
Mr. Swarup Anand Mohanty, Vice Chairman and CEO, Mirae Asset Investment Managers (India), Pvt. Ltd, said, “The significant growth in opportunities and capital markets is reflected in the large and midcap category flows. In FY19-20 the gross flows were Rs 17,834 crores which have risen to Rs 47,440 crs in FY23-24, growing 2.7 times in this period. The category’s market cap construct of minimum 35 per cent in both large and midcap has allowed absorption of such increased flows without impacting the overall portfolio liquidity significantly. This has given us the confidence to reconsider our subscription limits in the Scheme.”
Disclaimer: The article is for informational purposes only and not investment advice.