Best Mirae Asset Equity Mutual Funds

Mirae Asset is a subsidiary of South Korea's Mirae Asset Global Investments Co. Limited, an asset management company that provides financial solutions in over 40 countries. In its over 11 years of operation in India, this AMC has provided financial solutions to many investors and today manages assets worth over Rs. 70000 crores. 

Mirae Asset manages around 35 mutual fund portfolios. These come in multiple categories, including the best Mirae Asset equity mutual funds and hybrid, fixed income, ETF/FoF. 

An equity mutual fund, or a growth fund, invests mostly in stocks of listed companies. A mutual fund is classed as an equity fund in India if it has more than 65% of its assets invested in equity instruments. These generally provide aggressive returns, which can beat market growth and inflation but face high risks while doing so. 

Mirae Asset Mutual Funds offers over 8 equity funds across different market capitalisation and investment strategy categories. 

The best Mirae Asset equity mutual funds offer great returns as their investments are spread across various stocks. Typically, equity funds show better performance than hybrid or debt funds in the long run. They are also less risky than investing in stocks as they invest in a diversified portfolio of stocks across different sectors. Moreover, experienced fund managers manage equity funds and they ensure the best possible returns. 

These factors make them ideal for newer investors lacking in-depth knowledge about the equities market. Due to pooling together of resources, it takes only a small amount of capital to acquire shares of an equity fund. The best Mirae Asset equity mutual funds also invest some assets in debt instruments, making them popular choices for all sorts of risk profiles and investment objectives. 

An equity fund can be managed actively or passively, with actively managed funds usually carrying higher expenses. They can also be categorised based on market capitalisation into small-cap, mid-cap, large-cap, large and mid-cap and multi-cap funds. Large-cap stocks are usually a safer option but they provide moderate returns. Equity funds can also be classified based on investment strategies. Thematic/sectoral funds invest in specific market sectors/theme, while focused funds invest in a maximum of around 30 best stocks. 

Since equity funds carry a certain amount of risks, doing proper research before investing is always a good idea. The following pointers are essential to check to select the best Mirae Asset equity mutual fund.

Taxability

An important criterion of the top Mirae Asset equity mutual funds is their taxability.

Short-Term Capital Gains (STCG) Tax: This is applicable at the rate of 15% for a holding period of up to one year. 

Long-Term Capital Gains (LTCG) Tax: This is applicable for capital gains above Rs. 1 lakh and is taxed at the rate of 10%.

TDS: TDS @ 10% applies to dividends exceeding Rs.5000. 

Factors to Consider Before Investing

Besides taxability, you must also know about the following factors of equity funds before investment: 

Returns: The returns from an equity fund depend on the performance of the equities and equity-related assets. A more diversified portfolio reduces the negative effect of poorly performing stocks on the overall portfolio. 

Risk factors: Even the best Mirae Asset equity mutual funds carry more risks than hybrid or debt funds. An equity fund with assets well diversified in many sectors will carry fewer risks than sector-specific ones. The debt portion of an equity fund, including government securities, AAA-rated corporate bonds and money market instruments etc., also help to stabilise its performance. Thus, most investors consider large-cap funds as a safer and less volatile option. 

Investment horizon: Equity mutual funds perform better with a long-term goal (five years or more). A short-term fund will work well only for experienced investors who can account for market fluctuations.

Financial objectives: New investors prefer the best Mirae Asset equity mutual funds as equity mutual funds don't require in-depth knowledge to get started. 

Volatility: Even the best equity funds have higher volatility than hybrid or debt funds. A shift in benchmarks like Sensex or Nifty affects the performance of equity funds. Thus, experienced and market-savvy investors with a risk appetite and long-term commitment will find the best results. 

Costs: Since fund management plays a crucial role in managing investments, equity funds usually have a higher expense ratio. Actively managed funds usually carry the highest expenses, but they are usually not higher than 2.25% of the total assets.

An ELSS (Equity-Linked Savings Scheme) qualifies for tax deductions with an overall limit of Rs.1.5 lakh under Section 80C. 

It’s imperative to conduct sufficient research before investing in the best Mirae Asset equity mutual funds for 2023.