Dalal Street Investment Journal - July 09, 2019

78 DALAL STREET INVESTMENT JOURNAL I JULY 8 - 21, 2019 DSIJ. in^

MF page - 12

MF Select

Mirae Asset Emerging Bluechip Fund - Direct Plan (Growth)

Equity: Large & Mid Cap

1% if redeemed within 12 months from date of

allotment.

14.01%

Neelesh Surana and Ankit Jain

Scheme Category

Exit Load

`7271.16Cr 57.45 0.80%

Nifty Large Midcap 250

(TRI)

AUM (Cr): 31 May, 2019 NAV () 28 June, 2019

Expense Ratio (%)

31 May, 2019

Benchmark

*Expected Return In Next One Year

Fund Manager

Reason for recommendation

The current situation of the equity market is making investing in

stocks difficult. There is no clear trend that is emerging. You may

find one day the broader market is showing sign of strengths and

on another day, the frontline indices may be performing better.

Hence, the right strategy to invest currently is to invest in large

and mid-cap funds. This category of fund is required to invest

atleast 35 per cent in large-cap stocks and a similar percentage in

mid-cap stocks, hence giving you exposure to both broader as

well as frontline equity stocks. Large-cap stocks give you stability

while mid-cap stocks help you generate alpha in your returns.

Mirae Asset Emerging Bluechip is one of the best funds in this

category. Currently, the fund holds 53 per cent of its assets in

large-cap stocks, around 35 per cent in mid-cap stocks and 11

per cent in small-cap stocks. The best part of this fund is that

historically it has been able to give better returns when the

market is in a downturn. For example, in the last year (2018) it

fell less than the category when the overall market sentiment was

negative, while in the year 2017, it outperformed both category

and its benchmark. Going ahead, the fund is well-poised to take

benefit of any rise in the market due to the fact that almost half

-10.00%

-8.00%

-6.00%

-4.00%

-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

Jul-18Aug-18Sep-18Oct-18Nov-18Dec-18Jan-19Feb-19Mar-19Apr-19May-19Jun-19

of its assets are allocated to mid and small-cap stocks, which

rises more when the market rises. Nonetheless, if for any reason

the market fails to perform, the fund will fall less compared to

its benchmark. This is because the fund is overweight on

defensive sectors. One-fifth of the fund is invested in defensive

sectors. Therefore, the fund is suitable for investors with a

moderate risk profile and for investors who are investing with a

longer investment horizon.

Monthly Returns

TOP 10 Holdings

COMPANY NAME % TO NET ASSETS

HDFC Bank 5.99

ICICI Bank 5.85

Axis Bank 4.10

Tata Global Beverages 3.21

Bharat Financial Inclusion 3.13

Reliance Industries 3.04

Ta t a S t e e l 2.94

State Bank of India 2.88

Vo l t a s 2.85

Infosys 2.82