An Open Ended Equity Scheme Predominantly investing in Mid Cap Stocks.The investment objective is to generate long term capital appreciation by investing in a portfolio of predominantly Midcap Stocks.
There is no assurance that the investment objective of the Scheme will be realized.
*Investment Framework of Mirae Asset Midcap fund *
Invest Predominantly (>65%) in Mid Cap companies (101-250th Company in terms of Full Market Cap).
The fund may also participate in other Indian Equities based on factors like relative valuations , Liquidity and market sentiments .
Aim to build a portfolio of companies having robust business models which have the potential to grow into tomorrow’s large caps.
Diversified portfolio with participation across sectors
Bottom-up approach –driven by value investing in growth oriented businesses.
Fund Manager : Mr.Ankit Jain
Benchmark : Nifty Midcap 100 Index (TRI)
Mirae Asset Midcap Fund is suitable for investors who are seeking
– More opportunities to identify inefficiencies in an Under researched market space.
– Higher Alpha in Midcap as early identification has possibly twin Advantages of (a) higher Earnings growth and (b) potential P/E Expansion .
1. 본 자료는 미래에셋이 제작한 것이며, 투자권유를 위한 광고물로 활용될 수 없고, 투자자에게 배포될 수 없습니다. 본 자료에 수록된 내용은 신뢰할만한 자료 및
정보로부터
얻어진 것이나 당사는 그 정확상이나 안정성을 보장할 수 없습니다. 따라서 어떠한 경우에도 본 자료는 고객의 투자 결과에 대한 법적 책임소재에 대한 증빙자료로
사용될 수 없습니다.
New Fund Offer opens on : 08/07/2019
New Fund Offer closes on : 22/07/2019
Scheme Reopens on or before :30/07/2019
3. Mirae Asset Global Investments
Company Lifecycle – Investment Universe – MAMCF*
2 |
TheIdeaPhase
FromIdeato
Business
ThegrowthPhase
TheScalingUpTest
TheMidlifeCrisis
TheEndGame
Time
CompanyRevenues/Earnings
Revenues
Small Cap Mid Cap Large Cap
Growth Stage
Stage 1:
Growth
Stage 2:
Young Growth
Stage 3:
High Growth
Stage 4:
Mature Growth
Stage 5:
Mature/Stable
Stage 6:
Decline
Earnings
Investment
Universe
• Under researched – provides investors opportunities to identify companies with high growth
potential – Companies in “Growth phase” of the business life cycle”
• More established – stronger overall market presence and more access to capital than small-cap
companies. Established business model and the company is out of pre-emergence stage.
* MAMCF Represents Mirae Asset Midcap Fund
4. Stock Universe – Market Cap Range*
Large Cap –
Top 100
Companies
Mid Cap – Top
101st to 250th
Companies
Small Cap – 251st
Company and beyond
*As compiled by AMFI - As on 31st December 2018. *Classification as per SEBI circular (SEBI/HO/IMD/DF3/CIR/P/2017/114) dated October 6th, 2017, the universe
of "Mid Cap" shall consist of 101st to 250th company in terms of full market capitalization.
I. Extensively researched
II. Moderate Growth
III. High Institutional Holding
I. Under researched, Under
owned
II. High Growth
III. Demonstrated
Management History
I. Many fall at pre-
emergence stage
II. Business models not very
established
III. Under researched, Under
owned
5. Stock Universe – Market Cap Range*
*As compiled by AMFI - As on 31st December. *Classification as per SEBI circular (SEBI/HO/IMD/DF3/CIR/P/2017/114) dated October 6th, 2017, the universe of
"Mid Cap" shall consist of 101st to 250th company in terms of full market capitalization.*Stock Cut Off- Market Cap above Rs.150 Crores. Historical performance
indications and financial market scenarios are not reliable indicator of current or future performance.
Large Caps
Market Cap 1st too 100th
Company
Mid Caps
Market Cap 101st to 250th
Company
Small Caps
Market Cap 251st to 500th
Company
1st
100th
101st
250th
251st
500th
1st – Rs. 754,972
Crores
100th – Rs. 28,333
Crores
Average – Rs.
102,947 Crores
250th – Rs. 8,591
Crores
101st – Rs. 27,944
Crores
Average- Rs.
