Mirae Asset Mutual Fund was originated in Asia in 1997. It is the mutual fund division of a South Korean fiscal service company, Mirae Asset Financial Group whose asset managing arm is Mirae Asset Financial Group that has registered its presence in 12 countries in 5 continents. It has global capacity to deliver the best services to its investors across the globe.
Its prime goal is to provide insightful fiscal strategies along with coherent performance to its investors with the help of its versatile products.
Since 2007, Mirae Asset Mutual Fund has been present in the mutual fund market of India. Currently, it has a total of 6400 associates involved with it. It has plans to expand its presence across the nation. Over the last three years, MAFM has maintained stability in the growth of AUM (Assets under Management).
The Key Features of Mirae Asset Mutual Fund
The following are the key features of Mirae Asset Mutual Fund:
- Stable Performance
The funds offered by MAMF reflect stability in the performance.
- Fast Growth
Over the past a few years, MAMF has become the fastest growing investors’ base.
Different Types of Funds Offered by Mirae Asset Mutual Fund
Mirae Asset Mutual Fund offers eight varieties of mutual funds for three classes, i.e. equity funds, fixed income funds, and thematic funds. The following are the three categories of mutual funds in details:
- Equity Funds
These funds make the investment in the stock or equity market, as these markets are extremely dynamic and they offer golden opportunities to reap higher rate of interest as compared to the competitors’ vehicles. Because of market volatility, equity funds are generally classified as the high or low risk, depending totally on the market conditions.
The fund house presently offers 2 equity vehicles to make the investment in Asset Emerging Bluechip Fund and Mirae Asset India Opportunities Fund. Both schemes in the equity category are the products of novelty and they are well-connected to equity vehicles.
- Fixed income Funds
As the name suggests, fixed income funds aim at providing fixed income and that too with low-risk investments that are made in debt vehicles. Mirae Asset offers fixed income funds in both short-term and mid-term options. These funds are an outstanding option to make the best use of the idle money deposited in your bank accounts, as such schemes have a potential to make your investments grow. At the same time, it ensures that you have a good portfolio.
Under this category, MAMF offers three products - Mirae Asset Short-Term Bond Fund, Mirae Asset Cash Management Fund, and Mirae Asset Ultra Short-Term Bond Fund.
- Thematic Funds
Thematic funds are targeted as emerging markets funds/ China-specific funds. Generally, these funds include equity vehicles where money is invested in funds that are open-ended and belong to a specific market or segment of the market.
MAMF offers three distinguished kinds for the thematic products category. For the consumption-oriented growth in the Indian and Chinese markets, Mirae Asset India-China Consumption Fund is offered. For making the investment in local Chinese companies, Mirae Asset China Advantage Fund is offered. For making the investment in equity fund of corporations that are involved with commodities in sectors related to the emerging markets, Mirae Asset Global Commodity Stock Fund is offered.
Why Select Mirae Asset Mutual Fund?
Mirae Asset Mutual Fund offers innovation-driven investment and product opportunities to the investors.
- Great Exposure
It provides a great exposure to various sectors of other rising economies of the world.
- Strong Endorsement
The group is backed by the giant financial service provider - Mirae Asset Global, which is headquartered in Seoul.
- Robust Network
The fund house takes pride in having the network of branches and associates all over the country.
- Excellent Customer Service
MAMF provides excellent customer service to their valued clients.
- Growth Prospects
The company is new in the Indian market with the promising growth opportunities for investors.
Mirae Asset Mutual Fund to Alter Exit Load Structure for Equity Schemes
Mirae Asset Mutual Fund is one of the increasingly appealing fund houses that offers best mutual funds that are meant to cater to varied financial aspirations of its customers. Launched in the year 2007, the fund house is especially popular, thanks to its investor-oriented mutual funds investment schemes and inherent flexibility of plans.
As of lately, the fund house has decided to tamper with the existing exit load structures for not more than five of its popular equity schemes. According to the upgraded revisions, the fund house will levy a one per cent exit load upon the retrieval of units above fifteen per cent within one year from the date of allotment.
The schemes to undergo the revision include Mirae Asset India Equity Fund, Mirae Asset Great Consumer Fund, and Mirae Asset Hybrid Equity Fund,Mirae Asset Emerging Bluechip fund,Mirae Asset Healthcare Fund.
