Mirae Asset Prudence Fund: New entrant makes a mark
Tue, Feb 21, 2017
Source : Yash Jashnani, Citrus Interactive

Mirae Asset Prudence Fund is an open ended equity-oriented balanced scheme. The investment objective of the Scheme is to generate capital appreciation along with current income from a combined portfolio of equity & equity related instruments and debt and money market instruments.

The fund has an AUM of Rs. 380 crore as on 31st January, 2017 which has increased by Rs. 201 crore compared to 31st January, 2016.



The fund’s performance across various time horizons is very good as seen in the table given below. It has beaten its benchmark throughout the time horizon in all time periods. It has done better than the category average in all time periods.

Scheme Name


6 Months

1 Year

Since Inception

Mirae Asset Prudence Fund





Crisil Balanced Fund - Aggressive Index





Category Average










Figures are in % as on 31st January 2017; Returns above 1 year in Compounded Annual Growth Rate (CAGR)

*The scheme was launched on 8th July 2015, hence the 3 year & 5 year period data is not available.

In terms of the calendar year returns the fund has beaten its benchmark as well as category average in 2016. 

Scheme Name


Mirae Asset Prudence Fund


 Crisil Balanced Fund - Aggressive Index


Category Average




All return figures in %

Risk: In terms of measures of risk such as standard deviation (measured over the last 3 years) the fund has taken lower risk compared to its category median and in terms of  beta (measured over the last 3 years), the fund has taken higher risk compared to the category median.


Standard Deviation


Mirae Asset Prudence Fund



Category Median



 Risk-Adjusted Return: In terms of Treynor & Sharpe Ratio (measured over the last 3 years) the fund has proved lower risk adjusted returns than the category median.




Mirae Asset Prudence Fund



Category Median



Portfolio Category:

Sector concentration: The fund’s concentration in the Top 3, 5 and 10 sectors is higher than the category median.


Top 3

Top 5

Top 10

Mirae Asset Prudence Fund




Category Median




Company concentration: The fund’s Concentration in the Top 3, 5 and 10 sectors companies is higher than the category median.



Top 3

Top 5

Top 10

Mirae Asset Prudence Fund




Category Median




Number of Equity Holdings: The Fund currently holds 41 stocks in its portfolio (31st January 2017), which is lower than the median stock count for the Balanced-Equity Oriented category, which currently stands at 52. In the last 5 years the number of equity holding averages to 38.           

Sector and Company Concentration signifies that the funds maintains a relatively concentrated portfolio.

Cash Equivalent:

Its cash equivalent for January 2017 was 5.61 per cent. The average cash allocation for the last five years is 6.93 per cent. Its maximum allocation to cash over the last two years is 9.34 percent in December 2016 and lowest was 0.62 percent in March 2016.

Portfolio Characteristics:

The Top 5 Sectors include Bank – Private, IT- Software, Refineries, Pharmaceuticals & Drugs and Engineering – Construction.

In the last 6 months the fund has bought stocks of Bajaj Auto Ltd., Bharat Financial Inclusion Ltd., Cera Sanitaryware Ltd., GAIL (India) Ltd., Grasim Industries Ltd., Indian Oil Corporation Ltd., PNB Housing Finance Ltd., Raymond Ltd. and Tata Motors Ltd.

Stocks of Bajaj Finance Ltd., Bharat Forge Ltd., Gateway Distriparks Ltd. and Mahanagar Gas Ltd. have been dropped from its portfolio and stocks of Kaveri Seed Company Ltd. have been bought and sold in the last 6 months.



In the equity portion, the fund would invest 65 – 80% of its assets in companies which are amongst the top 100 companies by market capitalization at the time of investment & 0-15% would be invested in companies which are not amongst the top 100 companies by market capitalization at the time of investment.         

The fund would invest 20-35% of its assets in Debt & Money market Instruments. 

This fund is positioned as a lower risk alternative to a pure equities scheme, while retaining some of the upside potential from equities exposure. For the equity portion, to the extent the fund invests in equity shares, the focus would be to build a diversified portfolio of strong growth companies. The fund manager may not have any bias towards particular theme or style in picking investment opportunities. However, the fund manager does have the flexibility to follow a focused approach on the investments.

The fund manager broadly analyses the macro economy, industry trends and business cycles. He will invest in companies that benefit from macroeconomic, industry and sectoral trends (Top down Theme Overlay) after doing bottom up analysis and due diligence, quality of management in terms of corporate governance and commitment to minority shareholders etc.


Fund Manager

Neelesh Surana

Mr. Surana is the Chief Investment Officer of Equity and Fund Manager at Mirae Asset Global Investments (India) Pvt. Ltd., and previously was the Head of Equity. Mr. Surana spearheads the equity research and investment function at the firm. He is also responsible for the managing the firm's existing equity funds and providing research support for its global mandate. Mr. Surana's secondary responsibilities at the firm include portfolio construction and monitoring. He joined the firm in 2008.

Mr. Surana previously served as a Senior Portfolio Manager at ASK Investment Managers Ltd. He was responsible for managing domestic and international portfolios at the firm. Mr. Surana was also responsible for tracking sectors like metals, fast moving consumer goods, and pharmaceuticals at the firm. He has extensive experience in equity research and portfolio management.  The other schemes managed by Mr. Surana are Mirae Asset India Opportunities Fund, Mirae Asset Tax Saver Fund & Mirae Asset Great Consumer Fund.

Mr. Surana holds an M.B.A. in Finance and a B.E. degree in Mechanical Engineering.


Yadnesh Chavan

Mr. Yadnesh Chavan serves as a Fund Manager of Fixed Income at Mirae Asset Global Investments (India) Pvt. Ltd. Mr. Chavan has extensive experience in fixed income dealing, portfolio regulatory and compliance, and management of debt portfolios. He serves as a Fund Manager of Fixed Income of various funds in the fund complex of Mirae Asset Mutual Fund.

He worked at Aviva Life Insurance Company India Ltd., where he assisted in management of debt portfolios and portfolio risk management. Prior to that, he was associated with the investment teams at ICICI Lombard General Insurance Co. Ltd. and Max New York Life Insurance Ltd. The other schemes managed by Mr. Chavan are Mirae Asset Ultra Short Term Fund, Mirae Asset Cash Management Fund & Mirae Asset Tax Saver Fund.

Mr. Chavan holds an MBA degree from Indian Institute of Planning and Management.


Our View

Mr Surana has a very strong track record in managing equity funds which adds to the credibility of the fund. In the little period of its existence the fund has beaten the category across all time periods. Mirae Asset Prudence Fund is a good option for moderate risk profiled investors – who wish to take lower risk than a pure equity fund.


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