15,715 Crores
251st – Rs. 8,517
Crores
500th – Rs. 2,562
Crores
Average-Rs. 4,652
Crores
6. Mid caps: Under Researched & Under Owned
Under Researched: Usually, fewer Analysts Cover
Mid Cap Stocks Research Coverage
Under Owned: FPI and MF ownership levels in
midcaps are generally lower than those in large
caps
%ofCompaniesCovered
Number of Brokerage Houses Covering a
Company
Source: Bloomberg. Data as of 31st May 2019
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
0 5 10 15 20 25 30 35 40 45 50 55
Nifty 100 Nifty Midcap 100
Ownership (%) Nifty 50 Nifty Midcap 100
Promoters 41% 56%
FPIs & FDI 28% 15%
DII (Insurance & MF) 16% 13%
Public/Others 15% 16%
Total 100% 100%
7. Mid-cap and Large Cap Sector Analysis
Source: Bloomberg. Data as of 31st May 2019
Sector Weight (%)
Financial Services 37.42
Energy 13.73
Consumer Goods 12.22
IT 12.14
Automobile 6.23
Pharma 3.71
Construction 3.70
Metals 3.36
Cement & Cement Products 2.58
Telecom 1.64
Services 1.15
Fertilizers & Pesticides 0.66
Industrial Manufacturing 0.52
Media & Entertainment 0.36
Chemicals 0.36
Textiles 0.21
Nifty 100 TRI
Sector Weight (%)
Financial Services 33.03
Consumer Goods 15.65
Energy 8.90
IT 7.17
Automobile 6.91
Pharma 6.47
Industrial Manufacturing 5.63
Construction 3.24
Services 2.07
Fertilizers & Pesticides 1.80
Healthcare Services 1.67
Chemicals 1.63
Cement & Cement Products 1.61
Metals 1.53
Textiles 1.15
Media & Entertainment 1.07
Telecom 0.47
Nifty Midcap 100 TRI
• More Diversified – Nifty Midcap 100 is more diverse as compared to Nifty 100 TRI .
Note: Industry wise classification as recommended by AMFI Sector Allocation may vary from time to time.
9. 8
Long Track Record of Outperformance
Growth of a Hypothetical Rs.10,000 Investment. Measured by Index Performance
Midcap stocks, as measured by the Nifty Midcap 100 TRI Index, have outperformed both large
and small caps.
Source: Bloomberg. Data as of 31st May 2019. Past Performance may or may not sustain in the future future
-
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Apr-05 May-19
Nifty 100 TRI Nifty 50 TRI Nifty Midcap 100 TRI Nifty Smallcap 250 TRI
72,584
71,064
68,898
64,979
10. 9
SIP Performance – Nifty Midcap 100 TRI Index
0.00
0.50
1.00
1.50
2.00
2.50
3.00
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
May-08 May-19
Monthly Units Purchased Total Investments Total Investment Value
Midcap Fund performance is represented by Nifty Midcap 100 TRI. The SIP returns are calculated by XIRR approach assuming
investment of Rs. 10000 on the 1st working day of every month.
Scenario- Assuming an investor starting monthly SIP of Rs. 10,000 from 1st May 2008. The
total amount invested shall be Rs. 13,30,000. The total investment value as of 31st May 2019
shall be Rs. 29,36,620.
Investment value
decreases but more
units are purchased
in downtrend
Once market
rebounds,
investment value
increases steeply
Source: Bloomberg. Data as of 31st May 2019. Past Performance may or may not sustain in the future.
Valueofinvestment(InRs.)
NumberofUnits
11. 10
Midcap Performance Across Market Cycles
-56.56
114.59
-1.71
55.92
-19.28
54.05
12.36
-65.60
164.40
-14.02
78.45
-10.83
82.29
-13.94
-100.00
-50.00
0.00
50.00
100.00
150.00
200.00
Sub-Prime Crisis
(Jan '08-Mar-'09)
Recovery post
Sub-prime crisis
(Apr '09-Dec '10)
European Crisis
(Jan'11-June'13)
Post European
Crisis
(Jul'13-Feb'15)
China Slowdown
(Mar'15-Feb'16)
Global liquidity
and domestic
reforms
(Mar'16-Dec'17)
Global trade war
concerns
(Jan'18 onwards)
NIFTY 100 - TRI Nifty Midcap 100 - TRI
Thus, it can be inferred that Midcap stocks, as measured by the Nifty Midcap 100 TRI Index,
have generally underperformed during Crisis and Slowdowns. Though longer inverted time horizon
typically yielded in better returns for Midcaps v/s Largecap.
Returnsin(%)
Source: Bloomberg. Data as of 31st May 2019. Past Performance may or may not sustain in the future.
