Mirae Asset Large Cap Fund was earlier managed by Neelesh Surana and Harshad Borawake, but since January 2019, Gaurav Misra has taken the reins as the lead manager. Misra has more than two decades of experience, and his thought process and investment style are well-integrated with the fund’s strategy.
The investment philosophy of the fund is built on three core principles: quality businesses with stable earnings, strong management, and attractive valuation. The process includes both quantitative and qualitative stock screening with bottom-up stock-picking. The sector selection is done through top-down approach mainly based on growth prospects. Analysts then assess stocks at the industry and company levels and focus on key drivers such as returns on capital employed, returns on equity, and EBITDA margin. Within the framework, a lot of emphasis is on qualitative analysis like management quality and execution capabilities. These are quantified by evaluating the trailing 10-year track record, which helps in removing subjectivity. There is a further focus on valuation, which becomes a key driver behind entry and exit timing.
The strategy of the fund is to invest across sectors and themes. The fund has traditionally held a significant stake of around 80per cent in large size companies, focusing primarily on high-growth stocks. The portfolio typically holds 45-55 names, and, from a risk perspective, the volatility of the fund is reasonable.