Fund's AUM jumped six times since August 2016

Mirae Asset Large Cap Fund (erstwhile Mirae Asset India Equity Fund) was reclassified from a multi-cap fund to a large-cap fund in May 2019. The fund is required to maintain a minimum exposure of 80% in large-cap stocks, as per Sebi's mandate. The fund's objective is to generate long-term capital appreciation by capitalising on potential investment opportunities by predominantly investing in equities of large-cap companies. The fund has been ranked in the top 30 percentile for the two quarters ended June 2019 in the large-cap funds' category of Crisil Mutual Fund Ranking (CMFR). Prior to this, the fund was ranked in the multi-cap category and was ranked 1 for the December 2018 and September 2018 quarters. The fund's month-end assets under management (AUM) jumped almost six times from Rs 2,284 crore in August 2016 to Rs 13,492 crore in July 2019.

Trailing returns

The fund outperformed its peers (the large-cap funds category in CMFR June 2019) across all the trailing periods. Its 10-year CAGR return was 15.47% compared with the benchmark's 10.88% and the peer group's 10.61%.

Portfolio analysis

While the fund repositioned itself from a multi-cap to a large-cap fund, it was observed that it has historically maintained high exposure to large-cap stocks, averaging at 82.81% during the past three years. As per the fund's July 2019 portfolio, its exposure to large-cap stocks was 84.96%, mid-cap at 9.94% and small-cap at 1.7%.

During the past three years, the fund invested across 28 sectors, with maximum exposure to banking (average 27.02%) followed by software (8.71%), consumer non-durables (7.64%) and auto (6.93%). Banks, software and petroleum products have been some of the major contributors to the fund's performance, while pharmaceuticals, auto and industrial capital goods have been amongst the laggards.

The fund invested in 101 stocks in the past three years and held 30 stocks consistently with an average exposure of 70.01%, indicating a high conviction by the fund managers. Consistently-held stocks were also amongst the top contributors to the fund's performance. They include HDFC Bank, ICICI Bank, Reliance Industries and Infosys. The other top performers include Vinati Organics, Info Edge (India) and Kotak Mahindra Bank.

The fund is co-managed by Neelesh Surana (CIO), Harshad Borawake and Gaurav Misra.