Mirae Asset Prudence Fund

An open ended hybrid scheme predominantly investing in equities.

Summary

Type	An Open Ended Hybrid Scheme.	Benchmark Index	CRISIL Balanced Fund Index
Min. investment: Additional purchase:	Rs.5, 000/- & in multiples of Re. 1 thereafter Rs 1,000 and in multiples of Re 1 thereafter	Plans:	Regular and Direct Plan: Sub options: (1) Growth Option and (2) Dividend Option The Dividend Option shall have 2 sub options: (a) Dividend Payout (b) Dividend Reinvestment.
Face Value	Rs 10 per unit	Expense Ratio:	Upto 2.50%
Entry Load	Nil	Exit Load:	If redeemed within 6 months (182 days) from the date of allotment - 2.00%; If redeemed after 6 months (182 days) but within 1 year (365 days) from the date of allotment - 1.00% ; If redeemed after 1 year (365 days) from the date of allotment - NIL.
Issue Opens	July 8, 2015	Issue Closes:	July 22, 2015

 

Investment Objective*

The investment objective of the Scheme is to generate capital appreciation along with current income from a combined portfolio of equity & equity related instruments and debt and money market instruments. The Scheme does not guarantee or assure any returns.

*Source: Scheme Information Document

 

Is this fund for you?

This fund is positioned as a lower risk alternative to a pure equities scheme, while retaining some of the upside potential from equities exposure. The Scheme provides the Investment Manager flexibility to shift allocations within the mentioned asset allocation in the event of a change in view regarding an asset class. The Scheme will primarily invest in equity and equity related securities.

The fund will invest atleast 65% of its assets in companies which are amongst the top 100 companies by market capitalization (at NSE) at the time of investment. The investment in larger companies will help provide more stability and less price volatility to the fund. This fund is positioned as a lower risk alternative to a pure equities scheme, while retaining the upside potential from equities exposure. The investment in larger companies will help provide more stability and less price volatility to the equity investments of the fund. The Scheme provides the Investment Manager flexibility to shift allocations within the mentioned asset allocation in the event of a change in view regarding an asset class. For the equity portion, to the extent the fund invests in equity shares, the focus would be to build a diversified portfolio of strong growth companies, reflecting the fund’s most attractive investment ideas, at all points of time.

The fund manager will broadly analyse the macro economy, industry trends and business cycles. He will invest in companies that benefit from macroeconomic, industry and sectoral trends (Top down Theme Overlay) after doing bottom up analysis and due diligence, quality of management in terms of corporate governance and commitment to minority shareholders etc.

The universe of stocks will comprise majorly of companies which are among the 100 companies by market capitalization at the time of investment and will include companies having a robust business models, enjoying sustainable competitive advantages as compared to their competitors and have high return ratios.

The asset allocation under normal circumstances:

 

Instruments	Allocation Range (%)		Risk Profile High/Medium/Low
	Minimum	Maximum
Equities and equity related instruments*:	65%	80%	High
-Companies which are amongst the top 100 companies by market capitalization at the time of investment	65%	80%	Low to Medium
-Companies which are not amongst the top 100 companies by market capitalization at the time of investment	0%	15%	High
Debt & Money Market Instruments	20%	35%	Low to Medium

*Equity and Equity related instruments include convertible debentures, equity warrants, convertible preference shares, derivatives, etc.

(Source: Scheme Information Document)

The performance of Mirae Asset Prudence Fund will be measured against the CRISIL Balanced Fund Index.

 

Fund Manager Profile

Mr. Neelesh Surana is Head of Equities at Mirae Asset Global Investments (India). He is a mechanical engineering graduate with an MBA in finance. He has a total work experience of more than 10 years. Prior to joining Mirae Asset Capital Management, Mr. Surana was associated with ASK Investment Managers Pvt Ltd where he was responsible for tracking sectors like Metals, FMCG and Pharma.

Mr. Yadnesh Chavan has over 8 years of experience in Fixed Income Dealing, Portfolio regulatory and compliance & Management of Debt Portfolios. He is responsible for the overall Fund management of Fixed Income funds. His last assignment was with Aviva Life Insurance Company India Ltd., where he was assisting in management of debt portfolios & portfolio risk management. Prior to that, he was also associated with Investment team of ICICI Lombard General Insurance Co. Ltd. & Max New York Life Insurance Ltd. handling similar responsibilities.

