Mirae Asset Mutual Fund. Annual Report

Transcription

1 Mutual Fund Annual Report - 18

2 Mutual Fund Annual Report -18 Board of Directors Trustee Company Private Limited Mr. V. B. Haribhakti Chairman Mr. S. T. Gerela Director (Independent) Mr. K. Ramasubramanian Director (Independent) Mr. M. L. Soneji Director (Independent) Asset Company: Global Investments (India) Private Limited ( the AMC ) Registered & Corporate Office: Unit No. 606, Windsor Building, Off. C.S.T. Road, Kalina, Santacruz (East), Mumbai CIN: U65993MH2006FTC Global Investments (India) Private Limited Mr. Yogesh Chadha Director (Independent) Mr. Ananth Narayan Additional Director (Independent) Gopalakrishnan w.e.f May 29, 2018 Mr. Swarup Mohanty Mr. Junyoung Hong Director & CEO (Associate) Director (Associate) *Mr. B. N. Chakraborty ceased to be an Independent Director w.e.f February 21, Custodian: M/s. Deutsche Bank AG Block 1, Nirlon Knowledge Park, Off Western Express Highway, Goregaon (East), Mumbai , India. Statutory Auditor: M/s. Chokshi & Chokshi LLP 15/17, Raghavji B Bldg., Gowalia Tank, Off. Kemps Corner, Mumbai Sponsor: Global Investments Company Limited Registered office: 13F, Tower 1, 33, Jong-ro, Jongno-gu, Seoul Republic of Korea Registrar & Transfer Agent: Karvy Computershare Private Limited Karvy Selenium, Tower-B, Plot No. 31 & 32, Financial District, Nankramguda, Serilingampally Mandal, Ranga Reddy District, Hyderabad , India. Trustee: Trustee Company Private Limited Registered Office: Unit No.606, Windsor Building, Off. C.S.T. Road, Kalina, Santacruz (East), Mumbai CIN: U65191MH2007FTC THE AMC BRANCH OFFICES: OFFICIAL POINT OF Acceptance OF TRANSACTIONS (OPAT): Ahmedabad - 201, 2 nd Floor, Abhijeet-I, Mithakhali Circle, Near HDFC Bank, Ahmedabad Tel Bangalore - Unit Nos. 308, 2nd Floor, Prestige Meridian-II, No.30, M.G. Road, Bangalore Tel Chandigarh - SCO , F. F. Sector 35-B, Chandigarh Tel / Chennai - Premises No. 206, Challa Mall, 11-11A, Sir Theyagaraya Road, T. Nagar, Chennai Tel Jaipur-322, Ganpati Plaza, M I Road, Jaipur Tel: Kanpur - 1 st Floor, Shop No.111, KAN Chambers, 14/113, Civil Lines, Kanpur, Uttar Pradesh Tel Kolkata-Krishna Building, Room No.510, 5 th Floor, 224 A J C Bose Road, Beck Bagan Junction, Kolkata Tel Mumbai (Corporate Office) - Unit No. 606, 6 th Floor, Windsor Bldg., Off. CST Road, Kalina, Santacruz (E), Mumbai Tel New Delhi-Office No.1010, 10 th Floor, Indraprakash Building, 21 Barakhamaba Road, Connaught Place, New Delhi Tel Pune-74, 4 th Floor, Sreenath Plaza, Dnyaneshwar Paduka Chowk, F C Road, Shivaji Nagar, Pune Tel Secunderabad - No. 208, Legend Crystal Building, 2nd Floor, P.G. Road, Secunderabad NON OPAT BRANCHES: Lucknow - Office No. 308, 3rd Floor, Saran Chamber-II, 5, Park Road, Lucknow Bhubaneswar - Office No. 202, 2nd Floor, Janpath Tower, Ashok Nagar, Bhubaneswar Tel

3 Dear Investor, Mutual Fund completed a very important milestone this year, as it completed 10 years of fund management in India. The AMC has now established a stronger foothold in the Indian Mutual Fund Industry and is one of the fastest growing AMCs in India based on the rate of AUM growth and the Industry participants are recognizing the same. I am happy to share that your AMC s AUM has crossed the important threshold of INR 20,000 crores (on 9th July 2018) a growth of close to 100% (AUM was Rs.10, crores July ). The journey over the last 5 years has been even more impressive with 40 times growth in AUM (AUM was ~Rs. 500 crores on 31st July, 2013). In the financial year -2018, your AMC launched 1 debt fund Short Term Fund and collected Rs. 100 crores in the NFO. This will help enhance the fixed income offering and provide investors a suitable product to ride the interest rate volatility. Your AMC also launched Healthcare Fund in June 2018, and collected Rs.182 crores in the NFO with more than 15,000 investor folios. We will keep enhancing the product offering with more products this financial year. Your AMC had also changed the fundamental attributes of Great Consumer Fund, Mirae Asset Emerging Bluechip Fund, Prudence Fund (currently known as Hybrid Equity Fund) and Savings Fund, based on the latest SEBI