Mirae Asset Large Cap Fund Direct Growth is a large-cap mutual fund scheme managed by Mirae Asset Mutual Fund, which was established in January 2013.
The fund is benchmarked against the S&P BSE 100 India TRI and holds the least risk and expense ratio among the categories.
Mirae Asset Large Cap Fund has completed 11 years from inception and currently holds an AUM of Rs. 37969.17 crore. The direct-growth plan has yielded 16.79% CAGR per year since its inception.
If you had invested 1 lakh in 2013, your fund would have grown up to 4.53 lakhs in 2024.
The minimum lump sum to start investments in this fund is Rs. 5,000 and the minimum SIP (systematic investment plan) is Rs. 500 per month.
Mirae Asset Large Cap funds comprise 4 plans,
- Direct Growth Plan (We speak about this plan in this article)
- Regular Growth
- Direct – IDCW (Dividend Plan)
- Regular – IDCW (Dividend Plan)
As a reader, you will find all the details about this fund that you need to know before investing.
Mirae Asset Large Cap Fund Direct Growth NAV:
The current NAV of Mirae Asset Large Cap Fund direct growth is 105.08 (as of February 14, 2024).
The NAV of other plans of the same blue chip funds is
- Regular Growth – 94.53
- IDCW – Regular Plan – 28.54
- IDCW – Direct Plan – 64.72
During the NFO period, all 4 plans had a NAV of Rs.10. By the above distinction, you could find the Direct-Growth plan helps grow your funds at higher rates than other plans.
Regular plans are best if you need a professional to manage your fund.
Mirae Asset Large Cap Fund Direct Growth Performance:
Mirae Asset Large Cap Mutual Funds is an open-ended scheme that invests in large-cap companies (Top 100 companies of Indian share market per market capital).
This fund’s objective was to outperform the benchmark (S&P BSE 100 TRI) with comparatively low risk.
The fund has performed at a CAGR of 16.64% per annum since inception vs. 18.34% to S&P BSE 100 (benchmark). The category average has performed at a CAGR of 15.61%.
Miare Asset Large Cap Fund has underperformed its category average in 2 and 5 years of performance.
The fund has grown 71.18% higher than the Nifty 50 index since its inception (January 2013).
A short comparison of the fund’s performance with the benchmark and category average follows.
The fund has underperformed in 2 and 5 years returns with a CAGR of 12.84% and 16.10%, respectively.
In the last 2 years of performance, the Mirae Asset Large Cap Direct Growth Fund has performed 2.8% lower than the benchmark and 4.24% lower than the category average.
In the last 5 years of performance, the Mirae Asset Large Cap Direct Growth Fund has performed 0.64% lower than the benchmark and 1.13% lower than the category average.
The same fund has underperformed than benchmark and outperformed than category average for the last 1 year of performance.
Fundamental Analysis Ratios:
- P/B – 3.74
- P/E – 25.80
Mirae Asset Large Cap Fund Portfolio:
The portfolio of this scheme includes equity (96.98%) and Cash (3.02%).
Equity Holdings (96.98% of total portfolio):
The fund holds 62 company stocks and is subdivided into three types of classes (as per market capital),
- Large Cap Companies – 67.14%
- Mid Cap Companies – 7.38%
- Small Cap Companies – 2.99%
- Others – 19.47%
Fund Portfolio across Industries:
- Financial – 34.2%
- Technology – 13.4%
- Services – 6.0%
- Energy – 10.0%
- Construction – 6.9%
- Consumer Staples – 5.9%
- Others – 23.6%
Top 20 Holdings:
- ICICI Bank Ltd – 8.75%
- HDFC Bank Ltd – 8.72%
- Reliance Industries Ltd – 8.08%
- Infosys Ltd – 7.78%
- Axis Bank Ltd – 4.90%
- Bharti Airtel Ltd – 4.23%
- State Bank of India – 3.67%
- Kotak Mahindra Bank Ltd – 3.66%
- Larsen & Toubro Ltd – 3.55%
- HCL Technologies Ltd – 2.21%
- ITC Ltd – 2.21%
- Hindustan Unilever Ltd – 2.20%
- Maruti Suzuki India Ltd – 2.14%
- Sun Pharmaceuticals Industries Ltd – 2.07%
- Tata Consultancy Services Ltd – 2.04%
- NTPC Ltd – 1.59%
- FSN E-Commerce Ventures Ltd – 1.43%
- Ambuja Cements Ltd – 1.40%
- One97 Communications Ltd – 1.36%
- SBI Cards and Payment Services Ltd Ordinary Shares – 1.17%
The Top 5 securities of this scheme cover 38.23% of the overall portfolio, and the Top 20 securities cover 73.16%
Mirae Asset Large Cap Fund Direct Growth Risk Ratios:
Before investing in a mutual fund, it’s essential to analyze its risk ratio.
Standard deviation, Alpha, Beta, and Sharpe ratio are the parameters we usually calculate to predict the volatility and risk on returns.
Here are the details of the 3-year risk factors of the fund vs. category average.
- Standard Deviation – 13.69 vs. 13.92
- Alpha – (-) 1.43 vs (-) 0.26
- Beta – 0.94 vs 0.94
- Sharpe Ratio – 0.65 vs 0.75
The fund has low risk compared to the category average and benchmark.
Mirae Asset Large Cap Fund Expense Ratio:
The expense ratio plays an important role and impacts the performance of any mutual fund scheme.
The expense ratio or TER of Mirae Asset Large Cap Fund Direct Growth is 0.54%.
The TER of the category average is 1%. This is an important reason why the fund has underperformed both the category average and benchmarks in the long term (5+ years).
Here is the expense ratio detail of the same fund with different plans,
- Regular – Growth – 1.53%
- Regular – IDCW – 1.53%
- Direct – IDCW – 0.54%
So, the best plan to choose from this scheme is direct growth. The fund has zero exit loads when redeemed post 1 year and 1% if redeemed within 365 days.
Mirae Asset Large Cap Fund Managers:
Every mutual fund investor must know about the fund manager and their history.
Two managers manage this fund. Gaurav Misra and Gaurav Khandelwal.
Gaurav Misra has been managing this fund since October 2021. He has about 24 years of experience in investment management and equity research functions. Before joining Mirae AMC, he worked as a Senior Portfolio Manager with ASK Investment Managers Limited.
Apart from this fund, he manages 1 more scheme at Mirae AMC.
Gaurav Khandelwal has been managing this fund since October 2021. Before joining Mirae Asset Investment Managers (India) he worked with Edelweiss Securities Ltd., Ambit Capital Private Limited, Emkay Global Private Limited, CRISIL Limited, and ICICI Bank.
Conclusion:
- This fund is one of India’s top picks in large-cap mutual funds.
- Maintain low risk compared to the category average.
- Portfolios are well diversified within 62 equity securities and a few cash components.
- Mirae Asset Large Cap Fund is designed for investors with long-term goals like retirement planning, a dream home, a child’s higher education, and marriage.
- Performance since inception are low compared to the benchmark and category average.
- The expense ratio of this fund is lower than the category average,
- The fund manager’s track record is awesome.