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?
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?
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.
Did you like our review, so why not share it on your Twitter, Facebook and Telegram?
- 10.4% UGRO Capital NCD – Oct-2024 – Issue Details and Review - October 10, 2024
- 10.1% Muthoot Fincorp NCD – Oct-2024 – Issue Details and Review - October 7, 2024
- 11% Edelweiss Financial Services NCD Oct-2024 Issue Details - October 6, 2024
Hi Suresh
Which is a best sensex index fund to invest ?
Nanmith, You can consider investing in low cost sensex index fund like HDFC index fund or ICICI Pru Index fund
Thanks brother as always
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.
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.
Thanks for your suggestions.
Please suggest any suitable small cap fund, can we go for index funds in mid and small cap categories.
Yes, you can go for index funds too. In active small cap funds, you can go for SBI smallcap fund or Quant smallcap funds