The scheme, which was launched on July 29, 2019, converted Rs 10,000 monthly SIP into Rs 12.75 lakh over the last five years at an XIRR of 30.72%.
An overall investment of Rs 1 lakh made in the fund since inception would have yielded Rs 3.56 lakh in five years at a CAGR of 28.65%. Over the last three years, the scheme has delivered a CAGR of 23.24% as against 28.41% for its benchmark (Nifty Midcap 150 (TRI)).
The scheme is benchmarked to the Nifty Midcap 150 Index (TRI). The fund’s assets under management have increased by 94% since inception and stood at Rs 17,225 crore as of July 2024.
Over the past five years, Mirae Asset Midcap Fund has seen both bullish and bearish market phases. In 2019, when the fund was launched, midcap valuations and levels had just softened after a rally. The sector itself was not very dynamic as there was a slowdown in exports, rural distress and fundamental changes in the market that did not favour midcaps. This is in contrast to 2023 where the midcap sector recorded multi-year highs and a strong earnings trajectory, according to the fund manager’s press release. The information ratio, which provides information on the level of consistency a portfolio can maintain to outperform the returns of the said benchmark, was recorded at -0.81 in June 2024. An information ratio above 0.5 indicates the fund manager’s ability to consistently deliver value beyond what can be attributed to market movements. The fund is suitable for investors who are looking to generate long-term capital appreciation/income and want investments predominantly in equity and equity-related securities of mid-cap companies. The capital invested in the fund will be at “very high” risk as per the fund’s risk meter. Based on the result of the June stress test, the fund will need seven days to liquidate 50% of its portfolio and four days to liquidate 25% of its portfolio.
Mirae Asset Midcap Fund is an open-ended equity scheme that invests predominantly in mid-cap stocks.
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