Mirae Asset Withdraws Temporary Suspension On Mirae Asset Large And Midcap Fund

The Mirae Asset Large and Midcap Fund will open for all investment modes without caps, subject to minimum limits, from August 1, 2024.

Outlook Money

Updated on: 26 July 2024 8:49 pm

Mirae Asset Investment Managers (India) Pvt. Ltd. announces that the temporary suspension on SIP, STP, switch-ins and lump-sum investments in the Mirae Asset Large and Midcap Fund will end on August 1, 2024.

The fund will resume accepting subscriptions through SIPs, STPs, switch-ins and lump-sum investments starting August 1, 2024. This decision is based on several factors, including the expansion of the investment universe, increased market depth and liquidity, and the overall growth in fund size.

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Since November 2020, when SIP investments were initially restricted to ₹2,500 per month and later increased to ₹25,000 in October 2023, Indian equities have shown strong growth. As of July 24, 2024, the Nifty 50 Total Return Index (TRI) and Nifty Midcap 150 TRI have risen by about 1.2 times and 2.3 times, respectively, according to NSE India.

The Indian market's growth potential is evident in the increasing investment opportunities, particularly in mid and small-cap sectors. The market has grown over the last five years as a result of new stock listings, increasing capitalization and profitability. From November 2020 and June 2024, the market capitalization of the Nifty Midcap 150 index more than doubled to ₹82.5 lakh crore and the total earnings increased by about 142% to ₹2.1 lakh crore, according to Mirae Asset Mutual Fund.

This fund is part of OLM 50- Outlook Money's recommended list of schemes.

Swarup Anand Mohanty, Vice Chairman and CEO, Mirae Asset Investment Managers (India) Pvt. Ltd, said, "The significant growth in opportunities and capital markets is reflected in the large and midcap category flows. In FY19-20, the gross flows were ₹17,834 crores which have risen to ₹47,440 crores in FY23-24, growing ~2.7 times in this period. The category’s market cap construct of a minimum of 35% in both large and midcap has allowed absorption of such increased flows without significantly impacting the overall portfolio liquidity. This has given us the confidence to reconsider our subscription limits in the Scheme."