categorization. In an important decision your AMC stopped further SIP subscription for Emerging Bluechip Fund to only 1 day (10th of every month) and capped at Rs. 25,000 per investor, to protect the interest of existing investors. We are happy to share that your AMC has witnessed a significant surge in the number of new clients with the investor folios crossing 10,00,000 (with close to 5,00,000 SIP investors). The SIP flows have also grown significantly. Thus have grown from Rs. 29 crores in March 2016 to Rs. 115 crores in May and now stands at a monthly inflows in excess of Rs. 250 crores in May This shows our growing trust amongst our investors. We are committed to follow the Core Value of Client First. The fund house continues its endeavor to generate risk adjusted performance for its investors and also declare dividends under its various equity schemes. We have enhanced our online transaction through the website to make it user friendly and provide ease of navigation. We are now offering Online SIP registration (through I-SIP), E-KYC from which first time investors can also transact in Mutual Funds. First time Investors can also transact online on our website. Investors can update their contact details, check unclaimed dividend and redemption status. We continue to update our investors on our funds, markets and important events through the website and s and also share insightful articles on investor education through our Knowledge Academy. We also started DIT, through which distributors can initiate transactions on behalf of the investors. This we believe will help us expand our distributor and investor base across the country. We have also expanded our overseas business and the AUM of funds advised by is now in excess of USD 1 billion. The offshore business provides an alternate source of business for the AMC. has also set up a Category II AIF (Alternate Investment Fund) which will provide credit to residential real estate sector. Our goal in the long term is to become one of the major players in the Indian Mutual Fund Industry with a complete product basket across asset classes and deliver risk adjusted returns to our investors. We would like to thank you for investing in our funds and wish you very happy investing in the future. Thanking you, Swarup Mohanty CEO - Global Investments (India) Pvt. 3

4 TRUSTEE REPORT OF MIRAE ASSET MUTUAL FUND FOR THE YEAR ENDED MARCH 31, 2018 Dear Unit holder, The Trustee Company presents its Eleventh report and the audited financial statements of the Schemes of Mutual Fund (the Fund ), for the year ended March 31, MIRAE ASSET MUTUAL FUND Mutual Fund completed a very important milestone this year, as it completed 10 years of fund management in India. The AMC has now established a stronger foothold in the Indian Mutual Fund Industry and is one of the fastest growing AMCs in India based on the rate of AUM growth. The AMC s AUM has crossed the important threshold of INR 20,000 crores (on 9th July 2018) a growth of close to 100% (since last July ). The journey over the last 5 years has been even more impressive with 40 times growth in AUM (AUM was ~Rs. 500 crores on 31st July, 2013). We are happy to share that your AMC has witnessed a significant surge in the number of new clients with the investor folios crossing 10,00,000 (with close to 5,00,000 SIP investors). The SIP flows have also grown significantly and have been growing from Rs. 29 crores in March 2016 to monthly inflows in excess of Rs. 250 crores in May This shows we are getting trust of our investors. In the financial year -2018, your AMC launched 1 debt fund: Short Term Fund and also launched Healthcare Fund, an open ended equity scheme investing in healthcare and allied sectors in June As on date, the AMC managed 10 schemes of Mutual Fund. The break-up of the schemes are 6 open-ended equity schemes including 1 ELSS & 4 open-ended liquid/ debt schemes. We have enhanced our online transaction through the website to make it user friendly and provide ease of navigation. We are now offering Online SIP registration (through I-SIP), E-KYC from which first time investors can also transact in Mutual Funds. Investors can