We have initiated coverage of Mirae Asset’s equity funds.
Both, Mirae Asset India Opportunities and MiraeAsset Emerging Bluechip, are headed by Neelesh Surana who is also the fund house’s chief investment officer.
Both funds get Silver ratings and each also has a current 5-star rating.
Our analyst’s confidence stems from the presence of Surana, who has been associated with the fund since its inception. He is aided by a fairly small but experienced investment team. Over the last year, the team saw two exits--Gopal Agrawal, who was the CIO, Mirae Asset Global Investments (India) and Sumit Agrawal (fund manager). However, it was an easy transition due to the cohesive team structure.
Surana believes alpha is generated through the right stock selection and not by sector rotation. He only invests in companies that meet the stock selection parameters and would look at both qualitative and quantitative factors. A key quantitative parameter he tends to follow is high return on capital and high cash flows.
We have a lot of comfort around the manager and his research-intensive investment approach. We view it positively that Surana works closely with the investment team, but also believe there is a huge key-person risk.
Overall, we like the investment process and believe that its consistency has led to consistency in performance and that the fund would tend to do well across market cycles over the long term.
Read more about Mirae Asset India Opportunities and Mirae Asset Emerging Bluechip.
