The scheme invests a minimum of 35% each in large and midcap stocks with a balance of 30% at the fund manager’s discretion in either large, mid, or small-cap stocks. It has returned 39.3% in the past year as against the category average of 42.5%. The benchmark BSE Large Mid-cap TRI gained 34.7% in the period.
Mirae Large and Midcap Fund’s decision to restart investments comes amid concerns that the current stock market levels are overbought.
The fund house said it has removed the investment restrictions because the investment universe has expanded, and there is increased market depth, liquidity, and overall growth in fund size. As per the fund house, the aggregate market cap of the Nifty Midcap 150 index has increased more than twofold to Rs 82.5 lakh crore from November 2020 to June 2024, with aggregate profits growing by 142% to ₹2.1 lakh crore during the same period.
“The Indian market’s resilience and potential are evident in the surge of investment opportunities, especially within the mid and small-cap sectors. Over the past five years, new listings have significantly increased the number of stocks, expanding the market capitalization and profit pool of these companies,” said the fund house in a note to investors.
