Mutual Funds: SIP Limit In Mirae Asset Emerging Bluechip Fund Rises By 10x To Rs 25,000 Per Month

One of the leading mutual fund houses, Mirae Asset MF has made provisions to its existing Systematic Investment Plan (SIPs) under Mirae Asset Emerging Bluechip Fund from time to time. Accordingly, the board of directors of the MF has decided to increase its SIP limit to Rs 25,000 per month from earlier Rs 2,500 per month in the Emerging Bluechip Fund. This would be a 10 times increase in the SIP limit.

The SIP limit of Rs 25,000 per month will come into effect from October 10, 2023.

Under its revised provision for Mirae's Bluechip Fund scheme, fresh registration through SIP shall be allowed for a maximum of up to Rs 25,000/- through Monthly frequency cumulatively aggregated across all available SIP Dates of each month before the cut-off time of 15:00 hours on any business day.

However, SIP shall not be available through Quarterly frequency under the scheme and remains suspended.

Mirae said that the limit of Rs 25,000 through SIP route (monthly frequency) shall be aggregated and applicable at the primary holder PAN level for each new application received.

Thereby, it said, all applications made differently in the name of the minor and also in the name of the guardian under the same PAN will be considered as applications submitted under the same PAN, for aggregation and the said threshold will be applicable collectively.

Mirae Asset Emerging Bluechip Fund is an open-ended equity scheme investing in both large-cap and mid-cap stocks.

Under its investment strategy, the fund invests 35-65% in large-cap companies (top 100 companies by market capitalization) & 35-65% in mid-cap companies (companies not part of the top 100 companies but fall within the top 250 companies by market capitalization). Also, the fund gives investors the opportunity to participate in the growth of emerging companies which have the potential to be tomorrow's blue-chip companies.

The approach for investment is bottoms up, driven by value investing, in growth-oriented businesses. The investment approach is aimed at participating in high-quality businesses up to a reasonable price and holding the same over an extended period of time.

On its website, Mirae's explain that SIP investment or systematic Investment Plan is a facility to invest in mutual funds where you can invest relatively small amounts at regular intervals. Through SIP investment you can invest a fixed amount in any open ended mutual fund scheme of your choice at intervals chosen by you (e.g. daily, weekly, fortnightly, monthly etc.). SIP plans are preferred by investors because they can start investing in mutual funds with relatively small amounts. Since the amounts invested are relatively smaller than lumpsum investments, the risk in SIP mutual fund is also relatively lower.