Withdrawal of Temporary Suspension on Mirae Asset Large and Midcap Fund Subscriptions

Mirae Asset Investment Managers (India) Pvt. Ltd. announced the withdrawal of the existing temporary suspension on subscriptions for the Mirae Asset Large and Midcap Fund, formerly known as the Mirae Asset Emerging Bluechip Fund. Starting from August 1, 2024, the fund will resume accepting subscriptions across all modes—Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), switch-ins, and lump-sum investments—subject to the minimum subscription limits as defined in the offer document of the scheme.

Background and Decision Rationale

The decision to lift the temporary suspension on various subscription modes is driven by several key factors, including the expansion of the investment universe, increased market depth and liquidity, and overall growth in the fund size. Initially imposed in November 2020, the restriction limited SIP investments to Rs 2,500 monthly, which was later increased to Rs 25,000 in October 2023. Since then, Indian equities have witnessed substantial growth. As of July 24, 2024, the Nifty 50 Total Return Index (TRI) and Nifty Midcap 150 TRI have risen by approximately 1.2 times and 2.3 times, respectively (Source: NSE India).

Market Growth and Resilience

The Indian market has demonstrated remarkable resilience and potential, particularly within the mid and small-cap sectors. Over the past five years, the number of stocks and the market capitalization within these sectors have significantly increased. For instance, the aggregate market cap of the Nifty Midcap 150 index has more than doubled to Rs 82.5 lakh crore from November 2020 to June 2024, with aggregate profits growing by approximately 142% to Rs 2.1 lakh crore during the same period.

Statement from Leadership

Mr. Swarup Anand Mohanty, Vice Chairman and CEO of Mirae Asset Investment Managers (India) Pvt. Ltd., commented on this development: “The significant growth in opportunities and capital markets is reflected in the large and midcap category flows. In FY19-20, the gross flows were Rs 17,834 crores, which have risen to Rs 47,440 crores in FY23-24, growing approximately 2.7 times in this period. The category’s market cap construct of a minimum of 35% in both large and midcap stocks has allowed the absorption of such increased flows without significantly impacting the overall portfolio liquidity. This has given us the confidence to reconsider our subscription limits in the scheme.”

Looking Ahead

The re-opening of the Mirae Asset Large and Midcap Fund to all subscription modes marks a significant milestone for the fund and its investors. The fund’s strategy of investing in both large-cap and mid-cap stocks positions it well to capitalize on the robust growth opportunities within the Indian equity markets. Investors can look forward to continued growth and value creation through this dynamic and resilient investment avenue.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.