From October 25, Mirae Asset MF will stop accepting new lumpsum applications in its flagship scheme, Mirae Asset Emerging Bluechip Fund in order to consolidate bulky inflows.
Neelesh Surana, CIO-Equity says, “Mirae Asset Emerging Bluechip Fund has emerged as one of the top five funds in this category. We have witnessed heavy inflows in this fund over the last two years. So, we decided to consolidate bulky inflows because this product has higher longevity. Over the last few months due to large inflows, we were getting disproportionate market share which can be against the interest of the existing investors.”
In its addendum dated October 21, the fund house said, “Fresh lumpsum subscription/switch-in to all the Plans & Options of Mirae Asset Emerging Bluechip Fund (MAEBF) through any mode including Stock Exchange platform has been temporarily suspended with effect from October 25, 2016.”
However, fresh registrations through SIPs and STPs (weekly and monthly option) are allowed with a maximum cap of Rs.25, 000 per transaction.
Value research data shows that Mirae Asset Emerging Bluechip Fund has delivered CAGR of 24% since inception. It has given CAGR of 45% and 29% in 3 and 5 year respectively.
The fund currently manages AUM of Rs.2462 crore as on September 30, 2016.
Earlier, DSP Blackrock had restricted investments in the DSP Blackrock Micro Cap Fund to Rs.1 lakh in August whereas SBI MF stopped taking lump sum and SIP investments from new investors last year in SBI Small and Midcap Fund.
“Mid and small cap stocks are volatile. Sometimes, the fund manager ends up deploying cash in money market because stocks tend to be overvalued. Also, mid and small cap stocks have a liquidity issue. Hence, closing the scheme from high value subscription is a good move to minimize risk,” a senior employee of a national distribution firm had earlier told Cafemutual.
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