12. Mirae Asset Global Investments
Nifty Midcap 100 TRI Returns Distribution – Rolling Return
11
3 Year Period*
Minimum -7.77%
Maximum 39.62%
Negative Returns 7.73%
Positive Returns 92.97%
Average Returns 15.91%
5 Year Period*
Minimum -2.34%
Maximum 29.10%
Negative Returns 1.60%
Positive Returns 98.40%
Average Returns 15.00%
Over a Longer Term Horizon the disparity in positive and negative returns are mostly minimized.
Staying Invested over a long time horizon leads to more possibility of generating a positive return.
-20.00% -10.00% 0.00% 10.00% 20.00% 30.00% 40.00% 50.00%
Distribution of 3 Year Return Distribution of 5 Year Return
Source: Bloomberg. Data as of 31st May 2019. Past Performance may or may not sustain in the future.
*The data represents 3 Years/5 Years Rolling Returns Since the inception of the benchmark. Minimum and Maximum returns denote the 3 Year or 5 Year CAGR Return generated in the Nifty
Midcap 100 TRI Index. The Positive and Negative Returns represents the Percentage Times the Nifty 100 TRI Index generated a Positive or Negative Returns.
NumberofObservations
CAGR Returns (In %)
13. 12
Why Invest in Midcap Equities?
Benchmark 10 Years Returns SD Annualized Sharpe Ratio
Nifty 100 TRI (Large Cap) 12.35 19.09 0.040
Nifty Midcap 100 TRI (Mid Cap) 14.28 21.16 0.048
Nifty Smallcap 250 TRI (Small Cap) 12.00 21.95 0.035
8
12
16
18 19 20 21 22 23
Nifty Smallcap 250 TRI (Small Cap)
Nifty Midcap 100 TRI (Mid Cap)
NIFTY 100 TRI (Large Cap)
Standard Deviation (SD)
Returns
Source: Bloomberg. Data as of 31st May 2019. Past Performance may or may not sustain in the future
14. 13
The Journey – From Midcap to Large cap
Company
Current Mcap
(INR Crores)
As of 31st
May 2019
2009 High Mcap
(INR Crores)
% Change in
Market Cap ie Midcap to Large cap /
% Change in PAT
Britannia Industries 71,949 4,464
Pidilite Industries 65,527 5,208
Titan 113,548 6,516
UPL 52,645 8,054
UltraTech Cement 126,523 11,381
Tech Mahindra 75,130 12,866
Dabur 72,241 14,627
Asian Paints 135,976 17,257
BPCL 83,471 23,068
HCL Technologies 150,906 25,235
Source: Bloomberg. Data as of 31st May 2019. The aforementioned stocks are for illustration purposes only and it is not necessary that the same shall be part of MAMCF's portfolio. This is neither an
indication nor an advice to invest into these stocks. Investors are advised to consult their financial advisor before investing. There is no guarantee that the stocks illustrated as above shall perform in
a similar pattern in future. Past Performance may or may not sustain in the future.
Midcap stocks, have the potential to become the next large caps over the past 10 years. These
Mid caps have transitioned to large cap because of twin advantage of solid earnings growth and
expansion in valuation multiple in line with growth in company size
498%
262%
688%
394%
484%
1012%
554%
1643%
1158%
1512%
712%
842%
389%
252%
265%
123%
339%
560%
702%
634%
15. Mirae Asset Global Investments
0
200
400
600
800
1000
1200
Apr-10
Jan-11
Sep-11
Jun-12
Feb-13
Oct-13
Jul-14
Mar-15
Dec-15
Aug-16
May-17
Jan-18
Sep-18
Jun-19
Large Private Bank
14
Rs in Cr FY ‘09 FY ‘19 CAGR 09-19
NII x 19.3x 34.4%
PPOP x 20.1x 35.0%
PAT x 22.3x 36.4%
Market Cap x 8.2x 23.4%
ROE (%) x% 1.6x%
NII – Net interest income, PPOP – Pre provisioning operating profit
Buy ₹57.
Buy ₹ x
CMP ₹ 8.14x
0
500
1000
1500
2000
2500
3000
Apr-10
Jan-11
Sep-11
Jun-12
Feb-13
Oct-13
Jul-14
Mar-15
Dec-15
Aug-16
May-17
Jan-18
Sep-18
Jun-19
Specialty chemical company
Rs in Cr
FY ‘09 FY ‘19 CAGR 09-19
Revenue x 5.8x 19%
EBITDA x 11.9x 28%
PAT x 11.3x 27%
Market Cap x 27.4x 40%
ROE (%) x% 0.7x%
CMP ₹27.4x
Buy ₹x
The Journey – From Midcap to Large Cap
Data for illustrative purpose only may not represent the actual performance of a company.
