MUMBAI: Mirae Asset Mutual Fund has decided to further restrict inflows into its flagship midcap scheme Emerging Bluechip Fund. Starting December 15, the fund house will offer systematic investment plan (SIP) on only one day, the 10th of every month.
“In the last one year, the monthly SIP/STP flows have increased from Rs 38 crore to Rs 168 crore. Hence, to further consolidate inflows and not impact the fund performance, we have decided to limit SIP inflows up to a maximum of Rs 25,000 applicable per person for one SIP date on 10th of every month,” says Swarup Mohanty, CEO, Mirae Asset Mutual Fund.
In October 2016, Mirae had stopped accepting lump-sum investments into this scheme, but continued to accept SIPs and STPs, capping them at Rs 25,000. Despite the restrictions, the assets under management (AUM) surged from Rs 2,942 crore in November 2016 to Rs 5,000 crore in November 2017. Over the last three years, the AUM has surged 10-fold from Rs 500 crore in September 2014.
Mirae Asset Emerging Bluechip has been one of the best performing funds in the midcap space, having returned 38.41% against the 33.72% appreciation for the relevant benchmark.
“Quarterly earnings in September have been tepid for mid- and small-cap companies with the market capitalisation below Rs 5,000 crore. Given the concerns over earnings, stretched valuations, and limited opportunities, funds are cautious about inflows,” says Vidya Bala, head of research, Fundsindia.com. Given the surge in valuations, fund houses are finding it tough to identify investment opportunities.
Many small- and mid-cap-oriented funds have already put restrictions on lump-sum inflows into their schemes. DSP Blackrock Microcap, IDFC Focused Equity, SBI Small and Midcap, and L&T Emerging Business are some schemes that have restricted lumpsum investments in the recent past.
Post-demonetisation, investors have been pouring money into equity mutual fund schemes. Equity-oriented mutual fund schemes have mopped up Rs 1.51 lakh crore in the first seven months of the current financial year. Demonetisation has accelerated the shift from physical savings to financial savings, and AUM of the industry rose to Rs 21.41 lakh crore in October 2017, from Rs 16.5 lakh crore in November 2016, translating into a rise of 29%.