Exit Load Structures: Mirae Asset India Equity Fund under Mirae Asset Mutual Fund
- Essentially, the Indi equity fund is an open ended equity mutual funds investment scheme meant to cover small cap, mid cap and large cap stocks. Formerly, the exit load was charged at one per cent. However, this applies if redeemed within one year of the allotment.
- According to the revised exit load structure, no exit load shall be charged upon the allotment of fifteen per cent of the units within one year of the date of allotment.
Mirae Asset Emerging Bluechip Fund as a part of Mirae Asset Mutual Fund
- As far as this fund is concerned, it is one of the best mutual funds offered by Mirae Asset. It is mainly an open ended equity scheme meant to cover small cap, mid cap,and large cap stocks.
- According to the revised exit load structure, redemption would be done on the basis of First in First out. Accordingly, a one per cent exit load shall be charged upon the allotment of more than fifteen per cent of the units within one year of the date of allotment.
- No exit load shall be charged if the redemption is affected after one year or 365 days from the allotment date.
Mirae Asset Great Consumer Fund as a part of Mirae Asset Mutual Fund
- Another open ended equity fund, the revised exit load structure follows the same train as that of the previous scheme.
- However, it is especially significant to note that for investors who have not opted for SWP under the plan, a one per cent exit load shall be charged within one year of the date of allotment.
- Similarly, no exit load shall be charged if the redemption is affected after one year or 365 days from the allotment date.
Mirae Asset Healthcare Fund
- The revised exit load structure follows the same train as that of the previous mutual funds investment scheme.
- For investors who have not opted for SWP under the plan, a one per cent exit load shall be charged within one year of the date of allotment.
- Similarly, no exit load shall be charged if the redemption is affected after one year or 365 days from the allotment date.
Mirae Asset Hybrid Equity Fund as a part of Mirae Asset Mutual Fund
- According to the existing exit load structure, a one per cent exit load was charged upon the redemption within the first year of the allotment while no exit load was charged for redemption after the first year of the allotment.
- However, according to the revised exit load structure, no exit load shall be charged upon the allotment of fifteen per cent of the units within one year of the date of allotment.
What is the Purpose of Exit Loads under as a part of Mirae Asset Mutual Fund?
While exit loads keep getting revised and upgraded, one should not elude the purpose of the quintessential exit load structure. Essentially, one of the fundamental aims of exit load is to prevent investors from redeeming their money prematurely from Mirae Asset Mutual Fund.
In other words, exit load is used to prevent the concerned investor from clawing it out too early. Formerly, the exit load would essentially go into meeting the varied expenses of the concerned fund manager. However, thanks to updating the structure on a regular basis, the mutual funds are formally expected to rebound the money collected into the concerned fund itself. Consequently, the process translates into scopes of higher returns for the investor concerned.
So far as the prospects of investment-savvy policyholders are concerned, they generally stick to debt funds to reap quick and big returns. However, according to experts, unprecedented exits would lower the assets under management rather drastically. Consequently, the schemes may be affected and hamper the prospects of investors eventually.
In order to stem this, the exit load structures have been subject to the recent revisions. As mentioned before, the changes are attempted to prevent investors from taking short term calls on interest rate movements. Essentially, any fund house looks forward to expecting long term bucks flowing into their respective debt funds. The performance of the portfolio may be tampered by the string of abrupt exits.
Also, it is important to note that the exit load changes have not been proposed for short term bond funds. Essentially, the cardinal reason behind the focus on long term bond funds is that most income funds count on credit strategy which typically claims a relatively longer duration.
On the other hand, it is important to mark the other ramifications of the changes. The exit load changes can have a significant impact on the short term debt investors. Indeed, the load is meant to penalize for having exited prematurely. At the same time, the exit load changes bode especially well for the long term investors.
Essentially, a higher load will prevent such investors from earning quick bucks. Apart from that, it is equally worth noting that as the exit load charge will eventually rewind into the scheme itself, it will result in an increase in the fund’s net asset value which will in turn benefit the concerned policyholders.
Generally speaking, the prospects of duration funds under Mirae Asset Mutual Fund bode well in the near future, thanks to the revisions in the elementary exit load structure. Keeping with the revised structure, the interest rates are expected to fall, thereby enhancing the prospects of duration funds.
