Introducing Mirae Asset’s New Small Cap Fund
Mirae Asset Investment Managers (India) has officially launched the Mirae Asset Small Cap Fund, a fresh open-ended equity scheme primarily dedicated to small-cap stock investments. This fund endeavors to seize growth opportunities within India’s burgeoning small-cap sector through a meticulously research-driven investment strategy.
Fund Overview
The Mirae Asset Small Cap Fund will benchmark its performance against the Nifty Small Cap 250 Total Return Index (TRI). Senior Fund Manager Varun Goel will oversee the fund’s management, emphasizing long-term wealth generation by investing in high-potential small-cap companies boasting robust fundamentals, effective corporate governance, and sustainable earnings growth.
Subscription Details
The New Fund Offer (NFO) is available for subscription until January 24, 2025, with the fund reopening for continuous sale and repurchase starting February 3, 2025.
- Minimum Investment: ₹5,000 during the NFO
- Subsequent investments: In multiples of ₹1
Investment Strategy
The Mirae Asset Small Cap Fund will allocate a minimum of 65% of its assets to small-cap stocks, with up to 35% invested in mid-cap and large-cap stocks. The fund will concentrate on companies demonstrating:
- Sustainable earnings growth
- High capital efficiency
- Strong corporate governance
- Minimal or negligible leverage
Target Audience
This fund is tailored for investors who embrace a higher risk profile, including:
- Younger, dynamic investors looking for high-growth avenues
- Experienced investors seeking to enhance their portfolio returns
- Individuals utilizing Systematic Investment Plans (SIPs) to mitigate market fluctuations
Outlook
Mirae Asset Mutual Fund is poised to leverage its international expertise and research capabilities to identify promising opportunities in the ever-evolving small-cap landscape. The fund aims to spotlight undervalued, growth-oriented stocks, striving to enhance shareholder value over the medium to long term. Potential investors are encouraged to assess their financial aspirations, risk tolerance, and investment time frames before committing, as the small-cap segment, while capable of delivering substantial returns, comes with heightened volatility and associated risks.
