Question

• mutual funds and choose a fund in which you might like to invest.
• Identify this fund and explain why you are interested.
• Be sure to address such issues as past returns, expected future returns, the amount of fees and expenses, and why its investment objectives are attractive to you.

Answer 1

Mirae Asset India Equity is one of the schemes which has met investors’ expectations consistently. The scheme is a good investment option because it invests in companies after careful consideration to financial performance, management bandwidth, corporate governance and return ratios. Its fund managers, Neelesh Surana and Harshad Borawake, have refrained from investing in companies which are momentum or short-term in nature. A few factors are borne in mind before selecting investments in companies. Companies should generate high cashflows, have pricing power in their sectors and their balance sheet should be relatively lighter than peers. This focus has paid off. In the past three- and fiveyear periods, the scheme has given 17% and 19% returns, while its benchmark index, S&P BSE200 TRI, has given 15% and 14% returns in the same period, respectively.

Period	CAGR Return (%)	SIP CAGR RETURN (%)	EQUITY MULTICAP AVG CAGR RETURN(%)
1	-2.62	-1.50	-7.93
3	17.33	15.90	13.21
5	18.92	14.74	15.76

This scheme has high exposure to large-sized companies. Multi-cap funds are suited for investors in volatile markets.To deal with volatility, investors must consider investing in multi-cap funds. The fund has been one of the finest performers in its category beating its benchmark index and peers consistently both in bearish and bullish phases

multi-cap funds are diversified equity funds that invest in stocks of companies with different market capitalizations. The investments are done in varying proportions to meet the investment objective of the fund. In the long run, multi-cap funds are usually better wealth creators than other categories of funds as they can take advantage of investment opportunities across the market. Further, returns from the multi-cap category are comparable to mid-cap category over the long term which comes with lesser volatility. If you have an exposure to multi-cap fund, you will have exposure to companies of different sizes and you will be reasonably diversified with simplicity.