16. Is There a Compelling Case to Invest in
Midcaps Today?
17. 16
Nifty Midcap earning expected to be steady
Nifty Midcap Earnings are expected to grow at a steady rate over the next few years, Earnings
have grown by 5.3%/8.0%/8.0% for Midcap stocks over the past 3/5/10 Years .
Source: Bloomberg. Data as of 31st May 2019. Past Performance may or may not sustain in the future.
284
488
408
481
674
495 499
558
625
501
595 696
897
1,247
1,441
-16%
18%
-27%
1%
12% 12%
-20%
19% 17%
29%
39%
16%
FY07 FY09 FY11 FY13 FY15 FY17 FY19 FY21E
Nifty MidCap YoY (%)
18. 17
Sectoral Earnings Trend
-20000
0
20000
40000
60000
80000
100000
120000
140000
FY17 FY18 FY19 FY20 FY21
Financials Industrials Consumer Discretionary Utilities
Materials Health Care Information Technology Energy
Consumer Staples Communication Services Real Estate
A major part of Nifty Midcap Earnings are expected to come from Financial Sector over the next
couple of years
Source: Bloomberg. Data as of 31st May 2019. Past Performance may or may not sustain in the future.
19. 18
Midcap v/s Large Cap Valuations are attractive
Midcap Valuations have reasonably corrected over the last 1 year as compared to the large caps
and thus can be inferred that they offer a reasonable entry point.
-50%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
NSE Midcap 12m Fwd P/E - % Premium/ Discount to Nifty Median
Only Period when Midcap
Valuations were usually higher
than Large Cap
Source: Bloomberg. Data as of 31st May 2019. Past Performance may or may not sustain in the future.
20. 19
Mid Caps – Recent correction a buying opportunity
Source: Bloomberg. Data as of 31st May 2019. Past Performance may or may not sustain in the future.
26% 18%
12%
16% 20%
-70
-50
-30
-10
10
30
Feb-05
May-19
Difference Nifty-50 Vs Midcap-100 rolling return (%)
Average: -4%
Current Differential = 14%
The difference between Nifty-50 Vs Nifty Midcap 1 Year Rolling Returns is almost 14% at current
levels which gives us a good entry point into the Midcaps now.
21. 본 자료는 미래에셋이 제작한 것이며, 투자권유를 위한 광고물로 활용될 수 없고, 투자자에게 배포될 수 없습니다. 본 자료에 수록된 내용은 신뢰할만한 자료 및
정보로부터
얻어진 것이나 당사는 그 정확상이나 안정성을 보장할 수 없습니다. 따라서 어떠한 경우에도 본 자료는 고객의 투자 결과에 대한 법적 책임소재에 대한 증빙자료로
사용될 수 없습니다.
New Fund Offer opens on : 08/07/2019
New Fund Offer closes on : 22/07/2019
Scheme Reopens on or before :30/07/2019
22. Mirae Asset Global Investments
Investment Details
21
Asset Allocation: Under normal circumstances, the asset allocation will be as follows:
Types of Instruments
Indicative allocation
(% of total assets) Risk Profile
Minimum Maximum
Equities and equity related securities* of midcap
companies**
65% 100% High
Equities and equity related securities other than above 0% 35% High
Money market instruments / debt securities,
Instrument s and/or units of debt/liquid schemes of
domestic Mutual Funds
0 35%
Low to
Medium
*Equity and Equity related instruments include convertible debentures, equity warrants, convertible preference shares, equity derivatives etc.
** The investment universe of “Large Cap” “Mid Cap” and "Small Cap" shall comprise companies as defined by SEBI from time to time. As per SEBI
circular (SEBI / HO/ IMD/ DF3/ CIR/ P/ 2017/ 114) dated October 6, 2017.
23. Mirae Asset Global Investments
Mirae Asset Midcap Fund Framework
22
• Aims to Invest at least more than 65% in Midcaps and
remaining will be invested across Large caps and
Small Caps (based on the current market
conditions )
• Aim to build a portfolio of strong growth companies,
reflecting our most attractive investment ideas.
• Aim to create a robust portfolio to avoid concentration
risk and liquidity risk.
