The largest large-and-mid cap equity fund in the Indian mutual fund industry, Mirae Asset Emerging Bluechip Fund (MEBF) is set to accept increased investments.
Mirae Asset Mutual Fund has decided to raise the investment limit to Rs 25,000 from the current limit of Rs 2,500. This limit is applicable per PAN for the monthly SIP ( systematic investment plan) in the scheme.
MEBF has been accepting money only through monthly SIP to the extent of Rs 2,500 per month per PAN. The scheme does not accept lump sum investments. Existing investments in the scheme and already registered SIPs do not get affected by this announcement. New SIPs can be registered up to the prescribed limit of Rs 25,000 per month going forward. This will be effective October 10.
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The scheme manages assets worth Rs 28,439 crore as of August 31, 2023, as per Value Research. The scheme is managed by Ankit Jain and Nilesh Surana.
Many investors and distributors have been asking for a hike in the SIP limit for the scheme. However, the fund house preferred to stick to graded inflows into the scheme. However, as the market structure changed over time, the fund house decided to review its earlier decision. The fund house has decided to increase the SIP limit due to factors such as growth in market cap and liquidity, increase in aggregate profit pool of mid cap stocks, availability of a more diverse universe with listing of new sets of businesses and midcaps being beneficiaries of consolidation due to various regulatory changes.
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“In addition to the above factors and with a view to provide meaningful participation to investors in the scheme without adversely impacting interests of existing unitholders we have decided to increase the subscription limit through SIP,” wrote the fund house in the communication sent out to unitholders.
Over the three years ended October 3, 2023, MEBF has given 24.41 percent returns compared to 24.76 percent returns given by the large & mid-cap fund category. The scheme topped the performance charts over the five-years timeframe with 18.87 percent returns. Large & mid-cap funds invest a minimum of 35 percent of the money in each of large-cap stocks and mid-cap stocks. As of August 31, large & mid-cap funds managed assets worth Rs 1.59 lakh crore as per monthly data released by the Association of Mutual Funds in India.
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