Comparing Mirae Asset Emerging Bluechip Fund and Canara Robeco Emerging Equity Fund
Investing in the stock market can be a challenging task, especially when it comes to choosing the right mutual funds. Two prominent funds that often catch the attention of investors are the Mirae Asset Emerging Bluechip Fund and the Canara Robeco Emerging Equity Fund. In this article, we will delve into the performance and characteristics of both funds, helping you make an informed decision.
Performance and Fund Categories
Both the Mirae Asset Emerging Bluechip Fund and the Canara Robeco Emerging Equity Fund have been top performers in their respective categories, which are Large and Mid Cap. These funds offer excellent and consistent returns over the long term. However, it is important to note that no single fund can consistently maintain its position at the top.
Both funds were mid-cap funds until last year, but due to a mutual fund reclassification, they are now categorized as large and mid-cap funds. This change should not be used to extrapolate past returns into the future. For those looking for a mid-cap fund, there are other options such as DSP midcap, LT midcap, or HDFC Mid Cap Opportunities.
Investment and Monitoring
Both funds have shown remarkable consistency and have a proven track record. If you are intent on selecting a long-term investment, it is recommended to regularly monitor the funds. Should any fund consistently rank in the top 20 and consistently outperform the index year over year, it is a strong indicator of a good investment.
Given their performance, both funds are considered excellent. The Mirae Asset Emerging Bluechip Fund is noted for having a limited subscription, suggesting a more selective approach to fund allocation. Additionally, the Canara Robeco Emerging Equity Fund is recognized for its limited weightage on each stock, with no stock holding more than 4% of the portfolio.
Investors should not be swayed by short-term performance. It is important to have patience and avoid frequent fund switches, as it is very difficult for one scheme to consistently stay at the top across different time periods.
Conclusion
Neither fund can be unequivocally deemed the better one. Both have demonstrated strong performance and consistency over the years. It is suggested that investors can choose one of the funds or diversify into both, given their mutual fund category and performance.
Investing in mutual funds requires a long-term perspective. The length of your investment period significantly impacts the returns you receive. So, always keep in mind that the duration of your investment is crucial.
References:
The performance of the funds over the last 7 years suggests that both have shown excellent consistency and have provided satisfactory returns. Direct advice from a CEO of Akshobhya Investments, Rathnadhar K V, emphasizes the importance of patience and long-term investment. Investor testimonials, like the author's own experience with both funds over a 7-year period, highlight the reliability and performance of both funds.By considering these factors, you can make an informed decision that aligns with your investment goals and risk tolerance.