First Multi Cap Fund from Mirae Asset MF: Minimum amount, last date of NFO, who should invest – All details 

Mirae Asset Mutual Fund has launched its first Multi Cap Fund. Mirae Asset Multicap Fund is an open-ended equity scheme investing across large-cap, mid-cap and small-cap stocks.

The NFO for the fund opened for subscription on July 28, 2023 and closes on August 11, 2023. The fund will be managed by Ankit Jain and track NIFTY 500 Multicap 50:25:25 TRI.

Investors can invest in this fund by making a minimum initial investment of Rs 5,000 and thereafter in multiples of Re 1. 

Who should invest?

According to a statement by Mirae Asset Mutual Fund, this fund will serve as one of the investment options for investors with a 5-year plus horizon, who are looking to diversify their equity portfolio across market cap, or limit the number of schemes they are invested in. This fund will give exposure across the market cap spectrum. 

Fund Allocation

The Mirae Asset Multicap Fund will have a minimum 25% and maximum 50% allocation to each market cap category, resulting in even participation across segments. 

The fund house said that the large-cap investments will be in the Top 100 stocks by market capitalization. In this category, businesses are mature with dominant players, and therefore offering relatively lower downside risk and volatility in comparison to mid and small-cap companies.

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The mid-cap allocation will be in the next 150 (101st to 250th) stocks by market capitalization, largely emerging businesses with reasonable valuations. The small-cap investment will be in 251st and beyond stocks by market capitalization. These companies are young and scalable businesses with unlocked potential. While these stocks may carry a higher downside risk, they also have the potential to generate a higher alpha.

The fund will use the last 25% of its assets for tactical investments to leverage opportunities through dynamic allocation across market capitalizations.

According to the statement, Mirae Asset Multicap Fund being capitalisation and sector agnostic offers investors the experience of staying invested across stocks and sectors that are experiencing benefits of excellence as well as technological changes being ushered into the economy. 

It will also provide an opportunity for those investors who do not want their portfolio to be widely spread but enjoy the best of all sectors.

“Right from the outset, it has been our endeavour to offer our investors various options that enable to optimise their returns in line with their investment strategies. Mirae Asset Multicap Fund too follows a similar principle, by enabling investors to expand their investments across the market spectrum without necessitating the addition of multiple schemes. The Multicap fund invests in large-cap, mid-cap and small-cap funds, leading to diversification of opportunities and risk, making it a dynamic option balancing risk and reward,” said Ankit Jain.

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“Despite the turbulence in the global economic environment, the Indian economy continues to charter an impressive growth route and Mirae Asset Multicap Fund aims to capture and offer the exciting positive developments across sectors to its investors,” he added.

Investment options

The Mirae Asset Multicap Fund will be available to investors in both, Regular Plan and Direct Plan. Post NFO, the Minimum Additional Purchase Amount will be Rs. 1000 and thereafter in multiples of Re 1.

Disclaimer: The above content is for informational purposes only, based on a press release by Mirae Asset Mutual Fund. Mutual Fund investments are subject to market risks. Please consult your financial advisor before investing.