Mirae Asset Flexi Cap Fund NFO – Should you invest or Avoid?

Mirae Asset Flexi Cap Fund opens for subscription on 3rd February, 2023. It’s an open-ended fund that invests across market capitalization of stocks i.e., large caps, mid-caps, and small caps. Currently, we already have several flexicap mutual fund schemes that generated up to 17% annualised returns in the last 5 years. Should you invest in the Mirae Asset Flexi Cap NFO? What are the risk factors an investor should consider before investing in such Flexicap funds?

Also Read: Best Largecap Mutual Funds for 2023

Mirae Asset Flexi Cap Fund – NFO Issue Details

Here are the NFO issue details.

Scheme Opens 03-Feb-23
Scheme Closes 17-Feb-23
Scheme reopens for continuous purchase/sale Within 5 working days
Minimum Lumpsum Rs 5,000
Minimum SIP Rs 500 for 6 months
NAV of the fund Rs 10 during NFO period
Entry Load Nil
Exit Load 1) In case of SWP
a) 15% of the units allotted (including Switch-in/STP – in) on or before
completion of 365 days : Nil.
b) Excess of such limits in 365 days : 1%
II. Other Redemptions:
a) If redeemed within 1 year: 1%
b) If redeemed after 1 year : NIL
Risk Very High Risk
Benchmark NIFTY 500 TRI
Fund Manager Mr. Vrijesh Kasera
Max TER 2.25%

Mirae Asset Flexi Cap Fund SID

What is the investment objective of Mirae Asset Flexi Cap Fund NFO?

The investment objective of the scheme is to provide long-term capital appreciation from a portfolio investing predominantly in Indian equity and equity related instruments across market capitalization.

However, there can be no assurance or guarantee that the investment objective of the scheme would be achieved.

What is the allocation pattern in this fund?

This fund investment pattern is as follows:

Type of instruments Min % Max % Risk Profile
Equity and Equity related instruments including equity linked derivatives 65% 100% High
Debt securities (including securitized debt & debt derivatives) and money market instruments 0% 35% Low to Medium
Units issued by REITs and InvITs 0% 10% Medium to High

How Mirae Asset Flexicap Fund plans to identify bottomup stories?

How Mirae Asset Flexicap Fund plans to identify bottomup stories

Why to invest in Mirae Asset Flexi Cap Fund NFO?

Here are a few reasons to invest in this fund.

1) Flexi cap mutual funds would invest across market caps i.e., in large cap, mid cap and small cap which would help investors for diversification.

2) While investment in large cap would provide stable returns, investment in Midcap and small cap funds would provide opportunity to invest in multibagger stocks that can generate high returns.

3) As indicated in our previous articles, historically we have observed that market cap outperformance tends to occur in phases. E.g., Large cap performed well in 2018-2020. Midcap and small cap stocks have outstanding performance in 2020 and 2021. Hence, flexicap funds have high potential to perform in all market cycles.

4) Flexicap segment has historically given high rolling returns.

Major risk factors you should consider before investing in such funds

One should consider some of these risk factors / negative factors before investing.

1) This flexicap scheme would invest in small cap and mid cap stocks which are high risk.

2) This fund would invest in equity derivatives which are high risk.

3) This scheme would have exposure to corporate debt instruments which are turned to be riskier in the last few years.

4) Investors should read scheme information document (SID) for complete risk factors of the scheme.

How is the performance of existing Flexi Cap funds in India?

Below is the list of top flexicap mutual funds and their performance in the last 3 to 10 years.

Scheme Name  3 Yrs 5 Yrs 10 Yrs
Quant Flexi Cap Fund 34.0% 17.4% 18.8%
Parag Parikh Flexi Cap Fund 22.2% 15.8%
PGIM India Flexi Cap Fund 21.6% 14.1%
Canara Robeco Flexi Cap Fund 16.0% 12.6% 13.9%
Axis Flexi Cap Fund 11.3% 12.3%
JM Flexicap Fund 16.1% 11.9% 15.9%
Union Flexi Cap Fund 16.6% 11.7% 12.3%
UTI Flexi Cap Fund 13.3% 11.3% 14.0%
HDFC Flexi Cap Fund 19.6% 11.3% 14.9%
IDBI Flexi Cap Fund 15.4% 10.7%
Edelweiss Flexi Cap Fund 15.9% 10.5%
Franklin India Flexi Cap Fund 18.0% 10.5% 15.2%
DSP Flexi Cap Fund 13.2% 10.2% 14.2%
Kotak Flexicap Fund 12.5% 10.2% 16.0%
SBI Flexicap Fund 13.3% 9.5% 15.7%
Aditya Birla Sun Life Flexi Cap Fund 12.9% 9.1% 15.9%
HSBC Flexi Cap Fund 13.3% 7.2% 13.7%
IDFC Flexi Cap Fund 10.7% 7.0% 13.7%
LIC MF Flexi Cap Fund 7.6% 5.9% 9.4%
Taurus Flexi Cap Fund 8.9% 4.0% 8.9%
Motilal Oswal Flexi Cap Fund 6.1% 3.9%

How is the performance of the fund manager in other schemes managed by them?

Performance of fund manager

Also Read: 5 Mutual Funds with Highest SIP Returns in last 20 years

Should you invest in Mirae Asset Flexi Cap Fund NFO?

Mirae Asset Flexi Cap Fund invests in various market capitalization i.e., in large cap, mid cap and small cap stocks in India. While large cap component provides stable returns, the Midcap and smallcap segment has the potential to generate high returns. Such funds can act like diversification of portfolio to investors.

Its exposure to midcap and smallcap segment is high risk. There are couple of flexicap mutual funds that generated just 4% annualised returns in last 5 years, hence there is no guarantee that this new fund offer would deliver high returns.

High risk investors who want to try and test with new funds can invest in this scheme for 5+ years. Otherwise, one can invest in existing top performing flexicap mutual funds that have already proven in various market cycles.

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Suresh KP


  1. Dear Suresh Sir, Need your advice.
    Which of the below funds are suitable for aggressive investment with medium to long term investment horizon.

    1) PGIM Mid cap or Quant Mid Cap
    2) Motilal oswal mid cap 150 index 50 or UTI nifty 50 index funds
    3) Motilal oswal Nasdaq 100 or Motilal oswal S&P 500 for international exposure.

    1. Hello Savee, If you are aggressive investors, go for midcap/smallcap/international funds. I am personally investing in Quant midcap fund, Motilal Oswal Nasdaq 100 fund. Even Motilal oswal midcap fund is also good.

      1. Thanks for your suggestions.
        Please suggest any suitable small cap fund, can we go for index funds in mid and small cap categories.

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