Mirae Asset Mutual Fund has made a significant move by increasing the Systematic Investment Plan (SIP) limit for its popular scheme, the Mirae Asset Emerging Bluechip Fund. From October 10, the SIPs limit will be increased to ₹25,000, which was earlier ₹2500. Mirae Asset Mutual Fund has informed the investors about the news through a notice.
For many investors, this development is indeed a big deal. The Mirae Asset Emerging Bluechip Fund has long been the darling of investors. “The previous SIP limit of ₹2,500 had left some feeling constrained. Now, they have the opportunity to invest up to ₹25,000 through SIPs, providing them with more flexibility and potential for higher returns,” said Amit Gupta, Managing Director at SAG Infotech.
Mirae Asset Emerging Bluechip Fund (MEBF)- Direct Plan returns
MEBF has given 19.41% returns in one year, 25.24% in three years, and 20.33% in five years as per data available on Value Research.
One year -19.53%
Three years-25.24%
Five years- 20.33%
Mirae Asset Emerging Bluechip Fund’s performance
When assessing the fund’s performance, it’s clear that Mirae Asset Emerging Bluechip Fund boasts an impressive track record. According to Value Research, it ranks as the top performer in the large & mid-cap category over five, seven, and ten-year periods.
According to Amit Gupta, the 10-year annual returns data of this scheme is quite impressive. This fund has done really well. “It has beaten its own set standards in eight of the last ten years and has done better than most others in its category in nine out of those ten years,” added Gupta.
Why were there limits on investments?
Mirae Asset Mutual Fund decided to limit SIP investments on November 6, 2020. As per Gupta, the scheme imposed SIP limits as a response to its growing popularity. This step followed an earlier decision in October 2016 when the fund stopped accepting lump sum investments due to its assets crossing the ₹11,000 crore mark.
Should investors increase their SIP?
On investors who should opt for it, Gupta said, “if you have a high-risk appetite and a long investment horizon, it may be a suitable choice.”
After recategorization, it falls into the large & mid-cap scheme category, with a mandatory 35% allocation to mid-cap stocks, making it relatively risky, added Gupta.
Investment in mutual funds via SIP works wonders in the long term since investors get the benefit of compounding.
“The power of SIP cannot be overstated, especially for a fund like Mirae Asset Emerging Bluechip Fund, which allocates a significant portion to mid-cap stocks. Consistent investments through SIPs can aid investors in capitalizing on the potential for wealth creation over the long term,” said Amit Gupta.
Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 05 Oct 2023, 01:59 PM IST