update their contact details, check unclaimed dividend and redemption status. We continue to update our investors on our funds, markets and important events through the website and s and also share insightful articles on investor education through our Knowledge Academy. We also started DIT, through which distributors can initiate transactions on behalf of the investors. This we believe will help us expand our distributor and investor base across the country. Our goal in the long term is to become one of major players in the Indian Mutual Fund Industry with a complete product basket across asset classes and deliver risk adjusted returns to our investors. Scheme Performance, Future Outlook and Operations of the Schemes 1. PERFORMANCE AND OPERATIONS OF THE SCHEMES. (I) India Equity Fund (MAIEF), Multi Cap Fund - An open-ended equity scheme investing across large cap, mid cap, small cap stocks The performance of India Equity Fund (erstwhile known as India Opportunities Fund as on March 31, 2018 is as follows:- Particulars Regular Plan Growth option Direct Plan Growth option Compounded Annualised Growth Returns (CAGR) Scheme returns (%) S&P BSE 200 Scheme returns (%) S&P BSE 200 Since Inception 16.21% 10.41% 18.83% 13.43% Last 1 year 12.34% 12.49% 13.13% 12.49% Last 3 years 11.39% 9.29% 12.24% 9.29% Last 5 years 20.66% 15.78% 21.68% 15.78% NAV as on 31/03/ Since Inception date of the Scheme: April 04, 2008; Direct Plan was introduce on January 01, 2013 Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. The returns shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception. For Regular Plan Growth Option and Direct Plan Growth Option, the Scheme has outperformed the benchmark returns over 1 year, 3 years, 5 years and since inception returns (except for Last 1 year for Regular Plan). The Scheme had slightly underperformed its benchmark on 1 year basis majorly due to underperformance in select stocks of the portfolio in Textiles and Construction sectors. Also, the performance over 5 years and since inception continues to be healthy. The details of the NAV and dividend declared by the fund during the financial year -18 are as follows: Scheme Description NAV per unit (Rs.) Dividend Per Unit (Rs.) March 31, 2018 INDIVIDUAL NON INDIVIDUAL India Equity Fund - Regular - Dividend Plan India Equity Fund - Regular - Growth Plan NA NA India Equity Fund - Direct - Dividend Plan NIL NIL India Equity Fund - Direct - Growth Plan NA NA NA Not Applicable The Scheme aims to maximize the long term capital appreciation by finding investment opportunities resulting from Indian economic growth and its structural shifts through investing in equities, equities related securities with risk mitigating and controlling measures. The net assets of India Equity Fund stood at Rs. 6, crores as at March 31, 2018 as against Rs. 3, crores as at March 31, and out of the total net assets as on March 31, 2018, % was invested in equity shares and balance in CBLO and Others. The Scheme has flexibility to invest between 65% to 100% of its net asset in Indian Equities and Equity Related Securities and upto 35% of its net assets in Money market instruments/debt securities Instruments (Including upto 25% of corpus in securitized debt). The exact mix of equity and debt is a function of equity market valuation and outlook, interest rates and the outlook for the same. The scheme can invest upto 50% of Net Assets of Scheme into equity derivatives instruments. 4

5 (ii) EMERGING BLUECHIP Fund (MAEBF), Large & Mid Cap Fund - An open ended equity scheme investing in both large cap and mid cap stocks The performance of Emerging Bluechip Fund as on March 31, 2018 is as follows:- Particulars Regular Plan Growth option Direct Plan Growth option Compounded Annualised Growth Returns (CAGR) Scheme returns (%) Nifty Free Float Midcap 100 Scheme returns (%) Nifty Free Float Midcap 100 Since Inception 22.36% 12.53% 27.24% 16.58% Last 1 year 11.69% 14.61% 12.50% 14.61% Last 3 years 17.57% 12.52% 18.53% 12.52% Last 5 years 30.24% 19.78% 31.42% 19.78% NAV as on 31/03/ Since Inception date of the Scheme: July 09, 2010; Direct Plan was introduce on January 01, 2013 Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. The returns shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception. For Regular Plan Growth Option and Direct Plan Growth Option, the Scheme has always outperformed the benchmark returns over 3 years, 5 years and since inception returns. The Scheme had underperformed its benchmark on 1 year basis majorly due to underperformance in select stocks of the portfolio in Chemicals, Services, Auto and Pharmaceuticals Sector. However, the performance since inception continues to be healthy. The details of the NAV and dividend declared by the fund during the financial year -18 are as follows: Scheme Description NAV per unit (Rs.) Dividend Per Unit (Rs.) March 31, 2018 INDIVIDUAL NON INDIVIDUAL Emerging Bluechip Fund - Regular - Dividend Option Emerging Bluechip Fund - Regular - Growth Option NA NA Emerging Bluechip Fund - Direct - Dividend Option NIL NIL Emerging Bluechip Fund - Direct - Growth Option NA NA NA Not Applicable The investment objective of the scheme is to generate income and capital appreciation from a portfolio primarily investing in Indian equities and equity related securities of large cap and mid cap companies at the time of investment. From time to time, the fund manager may also seek participation in other Indian equity and equity related securities to achieve optimal Portfolio construction. The Scheme does not guarantee or assure any returns. The net assets of Emerging Bluechip Fund stood at Rs. 5, Crores as at March 31, 2018 as against Rs. 3, Crores as at March 31, and out of the total net assets as on March 31, 2018, 98.11% of the net assets were invested in equity shares, 0.09% in MF Units and balance in CBLO and others. The Scheme has flexibility to invest between 35% to 65% of its net asset in Indian Equities and Equity Related Securities of companies which are part of the top 100 stocks by market capitalization and 35% to 65% of its net assets into Indian Equities and Equity Related Securities of Mid cap companies which are not part of the Top100 stocks but fall within Top 250 stocks by market capitalization at the time of investment and rest upto 30% into Other Indian Equities and Equity Related Securities/ Money market instruments (including CBLO)/debt securities Instruments. The exact mix of equity and debt is a function of equity market valuation and outlook, interest rates and the outlook for the same. (III) Hybrid equity Fund (MAhef), Aggressive Hybrid Fund - An open-ended hybrid scheme investing predominantly in equity and equity related instruments The performance of Hybrid Equity Fund (erstwhile known as Prudence Fund) as on March 31, 2018 is as follows:- Particulars Regular Plan Growth option Direct Plan Growth option Compounded Annualised Growth Returns (CAGR) Scheme returns (%) CRISIL Balanced Fund Index Scheme returns (%) CRISIL Balanced Fund Index Since Inception 10.75% 9.90% 12.77% 9.90% Last 1 year 9.15% 9.96% 11.08% 9.96% NAV as on 31/03/ Since Inception date of the Scheme: July 29, 2015 Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. The returns shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception. For Regular Plan Growth Option and Direct Plan Growth Option, the Scheme has outperformed the benchmark since inception. The Scheme has underperformed its benchmark in 1 year period (Regular option) majorly due to underperformance in select stocks of the portfolio in the sectors of Petroleum Products, Pharmaceuticals and Services. The details of the NAV and dividend declared by the fund during the financial year -18 are as follows: Scheme Description NAV per unit (Rs.) Dividend Per Unit (Rs.) March 31, 2018 INDIVIDUAL NON INDIVIDUAL Hybrid Equity Fund - Regular - Dividend Option Hybrid Equity Fund - Regular - Growth Option NA NA Hybrid Equity Fund - Direct - Dividend Option Hybrid Equity Fund - Direct - Growth Option NA NA NA Not Applicable. 5

