Strategies for Maximizing Returns with the Mirae Asset Bluechip Fund

0
470
unsplash

The mirae asset emerging bluechip fund is one of the top-performing large-cap funds in India. With assets under management of over Rs 21,000 crore, this fund provides exposure to some of the best blue-chip companies in India. For investors looking to maximize returns from their investments in the Mirae Asset Tax Saver Fund, here are some strategies to consider:

. Have a Long-Term Horizon

Equity investments require a longer time horizon to realize their full potential. The Mirae Asset Emerging Bluechip Fund invests predominantly in large-cap stocks, which are best suited for investors with a long-term investment horizon. Stay invested for at least 5–7 years to benefit from the compounding effect and ride out short-term market volatility.

. Invest through SIPs

Systematic Investment Plans (SIPs) allow you to invest a fixed amount regularly in the Mirae Asset Tax Saver Fund. This averages out your purchase cost and negates the impact of market timing. SIPs instill discipline and force you to stay invested to meet your financial goals. Even small amounts invested regularly can grow into a substantial corpus over the long term.

. Reinvest Dividends

Choose the dividend reinvestment option when investing in the Mirae Asset Emerging Bluechip Fund. This results in compounding your returns as the dividends are invested back into the fund to purchase additional units. It accelerates wealth creation without any additional effort on your end.

. Stay Diversified

While the Mirae Asset Bluechip Fund itself invests in a diversified portfolio of equity shares, it is wise to diversify across fund categories as well. This balances out the risks and cushions your portfolio during market downturns. Maintain exposure to debt, gold, and international funds too for optimal diversification.

. Invest in surplus funds.

Use windfalls or any surplus funds to make lump-sum investments in the Mirae Asset Tax Saver Fund over and above SIPs. This enables you to accelerate your investments during market dips when the fund units can be purchased cheaply. A disciplined combination of SIP and lump-sum investments will enhance portfolio returns.

. Track Performance

While the Mirae Asset Emerging Bluechip Fund has a proven track record, it is important to monitor performance at regular intervals. Review the fund’s portfolio composition, check rolling returns over various periods, and compare with the category average and benchmarks. This helps ensure that the fund remains aligned with your goals. 

. Avoid Redemptions

Try to avoid redeeming your investments in the Mirae Asset Bluechip Fund to meet short-term needs. Redemptions make it difficult to benefit from compounding and the fund’s long-term growth potential. Use SWPs instead for your regular income needs. Alter SIP amounts or top up during surplus months to meet additional expenses.

. Use triggers for rebalancing.

Define pre-determined triggers to rebalance your allocation to the mirae asset tax saver fund. For instance, rebalance occurs if allocation increases by more than 10% of total portfolio value due to market movements. This ensures you don’t become overexposed to any single fund category.

The Mirae Asset Emerging Bluechip Fund provides a cost-effective avenue to participate in India’s growth story through bluechip stocks. Follow these strategies to maximize portfolio returns over the long run. Maintain discipline, diversify across categories, and utilize all available investing options. Do not get swayed by short-term volatility, and your investments will bear fruit. Equity investments are meant for long-term wealth creation, not short-term speculation. Adopt these strategies to grow your wealth steadily through the Mirae Asset Bluechip Fund. 5paisa offers zero brokerage plans to keep costs low.

 

LEAVE A REPLY

Please enter your comment!
Please enter your name here