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Mirae’s equity schemes may not figure in distributors’ recommended list
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Mirae Asset Mutual Fund has slashed the commission it pays distributors to sell its products in an unprecedented move that has miffed these intermediaries.
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Mirae Asset Mutual Fund has slashed the commission it pays distributors to sell its products in an unprecedented move that has miffed these intermediaries. The fund house said the step is aimed at discouraging distributors to sell their products to reduce flows into its schemes mainly Midcap, Focused and Tax-Saving. Distributors claim the asset manager has cut fees only to boost its profitability. The drop in distributor commissions will however not reduce investors’ annual costs in Mirae’s schemes.
Focused funds beat other schemes in returns
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ICICI Prudential tops the list with 49 per cent returns, followed by Mirae Asset at 46%
The sharp rally in the equity market during the last few months has focused funds delivering much better returns than other category of mutual fund schemes.
As per the SEBI Scheme categorisation mandate, the portfolio in focused fund should be not more than 30 stocks. The objective of focused funds is to deliver higher returns by investing in a limited number of high conviction stocks with strong growth prospects.
During the pandemic, the fund manager steered the focus of the portfolio on themes that could benefit from the disruption caused by Covid pandemic. The focus was to invest in companies with strong balance sheets and better earnings visibility.