Mutual Funds: Should you improve your SIP quantity on this Mirae Asset Fund?

Mirae Asset Mutual Fund has made a major transfer by rising the Systematic Investment Plan (SIP) restrict for its standard scheme, the Mirae Asset Emerging Bluechip Fund. From October 10, the SIPs restrict will likely be elevated to ₹25,000, which was earlier ₹2500. Mirae Asset Mutual Fund has knowledgeable the traders by a put up on social media X.

For many traders, this improvement is certainly an enormous deal. The Mirae Asset Emerging Bluechip Fund has lengthy been the darling of traders. “The earlier SIP restrict of ₹2,500 had left some feeling constrained. Now, they’ve the chance to speculate as much as ₹25,000 by SIPs, offering them with extra flexibility and potential for larger 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 had been there limits on investments?

Mirae Asset Mutual Fund determined to restrict SIP investments on November 6, 2020. As per Gupta, the scheme imposed SIP limits as a response to its rising reputation. This step adopted an earlier resolution in October 2016 when the fund stopped accepting lump sum investments because of its property crossing the ₹11,000 crore mark.

Should traders improve their SIP?

On traders who ought to go for it, Gupta mentioned, “when you have a high-risk urge for food and a protracted funding horizon, it could be an appropriate selection.”

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,” mentioned Amit Gupta.

Disclaimer: The views and suggestions made above are these of particular person analysts, and never of Mint. We advise traders to verify with licensed specialists earlier than taking any funding choices.

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Updated: 06 Oct 2023, 12:44 PM IST

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