Mirae Asset Great Consumer Fund: Built around the consumption theme, this fund has delivered strong returns over a period of 15 years. With a 25% return over five years, a monthly SIP investment of ₹10,000 could have grown to ₹63 lakh.
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Mirae Asset Great Consumer Fund: Rapidly growing consumption in India has emerged as a significant investment opportunity. Based on this very theme, Mirae Asset Mutual Fund has garnered considerable attention over the past few years by delivering stellar returns to investors. Launched approximately 15 years ago, this fund—managed by Mirae Asset Mutual Fund—has generated substantial profits for investors by capitalizing on the inherent strength of the consumption sector. Ultimately, the question arises: what exactly did this fund do to yield such significant benefits for its investors?
Fund Size and Performance
This fund has Assets Under Management (AUM) of approximately ₹4,500 crore. Furthermore, it has delivered an impressive performance over the past few years.
It has generated a CAGR return of approximately 25% over the last 5 years.
Since its inception in 2011, it has delivered a CAGR return of approximately 15.4% on SIP investments.
Had an investor started a monthly SIP of ₹10,000 right from the fund’s inception, their total accumulated wealth today would have grown to approximately ₹62.9 lakh.
Benefits on Lump-Sum Investments as Well
It is worth noting that this fund has delivered substantial returns not only to SIP investors but also to those who opted for lump-sum investments. Had an investor invested a lump sum of ₹10,000 at the very beginning, that amount would have grown to over ₹88,000 today. Based on this calculation, the fund’s CAGR stands at approximately 15.76%.
Where Does It Invest?
This fund invests in consumption-related sectors, such as:
- Consumer Durables
- Automobiles
- Retail
- Telecom
- FMCG
Its portfolio includes major companies like Mahindra & Mahindra, Maruti Suzuki, Titan Company, and Bharti Airtel.
What Is the Expert’s Advice?
According to Fund Manager Siddharth Chhabria, it is crucial to maintain a minimum investment horizon of five years when investing in such thematic funds. He believes that the consumer discretionary sector—comprising segments like jewelry, fashion, and retail—has the potential for rapid growth, delivering returns that are 1.5 to 2 times higher than the GDP growth rate.
A Positive Outlook on Quick Commerce and Digital Platforms
However, their stance regarding the FMCG sector is somewhat cautious, as margins in this space are currently at elevated levels and competition is intensifying. Within FMCG, they view the food category more favorably than personal care; conversely, their outlook on quick commerce and digital platforms is positive, as profitability within these sectors is gradually strengthening.