Load Structure of Mirae Asset Mutual Fund
As it is well known, there are two kinds of load: the entry load and the exit load. You can use the online mutual fund calculator to get an approximate idea of the fees & charges associated with both types of loads.
Broadly speaking, load is also known as the redemption fee or retrieval fee. It is important to keep in mind that load amounts tend to fluctuate with time. Specifically, the particular load amount is put to use by the AMC in order to shell out commissions to the concerned distributor and to meet with other marketing costs.
So far as the Mirae Asset Mutual Fund is concerned, it is important to note that no entry load is applicable, as per the latest SEBI guidelines. The relevant commission is disbursed to the distributor by the investor on a one to one basis. Naturally, in the course of the payment, the investor would take into consideration the relevant factors related to the performance of the concerned distributor.
According to the guidelines put forth by Mirae Asset Mutual Fund, investors are advised to go through the specific load structures before investing in a scheme. Most of the times, investors tend to get confused as to whether any exit load is imposed upon switching between funds. Although there is no specified direction to the same, it is none the less worth keeping in mind that the imposition of an exit load depends on the decision taken by the Trustee.
Apart from switching, it is equally vital to underscore that any kind of withdrawal under SWP shall attract an exit load with Mirae Asset Mutual Fund. At times, investors might fluctuate between the sub options of a single plan. In that case, no exit load shall be charged for switching between the sub plans.
Importantly, the imposition of an exit load or redemption fee depends on the holding period of a particular unit. Generally speaking, the said time periodis calculated from the date of allotment. If the concerned units do not comply with the rules of the current exit load structure, they shall be charged a redemption fee. On the other hand, units which fulfill the minimum number of days under the current exit load structure shall be exempt from the redemption fee.
As stated earlier, the entire load amounts in Mirae Asset Mutual Fund are aimed towards enabling the AMC to do away with the expenses incurred due to marketing and selling. It is important to keep in mind that the respective load amounts shall be retained by the AMC unless there is a superfluity of load; in that case, the redundant amount shall be directed towards the scheme itself in accordance with the preferences of the AMC.
Although the load structure remains the same, it is nevertheless subject to the priorities of the AMC. Indeed, the Trustee may wish to alter the exit load structure in accordance with the regulations put forth by SEBI. In that case, the process is brought about by a set of rules.
First and foremost, a circular is made known by publishing it on a major English gazette and the foremost State newspaper, the State where the Head Office of the Mutual Fund is located.
Secondly, the concerned distributors shall be notified regarding the respective alterations proposed by the authorities. Then the changed structure of the exit load shall be stamped in the acknowledgement slip given to the concerned investors upon the resignation of the application form. The authorities may wish to further the procedure, if they so wish.
As mentioned earlier, it is important to keep in mind that the exit load structure is subject to the whims of the AMC. Generally speaking, the load structure is subject to modifications on a rather frequent basis. However, it is vital to underscore that any proposed amendment shall be applicable to imminent investment only. The exit load or the retrieval fee shall be credited to the scheme under Mirae Asset Mutual Fund
Exit Load and Redemption under Mirae Asset Mutual Fund
Indeed, it is vital to comprehend the recurrence of the word ‘redemption’ while discussing the knick knacks of the exit load structure. As stated repeatedly, the exit load, besides furnishing a degree of balance to the scheme, is essential investor oriented in that it allows one to avail of higher, more substantive investment goals.
So far as redemption is concerned, it is essentially directed towards the fulfillment of the policyholder’s particular investment objective. On the other hand, yet another aim of redemption is gross underperformance of a fund scheme. Exit loads come to play a significant role in the process of redemption or retrieval of schemes.
At the same time, it is significant to note that not all mutual funds charge an exit load. In fact, most equity funds which do impose a redemption fee tend to withhold it after a specified frame of time period. Additionally, it is equally important to underscore the fact that exit loads are applicable in the case of SIPs. Besides, direct investments also charge an exit load, although such investments are especially propitious in that they have a relatively low expense ratio.
So far as the expense ratio is concerned, it is crucial to keep in mind that it is essentially different from the exit load. Indeed, it may be said that the expense ratio, unlike the exit load, is the cardinal source of income for the AMC. Essentially, the exit load is deducted from the current NAV. The expense ratio consists of the net assets of the fund.