Fund of Fortnight

Reason for recommendation

Mirae Asset Large Cap Fund - Direct Plan (Growth)

After a gap of almost 7 months, frontline equity indices have touched new highs. However, nervousness is clearly visible among the investors as indices are unable to sustain their peak levels. One of the reasons for such nervousness among investors is the upcoming general election and possible outcomes that is stopping them from taking any aggressive position. In these conditions when the needle can move either side, a large-cap dedicated fund with a mix of mid-cap makes a perfect sense. This is because the large-cap stocks will provide the required stability in the performance and at the same time mid-cap will help you create alpha.



Mirae Asset India equity fund, which was earlier classified as a multi-cap fund, and is now a large-cap fund is perfect for investors who do not want to take the risk but also are not willing to forgo returns. The change in category of the fund will not make much of a difference as the fund has always weightage of more than 75 per cent in large-cap stocks. So the exceptional return was generated by the fund due to better stock selection. The latest portfolio also suggests that the fund is holding 87% of its portfolio in large-cap. Therefore, other than name and category nothing will change for the fund.



In terms of portfolio allocation, the fund is sticking to its benchmark and has the highest exposure to financials. Going ahead, the presence of India's largest corporate and retail banks along with the best IT names gives us confidence that the fund would do well, going ahead.