Benchmark Nifty Midcap 100 TRI
Market
Capitalization
Large
Mid
Small
Style Flexibility
24. Mirae Asset Global Investments
BUSINESS
SELECTION
MANAGEMENT
VALUATION
PORTFOLIO
Investment Philosophy – Stock Selection
• Growth Companies which address large Market
Opportunity
• Capital Efficiency: Sustainable Competitive
Advantage and ROI
• “Margin of Safety” (Value > Price)
• Growth-at-Reasonable-Price (GARP).
• Corporate Governance &
Thought Leadership
Key for stock selection especially
in Midcaps
• Diversified Portfolio
• Active Monitoring
23
25. Mirae Asset Global Investments
Research Coverage & Process*
Quantitative Screening
• Management Quality
• Earnings Growth
• Return on Investment
• Size, Liquidity, and Benchmark
Extensive Research
• Management Meetings
• Detailed financial models
• Market intelligence :Dealer checks,
Plant visits, Industry experts
• Broker Support
Considerations for Portfolio Construction
• Analyst recommendation
• Valuation screener
• Benchmark, Liquidity, etc.
• Risk Parameters
Investment Universe
400+ Stocks
Quantitative Screening
Coverage List
Price – Value Analysis
Research
Actual Portfolio
24
* Slide contains only brief description of the process.
Focus is on extensive ‘Primary Research’
26. Mirae Asset Global Investments
Risk Mitigation Measures
In order the avoid liquidity and concentration risk and the risk associated with equity investments,
risk mitigation measures we shall follow are:
• Adequate Sector and Stock Diversification,
• Active and nimble portfolio management.
• Aims to Invest in good quality companies.
25
Some of the Risk Mitigation Measures
Concentration Risk :The Scheme will try and mitigate this risk by investing in large number of companies so as to maintain optimum diversification and
keep stock-specific concentration risk relatively low.
Liquidity Risk: As such the liquidity of stocks that the fund invests into could be relatively low. The fund will try to maintain a proper asset-liability match to
ensure redemption / Maturity payments are made on time and not affected by illiquidity of the underlying stocks.
Risks Associated with Equity Investments: The scheme has a diversified portfolio to counter the volatility in the prices of individual stocks. Diversification in
the portfolio reduces the impact of high fluctuations in daily individual stock prices on the portfolio.
To know Risk mitigation measure in detail, please refer to the Scheme Information Document
28. Mirae Asset Global Investments
Investment Details
Type of Scheme : An open ended equity scheme predominantly investing in mid cap
stocks.
Minimum Investment : Investors can invest under the Scheme during the New Fund Offer
period and ongoing offer period with a minimum investment of Rs.5,000/- and in multiples of
Re. 1/- thereafter.
Fund Managers : Mr. Ankit Jain
27
Plans / Options : The scheme will have Regular Plan and Direct Plan. Both Plans would
offer (1) Growth Option & (2) Dividend Option. The Dividend Option will have 2 sub options
(a) Payout (b) Reinvestment
29. Mirae Asset Global Investments
Investment Details
Systematic Investment Plan (SIP) : Monthly / Quarterly: Minimum 5 transfer of ₹ 1,000/-
each and in multiples of ₹ 1/- thereafter
Load : Entry load : N.A
Exit load : If redeemed within 1 year (365 days) from the date of allotment: 1%
If redeemed after 1 year (365 days) from the date of allotment: Nil
28
Benchmark : Nifty Midcap 100 Index TRI
30. Mirae Asset Global Investments
Disclaimer
29
The information contained in this document is compiled from third party and publically available sources and is
included for general information purposes only. There can be no assurance and guarantee on the yields. Views
expressed by the Fund Manager cannot be construed to be a decision to invest. The statements contained herein
are based on current views and involve known and unknown risks and uncertainties. Whilst Mirae Asset Global
Investments (India) Private Limited (the AMC) shall have no responsibility/liability whatsoever for the accuracy or
any use or reliance thereof of such information. The AMC, its associate or sponsors or group companies, its
Directors or employees accepts no liability for any loss or damage of any kind resulting out of the use of this
document. The recipient(s) before acting on any information herein should make his/her/their own investigation
and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on
the basis of information contained herein. Any reliance on the accuracy or use of such information shall be done
only after consultation to the financial consultant to understand the specific legal, tax or financial implications.
Investors are advised to read the Scheme Information Documents of the respective schemes to know in detail
about the product before investing.
MUTUAL FUND INVESTMENTS ARE SUBJECT TO MARKET RISKS, READ ALL SCHEME RELATED
DOCUMENTS CAREFULLY.
For further information about other schemes (product labelling and performance of the fund) please visit the
website of the AMC: www.miraeassetmf.co.in