6 The investment objective of the Scheme is to generate capital appreciation along with current income from a combined portfolio of predominantly investing in equity & equity related instruments and balance in debt and money market instruments. The Scheme does not guarantee or assure any returns. The net assets of Hybrid Equity Fund stood at Rs. 1, Crores as at March 31, 2018 as against Rs Crores as at March 31, and out of the total net assets as on March 31, 2018, % was invested in equity shares, 26.01% in Debt and Money market instruments and balance in CBLO. The Scheme has flexibility to invest between 65% to 80% of its net asset in Equities and Equity Related Securities and 20%-35% shall be invested in Debt & Money Market Instruments. The exact mix of equity and debt is a function of equity market valuation and outlook, interest rates and the outlook for the same. (IV) TAX SAVER Fund (MATSF), ELSS - An open ended equity linked saving scheme with a statutory lock in of 3 years and tax benefit. The performance of Tax Saver Fund as on March 31, 2018 is as follows:- Particulars Regular Plan Growth option Direct Plan Growth option Compounded Annualised Growth Returns (CAGR) Scheme returns (%) S&P BSE 200 Scheme returns (%) S&P BSE 200 Since Inception 21.90% 14.57% 23.40% 14.45% Last 1 year 16.14% 12.49% 17.53% 12.49% NAV as on 31/03/ Since Inception date of the Scheme: December 28, 2015 Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. The returns shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception. For Regular Plan Growth Option and Direct Plan Growth Option, the Scheme has outperformed the benchmark returns since inception as well as in the last one year. The Scheme had outperformed its benchmark on majorly due to better Stock picking in Cement, Auto and Consumer Non Durables sectors. The details of the NAV and dividend declared by the fund during the financial year -18 are as follows: Scheme Description NAV per unit (Rs.) March 31, 2018 Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL Tax Saver Fund - Regular Plan - Growth Option NA NA Tax Saver Fund - Regular Plan - Dividend Option Tax Saver Fund - Direct Plan - Dividend Option Tax Saver Fund - Direct Plan - Growth Option NA NA NA Not Applicable The investment objective of the scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments. The Scheme does not guarantee or assure any returns. The net assets of Tax Saver Fund stood at Rs Crores as on March 31, 2018 as against Rs Crores as at March 31, and out of the total net assets as on March 31, 2018, % was invested in equity shares and balance in CBLO and others. The Scheme has flexibility to invest between 80% to 100% of its net asset in Equities and Equity Related Securities and upto 20% of its net assets in Debt Instruments, Money Market Instruments, G-Secs, Cash, CBLO, Reverse Repo, etc. The exact mix of equity and debt is a function of equity market valuation and outlook, interest rates and the outlook for the same. (V) Great Consumer Fund (MAGCF), Sectoral/Thematic Fund - An open ended equity scheme following consumption theme The performance of Great Consumer Fund as on March 31, 2018 is as follows:- Particulars Regular Plan Growth option Direct Plan Growth option Compounded Annualised Growth Returns (CAGR) Scheme returns (%) S&P BSE 200 Scheme returns (%) S&P BSE 200 Since Inception 17.91% 11.16% 18.97% 13.43% Last 1 year 23.77% 12.49% 25.39% 12.49% Last 3 years 12.34% 9.29% 13.83% 9.29% Last 5 years 20.76% 15.78% 22.26% 15.78% NAV as on 31/03/ Inception date of the Scheme: March 29, 2011; Direct Plan was introduce on January 01, 2013 Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. The returns shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.10/- invested at inception. For Regular Plan Growth Option and Direct Plan Growth Option, the Scheme has outperformed the benchmark returns over 1 year, 3 years, 5 years and since inception returns. The out-performance is majorly due to Stock Selection in non durables. 6