 

Fund Outlook

Considering investment objective, indicative asset allocation and suggestive portfolio strategies, it is likely that, the fund will invest predominantly in equity and partially in debt and money market instruments. Since MAPF is poised to invest a majority in large cap stocks while diversifying the portfolio significantly it is ideal for investing in uncertain times or during volatile market conditions.

It is a conservative fund meant for investors looking to take an exposure to equity while investing in debt at the same time. The fund will adjust its equity and debt exposure.

Thus, the return potential of the fund may also be on the lower side as compared to that of a pure equity fund while the losses would be lesser as well compared to a pure equity scheme. Success of MAPF is contingent primarily upon market volatility and opportunities prevailing in the markets.

 

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  DISCLOSURE AS PER SECURITIES AND EXCHANGE BOARD OF INDIA (RESEARCH ANALYSTS) REGULATIONS, 2014  

About the Company including business activity

Quantum Information Services Private Limited (QIS) was incorporated on December 19, 1989.

QIS was promoted by Mr. Ajit Dayal with an objective of providing value-based information / views on news related to equity markets, the economy in general, sector analysis, budget review and various personal products and investments options available to the Public. It was the first company to start equity research on an institutional level.

‘PersonalFN' is a service brand of QIS and was started in the year 1999. In 1999, the Company registered the Domain name www.personalfn.com for providing information on mutual funds and personal financial planning, financial markets in general, etc and services related to financial planning and research in various financial instruments including mutual funds, insurance and fixed income products to customers. It offers asset allocation and researched investment recommendations through its financial planning services.

Disciplinary history

There are no outstanding litigations against the Company, it subsidiaries and its Directors.

For the terms and condition for research report click here.

Details of associates

1. Money Simplified Services Limited;
2. PersonalFN Insurance Services India Limited ;
3. Equitymaster Agora Research Private Limited;
4. Common Sense Living Private Limited;
5. Quantum Advisors Private Limited;
6. Quantum Asset Management Company Private Limited;
7. HelpYourNGO Private Limited;
8. HelpYourNGO Foundation;
9. QIEF Management LLC, Mauritius
10. Natural Streets for Performing Arts Foundation;
11. Rahul Goel;
12. Ajit Dayal;
13. I V Subramaniam.

Disclosure with regard to ownership and material conflicts of interest
 

1. Neither QIS, it's Associates, Research Analyst or his/her relative have any financial interest in the subject Company, except QIS receives fees for providing research to Quantum Equity Fund of Fund (QEFoF) which is Fund of Fund scheme managed by QMF and our associates has financial interest in the subject company.
2. Neither QIS, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one per cent or more securities of the subject Company, at the end of the month immediately preceding the date of publication of the research report.
3. Neither QIS, it's Associates, Research Analyst or his/her relative has any other material conflict of interest at the time of publication of the research report except that QIS is, as per SEBI (Mutual Funds) Regulations 1996, an associate / group Company of Quantum Asset Management Company Private Limited and Trustees and Sponsor of Quantum Mutual Fund (QMF) and to that extent there may be conflict of interest while recommending any schemes of QMF. However any such recommendation or reference made is based on the standard evaluation and selection process, which applies uniformly for all Mutual Fund Schemes. The payment of commission (upfront /annualized & trail), if any, for any Schemes by QMF to QIS is also at arm's length and as per prevailing market practices.
    

Disclosure with regard to receipt of Compensation

1. Neither QIS nor it's Associates have any compensation from the subject Company in the past twelve months.
2. Neither QIS nor it's Associates have managed or co-managed public offering of securities for the subject Company in the past twelve months.
3. Neither QIS nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject Company in the past twelve months.
4. Neither QIS nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
5. Neither QIS nor it's Associates have received any compensation or other benefits from the subject Company or third party in connection with the research report
    

General disclosure

1. The Research Analyst has not served as an officer, director or employee of the subject Company.
2. QIS or the Research Analyst has not been engaged in market making activity for the subject Company.
    

Subject Company means Mutual Fund Schemes

Quantum Information Services Pvt. Ltd. 101, Raheja Chambers, 213, Nariman Point, Mumbai - 400021. Tel: +91 22 6136 1200
Website : www.personalfn.com CIN: U65990MH1989PTC054667

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