Oct 17, 2011, 02.51 PM IST | Source: Moneycontrol.com

Mirae Asset India Opportunities Fund: An analysis

Mirae Asset India Opportunities Fund is a fund meant for investors who want an exposure to a predominantly large cap portfolio, but at the same time want to generate a higher return than a slightly broader universe, says Arnav Pandya.

Mirae Asset India Opportunities Fund: An analysis

Mirae Asset India Opportunities Fund is a fund meant for investors who want an exposure to a predominantly large cap portfolio, but at the same time want to generate a higher return than a slightly broader universe, says Arnav Pandya.

Mirae Asset India Opportunities Fund

Nature: Equity oriented open ended

Inception: March 2008

Assets under Management: Rs 185 crore at end of September 2011.

Fund Manager Gopal Agrawal and Neelesh Surana.

Analysis:

  • The fund had the highest exposure to banks at the end of March 2010 at 15% of the portfolio allocated to this area followed by software, pharmaceuticals, power and petroleum products. In terms of individual stocks it was Reliance Industries at the top of the list followed by ICICI Bank, SBI, TCS and HDFC Bank. The fund concentrates on large cap stocks though there is a small exposure to mid caps in its portfolio making it broad based. At this point of time the fund was comfortably outperforming its benchmark the BSE 200 over a one year time period and since its inception.
  • At the end of August 2010 there was a further concentration of the portfolio into banks and this sector now had 20% of the total assets under the fund. This was followed by software, pharmaceuticals and power. There was a shuffle in the top holdings of the fund as Infosys was the top exposure followed by HDFC Bank, ICICI Bank, Hindalco and Reliance Industries. The fund continued its massive outperformance over the last year as well as since its inception.
  • Six months at the end of February 2011 later banks continued to be the top sector in the fund and while software and pharma maintained their standing there was a move up for auto and auto ancillaries as these climbed up on the sector exposure list.  There was a small shift in the top holdings as HDFC Bank climbed to the top spot displacing Infosys but the other companies in the top 5 list namely ICICI Bank, Hindalco and Reliance Industries remained in their respective positions. The fund continued to deliver for its investors and was an outperformer over the one year and the period since inception.
  • There has been a shake up in the portfolio over the last six months as several sectors have witnessed a rise in the exposure. On one side banks continued to be the top sector but this was followed by consumer non durables and then by software, petroleum, finance and auto. Infosys was at the top individual holding followed by Reliance industries, ICICI bank, HDFC Bank and ITC. The portfolio turnover ratio stood at 1.53 times. The fund manager has consistently ensured that the exposure of the top holdings do not cross the 6% mark. The fund has continued its outperformance over the benchmark over the one year, three years as well as since inception.
  • This is a fund meant for investors who want an exposure to a predominantly large cap portfolio, but at the same time want to generate a higher return than a slightly broader universe. 
Disclaimer: Views expressed in this article are entirely personal.
arnavpandya@hotmail.com.

For full details of the fund including NAV performance, portfolio, and peer comparison click here.

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