Upcoming NFO - Mirae Asset Small Cap Fund NFO

Mirae Asset Small Cap Fund: Overview

Mirae Asset Mutual Funds on 10 January 2025 introduces the Mirae Asset Small Cap Fund NFO under Mirae Asset Investment Managers (India). NFO price is set at Rs.5000 and any amount thereafter. This new fund offer is available for subscription till 24 January 2025. This equity scheme will invest in small-cap stocks. 

This mutual fund scheme reopens for sale and repurchases on February 03, 2025.

Fund Objective

The fund uses a research-driven investment strategy to take advantage of growth prospects in India's small-cap market.

For more information about this new NFO Mutual Fund keep reading.

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Fund Overview

 Taxation:

Portfolio Construction: 

• Long-Term, High Earnings Growth.

• Elevated Capital.

• Low/Negligible leverage efficiency.

• Effective Corporate Governance.
  
  

Why Mirae Asset Small Cap Fund?

Investment Opportunities Overview

Mirae Asset Small Cap Fund Minimum SIP

The minimum SIP amount for this fund is Rs.99.

Scheme Plan: 

Mirae Asset Small Cap Fund-Direct

Mirae Asset Small Cap Fund-Regular

Mirae Asset Mutual Fund Details

• AUM of Rs.1,16,311 crore as of 31 Dec 2024.

• A total of 48 Schemes are currently running by this MF.

How to Invest in the Scheme After the Closure of the NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on 03 February 2025, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Mirae Asset Small Cap Fund” or directly with the AMC or simply click the ‘Banner’ below.

Asset Allocation (% of Total Assets) of the Scheme's portfolio will be as follows:

Peers of Mirae Asset Small Cap Fund

Risk Factors in Such Funds

• Market Risk and Price Risk: Equity investments, mainly in small-cap stocks, are subject to high price fluctuations and are prone to shocks due to changing market and economic scenarios.

• Liquidity Risk: Small-cap stocks are traded relatively infrequently, which may hamstring the scheme in terms of the purchase or sale of these securities.

• Credit Risk: Default in Interest or Principal Payments Borrowers concerning Debt Securities may limit the scheme's returns.

• Interest Rate Risk: Changes in interest rates will affect the valuation of fixed-income instruments. Generally, higher rates will decrease bonds, while lower ones will increase them.

• Derivative Risk: The use of derivatives also carries risks such as mispricings, imperfect correlation with underlying assets, and a greater potential for losses in comparison with traditional investments.
  
  

Past Performance of Smallcap Funds

Mirae Asset Small Cap Fund-Fund Managers

• Mr. Varun Goel

• Mr. Siddharth Srivastava.
  
  

Conclusion

The Mirae Asset Small Cap Fund brings an opportunity for investors looking to take advantage of the growing small-cap sector in India. With a long-term growth objective focusing on quality small-cap stocks, this scheme has a research-driven approach. Investors must keep in mind the high-risk nature of this fund before they make investments. The fund will reopen on February 3, 2025.

Disclaimer: Not a buy or sell recommendation. No investment advice is given. This NFO analysis is provided solely for informative purposes and should not be considered investment advice. Always conduct research and talk with a financial advisor before investing.