It is that time in the markets when one needs to look at quality companies that have also performed well in recent quarters. This quality factor needs to encompass not just earnings growth but also the management and other key financial ratios. Among the largecap schemes, which have high focus on quality of companies, Mirae Asset India Opportunities has distinguished itself by performing consistently well by sticking to its investment mandate. The fund house focuses on two key principles: One, buying companies that have high return on capital employed and have generated consistent and incremental cashflows. Two, attractive valuations. These factors have played a crucial role in the scheme’s outperformance. In the past three-year and five-year periods, the scheme has given 13.5% and 22% returns respectively, while its benchmark BSE 200 has given 8% and 14% respectively over the same periods. In buying largesized companies, the scheme’s fund manager Neelesh Surana has been extremely careful about the valuations of the companies. The fund is being additionally managed by Harshad Borawake. The scheme’s fund managers have bought in companies, which reflect the value theme. A few prominent companies are Cochin Shipyard, Mahindra & Mahindra, and Marico.
