Mirae Asset Mutual Fund withdraws temporary suspension in large & mid cap fund

Mirae Asset Mutual Fund has announced the withdrawal of the existing temporary suspension on subscription in Mirae Asset Large and Midcap Fund. The fund will resume accepting subscriptions through Systematic Investment Plans (SIP), Systematic Transfer Plans (STP), switch-ins, and lump-sum investments. The changes will be effective from August 1. The scheme will be open for subscription across all investment modes without any capping while subject to minimum subscription limits as defined under the offer document of the scheme.

The fund house had suspended Systematic Investment Plan (SIP), Systematic Transfer Plan (STP), Switch-ins and lumpsum subscriptions.

The decision to lift the existing temporary suspension on subscription through various modes is based on multiple factors, including the expansion of the investment universe, increased market depth and liquidity, and the overall growth in fund size.

Since the initial restriction in November 2020, which limited SIP investments to Rs 2,500 monthly (later increased to Rs 25,000 in October 2023), Indian equities have experienced substantial growth. The Nifty 50 Total Return Index (TRI) and Nifty Midcap 150 TRI have risen by approximately 1.2 times and 2.3 times, respectively, as of July 24, 2024 (Source: NSE India).

The Indian market’s resilience and potential are evident in the surge of investment opportunities, especially within the mid and small-cap sectors. Over the past five years, new listings have significantly increased the number of stocks, expanding the market capitalization and profit pool of these companies. Notably, the aggregate market cap of the Nifty Midcap 150 index has increased more than twofold to Rs 82.5 lakh crore from November 2020 to June 2024, with aggregate profits growing by approximately 142% to Rs 2.1 lakh crore during the same period, according to a press release by the fund house.“The significant growth in opportunities and capital markets is reflected in the large and midcap category flows. In FY19-20 the gross flows were Rs 17,834 crores which have risen to Rs 47,440 crs in FY23-24, growing ~2.7 times in this period. The category’s market cap construct of minimum 35% in both large and midcap has allowed absorption of such increased flows without impacting the overall portfolio liquidity significantly. This has given us the confidence to reconsider our subscription limits in the Scheme,” said Swarup Anand Mohanty, Vice Chairman and CEO, Mirae Asset Investment Managers (India)Mirae Asset Large and Midcap Fund is an open-ended equity scheme investing in both large-cap and mid-cap stocks.