Mirae Asset Midcap Fund: Stay away from this asset gathering exercise

MIrae Asset Midcap Fund

Published: July 13, 2019 at 10:10 am

Last Updated on

Mirae Asset Midcap Fund is the latest NFO from Mirae Mutual Fund. The fund house has been busy shuffling its funds. First, it made Mirae India Equity fund into Mirae large Cap Fund in March (effective 1st May 2019). Then it announced a multicap NFO Mirae Asset Focused Fund in April 2019 and now a Midcap fund.

From AMC’s point of view, this is an asset-gathering exercise. They are in the good books of the distributor community (they need to be in the absence of a bank to drive sales) and each time there is an NFO, they will press all the right buttons (including the media) to drive sales.

As an investor, this kind of gymnastics ought to be plain repulsive. The NFO presentation of Mirae Asset Midcap Fund makes a song and dance about how it is the right time to invest in midcaps (what else would it say anyway!). If that is the case, why not open lump sum investments in Mirae Asset  Emerging Bluechip fund?

The AMC still claims emerging bluechip is “primarily a midcap fund”. Lump-sum investments were suspended in Oct 2016 when AUM was only ~ 3100 Crores and not opened yet! It has happily driven sales in this fund via SIPs and STPs (current AUM ~ 7700 Cr)

There is nothing unique about Mirae Asset Midcap Fund. It says the usual stuff about “unearthing opportunities”, “invest in future large caps”, blah blah. Most people who are reading this will have zero need for a midcap fund in their portfolio.

Even if they do, they can happily invest in any of the midcap funds with a fantastic track record. See for example DSP Midcap Fund Review: A Top Three Performer! You can screen for such funds in any category with the Equity Mutual Fund Performance Screener

Hate ads but would like to support the site? Subscribe to our ad-free newsletter and get beautifully formatted full articles delivered to your inbox!

If the investor has a deluded love for Mirae Mutual Fund, they can start a SIP in Mirae Emerging Bluechip. It has all the midcap one needs, is managed by a good fund manager: Neelesh Surana since May 2010 (at the time of writing, things change quick and smooth in this space).

There is no flaming need to invest in Mirae Asset Midcap fund unless you are tricked into believing getting units at a NAV of Rs. 10 per unit will make a big difference to your life.

Suggestions:

1: Do not get married to Fund Houses or their products

2: Unfollow all AMC folk on social media. You will sleep a lot better.

Do share if you found this useful
Hate ads but would like to support the site? Subscribe to our ad-free newsletter and get beautifully formatted full articles delivered to your inbox!

About the Author

M Pattabiraman author of freefincal.comM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Linkedin
Pattabiraman has co-authored two print-books, You can be rich too with goal-based investing (CNBC TV18) and Gamechanger and seven other free e-books on various topics of money management.  He is a patron and co-founder of “Fee-only India” an organisation to promote unbiased, commission-free investment advice.
He conducts free money management sessions for corporates and associations on the basis of money management. Previous engagements include World Bank, RBI, BHEL, Asian Paints, TamilNadu Investors Association etc. For speaking engagements write to pattu [at] freefincal [dot] com

About freefincal & Content Policy

Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on developments in mutual funds, stocks, investing, retirement and personal finance. We do so without conflict of interest and bias. We operate in a non-profit manner. All revenue is used only for expenses and for the future growth of the site.
Freefincal serves more than one million readers a year (2.5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any kind of paid articles, promotions or PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)

Connect with us on social media

Our Publications


You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingMy first book is meant to help you ask the right questions, seek the right answers and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.  It is also available in Kindle format.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You WantGamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantMy second book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at low cost! Get it or gift it to a young earner

The ultimate guide to travel by Pranav Surya

Travel-Training-Kit-Cover This is a deep dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step.  Get the pdf for ₹199 (instant download)  

Free Apps for your Android Phone

All calculators from our book, “You can be Rich Too” are now available on Google Play!
Install Financial Freedom App! (Google Play Store)
Install Freefincal Retirement Planner App! (Google Play Store)
Find out if you have enough to say "FU" to your employer (Google Play Store)

Comment Policy

Your thoughts are the driving force behind our work. We welcome criticism and differing opinions.Please do not include hyperlinks or email ids in the comment body. Such comments will be moderated and I reserve the right to delete the entire comment or remove the links before approving them.

7 Comments

  1. Very true. I’ve been waiting for lump sum investment in emerging blue chip fund. As you mentioned it’s pure marketing to increase AUM. I’m losing confidence on MIRAE.

  2. And then how can you forget Mirae asset emerging bluechip was a Focused (Multicap) fund which is now change to large & midcap and a new focused fund is launched. Do u really think it’s good to invest in their focused fund??

  3. calling ‘a spade’ to a spade needs clarity of ideas and courage! i like your first suggestion timely for me: 1: Do not get married to Fund Houses or their products, and for second, i don’t still indulge! yes, i have investment in its emerging bluechip and could not invest more due to restriction now.

Leave a Reply

Your email address will not be published. Required fields are marked *