Fund Of Fortnight

Every fortnight, we recommend one open-ended equity diversified fund that has the best potential of returns for the next one year considering its constituents remain the same. [EasyDNNnews:PaidContentStart]



Reason for recommendation
India’s GDP growth trajectory remains robust, and this augurs well for small and Mid-Cap companies that are high beta in nature. They tend to benefit disproportionately during expansionary phases of the economy. With improving domestic demand, government reforms in terms of GST rate cut, and liquidity support, mid-cap funds are poised to deliver higher growth compared to large peers. Hence, our choice of MF select this time is Mirae Asset Midcap Fund. The Fund has outperformed its category average across most periods, reflecting its consistent alpha generation. Over 3 months, the fund returned 3.78 per cent compared to the category’s 1.74 per cent, showing strong near-term momentum. On a 6-month basis, it surged 25.17 per cent against 19.77 per cent, highlighting superior short-term performance. The long-term 5-year record is robust, with 27.49 per cent, outperforming the category’s 26.57 per cent, showing its ability to create sustained wealth for investors. The fund maintains a diversified sectoral exposure with a bias towards growth-oriented industries. Financials (16.67 per cent) form the largest allocation, followed by Services (13.96 per cent) and Healthcare (10.75 per cent), reflecting the fund’s tilt towards emerging themes in India’s consumption and wellness story. Meanwhile, Automobile (8.28 per cent) and Capital Goods (8.27 per cent) indicate a play on cyclical recovery and infrastructure push. 

The top five holdings showcase a mix of growth drivers across industries. Delhivery Ltd. (3.04 per cent) positions the portfolio in the e-commerce logistics boom. Lupin Ltd. (3.01 per cent) represents strong participation in the pharmaceutical space. L&T Finance Ltd. (2.97 per cent) offers exposure to India’s financial deepening, while Cummins India Ltd. (2.93 per cent) taps into industrial and infrastructure demand. The Fund has demonstrated resilience and the potential to outperform in the long run, despite slight underperformance in certain periods. With a portfolio aligned to India’s growth drivers, the fund is well-positioned to capture opportunities in mid-caps. Investors seeking long-term capital appreciation and willing to ride out short-term volatility may consider allocating to this fund. 

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