Mirae Asset Emerging Bluechip Fund: Performance Review

Published: December 12, 2023 at 6:00 am

This edition of the fund performance report looks at Mirae Asset Emerging Bluechip Fund. In Oct 2016, this fund stopped lump sum investments after its AUM swelled past 11,000 Crores. Investments were possible only via SIPs or STPs up to Rs. 2500 monthly.  In early October 2023, the fund house increased the SIP limit to Rs. 25,000.

It started out as a mid cap fund but had to increase large cap stock allocation due to an AUM increase. After the SEB MF categorization rules kicked in, it became a large and mid cap fund. It has always been a mystery to me (and possibly others) why this fund has investment restrictions and not other funds in its category.

We use our monthly equity mutual fund performance screener to review the performance of Mirae Asset Emerging Bluechip Fund over every possible 3,4, and 5-year period since Jan 2013 (more data available in the screener sheet).

Disclaimer: Fund performance reports present return and risk analysis of a fund with representative benchmarks and not investment recommendations. It must be expressly understood that the data below reflect only past performance and is in no way an indication of future performance. Our investment recommendations are: Handpicked List of Mutual Funds (PlumbLine).

In this report, we shall abstain from any buy/sell recommendations. It is up to the reader to decide. Both the existing investor in the evaluated fund and the prospective investor (especially the prospective investor) must understand the past performance disclaimer mentioned above and should not expect the fund’s past performance (whether good or bad) to repeat in future. As always, an index fund is a simpler, peaceful option.

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This is the market cap allocation history of Mirae Asset Emerging Bluechip from July 2017.

Market cap allocation history of Mirae Asset Emerging Bluechip
Market cap allocation history of Mirae Asset Emerging Bluechip

Notice the increase in large cap allocation in early 2018. When we evaluate past returns, this must be kept in mind.

We find out how consistently the Mirae Asset Emerging Bluechip Fund has performed compared to the Nifty 200 index and Nify Largemidcap 250 TRI.

1 Rolling return outperformance consistency: the fund returns are compared with category benchmark returns over every possible  3Y,4Y, and 5Y period from 1st Jan 2013. The higher the outperformance consistency, the better. Suppose 876 fund returns were compared with 876 benchmark returns, and the fund has beaten the benchmark 675 times. The consistency score will be 675/876 ~ 0.77 or 77%. A score of 1 means 100%.

BenchmarkN200TRINifty Largemidcap 250 TRI
No of rolling return entries Index (3 Years)19131925
No of rolling return entries Fund (3 years)19131925
No of times the fund has outperformed the index (3 years)19121748
rolling return outperformance Consistency Score (3 years)0.9994770.908052
No of rolling return entries Index (4 Years)16741677
No of rolling return entries Fund (4 years)16741677
No of times the fund has outperformed the index (4 years)16741677
rolling return outperformance Consistency Score (4 years)11
No of rolling return entries Index (5 Years)14361436
No of rolling return entries Fund (5 years)14361436
No of times the fund has outperformed the index (5 years)14361436
rolling return outperformance Consistency Score (5 years)11

That is excellent performance consistency.

2 Upside performance consistency over every possible 1Y,2Y,3Y,4Y, 5Y: Higher the better. A score of 70% means, 7 out of 10 times, the Fund performed better than the category benchmark when the benchmark increased. This is a measure of reward. It is computed from rolling upside capture data (see link below).

BenchmarkN200TRINifty Largemidcap 250 TRI
upside performance consistency (3 years)0.9157890.842105
upside performance consistency (4 years)10.915663
upside performance consistency (5 years)11

Most funds that beat the index consistently do not have consistent upside. See: Strange, but true! How mutual funds beat the index! Mirae Asset Emerging Bluechip Fund is an exception.

3 Downside performance consistency over every possible 1Y, 2Y, 3Y,4Y, and 5Y. The higher, the better. A score of 60% means 6 out of 10 times, the Fund performed better than the category benchmark when the benchmark was moving down. This is a measure of risk protection. It is computed from rolling downside capture data. Read more: An introduction to Downside and Upside Capture Ratios.

BenchmarkN200TRINifty Largemidcap 250 TRI
downside protection consistency (3 years)0.9894740.873684
downside protection consistency (4 years)11
downside protection consistency (5 years)11

Mirae Asset Emerging Bluechip is a rare fund that excels in all three metrics.  However, no one can predict when the tide may turn. Existing and prospective investors must remember this before increasing their SIP amounts or starting new SIPs.