7 The details of the NAV and dividend declared by the fund during the financial year -18 are as follows: Scheme Description NAV per unit (Rs.) March 31, 2018 Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL Great Consumer Fund- Regular - Dividend Option Great Consumer Fund- Regular - Growth Option NA NA Great Consumer Fund- Direct - Dividend Option Great Consumer Fund- Direct - Growth Option NA NA NA Not Applicable The investment objective of the scheme is to generate long term capital appreciation by investing in a portfolio of companies/funds that are likely to benefit either directly or indirectly from consumption led demand in India. The Scheme does not guarantee or assure any returns. The net assets of Great Consumer Fund stood at Rs Crores as at March 31, 2018 as against Rs Crores as at March 31, and out of the total net assets as on March 31, 2018, 92.81% of the net assets were invested in equity shares and balance in CBLO and others. The Scheme has flexibility to invest between 80% to 100% of its net asset in Indian Equities and Equity Related Securities of companies that are likely to benefit either directly or indirectly from consumption led demand and upto 20% of its net asset in Money market instruments (including CBLO)/debt securities Instruments and/or units of debt/liquid schemes of domestic Mutual Funds. The exact mix of equity and debt is a function of equity market valuation and outlook, interest rates and the outlook for the same. (VI) MIRAE ASSET CASH MANAGEMENT FUND (MACMF), Liquid Fund - An open ended liquid scheme The performance of Cash Fund as on March 31, 2018 is as follows:- Particulars Regular Plan Growth option Direct Plan Growth option Compounded Annualised Growth Returns (CAGR) Scheme returns (%) CRISIL Liquid Fund Index Scheme returns (%) CRISIL Liquid Fund Index Since Inception 6.68% 7.45% 7.85% 8.09% Last 1 year 6.68% 6.84% 6.78% 6.84% Last 3 years 7.07% 7.34% 7.29% 7.34% Last 5 years 7.67% 8.09% 7.88% 8.09% NAV as on 31/03/ Since Inception date of the Scheme: January 12, 2009; Direct Plan was introduce on January 01, 2013 Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. The returns shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.1000/- invested at inception. For Regular Plan Growth Option and Direct Plan Growth Option, the Scheme has marginally underperformed the benchmark over 1 year, 3 years, 5 years and since inception returns. The Scheme underperformed its benchmark due to Underweight on high yielding Commercial Papers and Overweight on Certificate of Deposits, however the fund s credit quality is better than the benchmark. The scheme is meant for investors to deploy their funds for a short period of time. The intention is to offer superior returns at lower level of risk while maintaining the liquidity profile. The details of the NAV and dividend declared by the fund during the financial year -18 are as follows: Scheme Description NAV per unit (Rs.) March 31, 2018 Dividend Per Unit (Rs.) INDIVIDUAL NON INDIVIDUAL Cash Fund - Regular - Daily Dividend Plan Cash Fund - Regular - Weekly Dividend Plan Cash Fund - Regular - Monthly Dividend Cash Fund - Regular - Growth NA NA Cash Fund - Direct - Daily Dividend Cash Fund - Direct - Growth NA NA Cash Fund - Direct - Weekly Dividend Cash Fund - Direct - Direct Monthly Dividend The investment objective of the scheme is to generate consistent returns with a high level of liquidity in a judicious portfolio mix comprising of money market and debt instruments. The Scheme does not guarantee any returns. The net assets of Cash Fund stood at Rs. 2, crores as at March 31, 2018 as against Rs crores as at March 31, and out of the total net assets as on March 31, 2018, % of the net assets were invested in money market instruments and balance in CBLO and others. The Scheme has flexibility to invest of its net asset in Money Market Instruments and Debt Instruments with residual maturity up to 91 days. (VII) MIRAE ASSET SAVINGS FUND (MASF), Low Duration Fund - An Open ended low duration Debt Scheme investing in instruments with Macaulay duration of the portfolio between 6 months and 12 months (please refer to page no. 20 of SID) 7

8 The performance of Savings Fund as on March 31, 2018 is as follows:- Particulars Regular Plan Growth option Direct Plan Growth option Compounded Annualised Growth Returns (CAGR) Scheme returns (%) CRISIL Liquid Fund Index Scheme returns (%) CRISIL Liquid Fund Index Since Inception 7.26% 8.08% 7.90% 8.09% Last 1 year 5.81% 6.79% 6.59% 6.79% Last 3 years 6.48% 7.32% 7.32% 7.32% NAV as on 31/03/ Since Inception date of the Scheme: March 05, 2008; Direct Plan was introduce on January 01, 2013 Past performance may or may not be sustained in future. The calculations of returns shall assume reinvestment of all payouts at the then prevailing NAV. The returns shown above are compounded annualised growth returns (CAGR) and are calculated on Rs.1000/- invested at inception. For Regular Plan Growth Option and Direct Plan Growth Option, the Scheme has marginally underperformed the benchmark over 1 year, 3 years, 5 years and since inception returns. The Scheme underperformed its benchmark in the 1 year period as it had lower average maturity and due to Underweight on high yielding debt papers, however the fund s credit quality is better than the benchmark. The investment objective of the scheme is to seek to generate returns with a portfolio comprising of debt and money market instruments, such that Macaulay duration of the portfolio is between 6 months 12 months. The Scheme does not guarantee any returns. The details of the NAV and dividend declared by the fund during the financial year -18 are as follows: Scheme Description NAV per unit (Rs.) March 31, 2018 INDIVIDUAL Dividend Per Unit(Rs.) NON INDIVIDUAL Savings Fund - Regular Savings - Growth Option NA NA Savings Fund - Regular Savings - Dividend Plan (Quarterly) Savings Fund - Regular Savings - Monthly Dividend Savings Fund - Regular Savings - Weekly Dividend Savings Fund - Regular Savings - Daily Dividend Savings Fund - Direct - Growth NA NA Savings Fund - Direct - Quarterly Dividend Savings Fund - Direct - Daily Dividend Savings Fund - Direct - Weekly Dividend Savings Fund - Direct - Monthly Dividend The net assets of Savings Fund stood at Rs Crores as at March 31, 2018 as against Rs Crores as at March 31, and out of the total net assets as on March 31, 2018, 68.39% of the net assets were invested in Debt Securities and balance in CBLO and others. The Scheme has flexibility to invest upto 100% of its net asset in Money Market Instruments and Debt Instruments such that the Macaulay duration of the portfolio is between 6 months and 12m months. (VIII) MIRAE ASSET DYNAMIC BOND FUND (MADBF), Dynamic Bond Fund - An Open-ended dynamic debt scheme investing across duration Dynamic Bond Fund (MADBF), an open-ended income scheme, was launched by the AMC on March 24,. Particulars Regular Plan Growth option Direct Plan Growth option Compounded Annualised Growth Returns (CAGR) Scheme returns (%) CRISIL Composite Bond Fund Index Scheme returns (%) CRISIL Composite Bond Fund Index Since Inception 3.38% 5.60% 4.35% 5.60% Last 1 year 2.78% 5.06% 4.34% 5.06% NAV as on 31/03/ The objective of the Scheme is to generate optimal returns through active management of a portfolio of debt and money market instruments. However, there is no assurance that the investment objective of the Scheme will be realized and the Scheme does not assure or guarantee any returns. The Scheme has underperformed the benchmark for the past 1 year and since inception primarily due to unfavorable yield curve change movement. The details of the NAV and dividend declared by the fund during the financial year -18 are as follows: Scheme Description NAV per unit (Rs.) March 31, 2018 INDIVIDUAL Dividend Per Unit (Rs.) NON INDIVIDUAL Dynamic Bond Fund - Regular Plan - Growth Option NIL NIL Dynamic Bond Fund - Regular Plan - Dividend Option NIL NIL Dynamic Bond Fund - Direct Plan - Dividend Option NIL NIL Dynamic Bond Fund - Direct Plan - Growth Option NIL NIL The net assets of Dynamic Bond Fund stood at Rs Crores as at March 31, 2018 as against Rs Crores as at March 31, and out of the total net assets as on March 31, 2018, % of the net assets were invested in money market instruments, Bond and CBLO. The Scheme has flexibility to invest between 0% to 100% of its net asset in Money Market Instruments and Debt Instruments. 8

9 (IX) MIRAE ASSET SHORT TERM FUND (MASTF)*, Short Duration Fund - An open ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years (please refer to page no. 24 of SID) Short Term Fund (MASTF), Short Duration Fund - An open ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years (please refer to page no. 24 of SID) was re-opened for sale & re-purchase by the AMC on March 19, (X) MIRAE ASSET HEALTHCARE FUND (MAHF)*, an open ended equity scheme investing in healthcare and allied sectors. Healthcare Fund, An open ended equity scheme investing in healthcare and allied sectors was re-opened for sale & re-purchase by the AMC on July 03, *Since the Schemes have not completed one year, performance of the Schemes are not given. 2. FUTURE OUTLOOK The Mutual Fund Industry has seen robust AUM growth over the last 3 years. Average Assets Under (AAUM) of Indian Mutual Fund Industry for the month of June 2018 stood at Rs lakh crores from lakh crore in June. In the last decade, the AUM of the Indian MF Industry has grown 7 times. The growth over the last 2 years has been great due to robust SIP inflows. The Indian Mutual Funds have currently about 2.23 crore (22.3 million) SIP accounts through which investors regularly invest in Indian Mutual Fund schemes. AMFI data shows that the MF industry had added about 9.58 lacs SIP accounts each month on an average during the FY , with an average SIP size of about Rs. 3,275 per SIP account. The monthly SIP inflows are currently standing at Rs. 7,300 crores (as on May 2018). The corresponding numbers were 1.40 crore (14 million) SIP accounts with monthly inflows of Rs. 4,584 crores in May. AMFI has been carrying out a massive investor education campaign called Mutual Fund Sahi Hai, which has caused huge visibility for Mutual Fund as a preferred investment product. The AMC has witnessed a significant surge in the number of new clients with the investor folios crossing 10,00,000 (with close to 5,00,000 SIP investors). The SIP flows have also grown significantly and have been growing from Rs. 29 crores in March 2016 to in excess of Rs. 250 crores in May A large no of investors have been invested with the AMC, through various digital platforms, including the AMC website. The AMC will be enhancing online transaction website to make it user friendly and provide ease of navigation for both investors and partners. Mutual Fund is working on leveraging its global presence to raise funds from foreign investors in Schemes and for providing advisory services. With our domestic funds exhibiting robust performance track record, Mutual Fund is trying to get institutional mandates as well. AUM of funds advised by is now in excess of USD 1 billion and provides, an alternate source of business for the AMC. has also set up an AIF (Alternate Investment Fund) which will provide credit to residential real estate sector. Our goal in the long term is to become one of major players in the Indian Mutual Fund Industry with a complete product basket across asset classes and deliver risk adjusted returns to our investors. On the distribution front too, India has taken steps and has tied-up with some of the best names in the distribution domain. The fund house has ensured a prudent mix of distribution partners from IFAs (currently around 10,000 + IFA distributors empaneled), Banks and National distributors. This has ensured that the distribution model is de-risked as well as equipped to take advantages of market opportunities. Both the flagship funds have achieved important AUM milestones, which will make them qualified to be sold by many leading banks and wealth outfits, which may help in faster AUM growth in the next financial year. OPERATIONS AND INVESTOR SERVICES Mutual Fund (MAMF) as at March 31, 2018 offered 9 Schemes. These include 5 Equity Schemes (including 1 Equity Linked Savings Schemes), 1 Liquid Scheme and 3 Debt Schemes across 49 NAVs. The total assets under management across all these Schemes as on March 31, 2018 was Rs. 17, Crores. The AMC operates out of 14 branches, including Mumbai as the Head office. Increased use of technology coupled with optimum allocation and simplicity has helped us to enhance operational efficiency at MAMF. During the year, SEBI has introduced significant changes to the MF regulations which had an impact on the industry as a whole, where MAMF aligned its processes, wherever required, to remain compliant with the said regulations at all times. In our continuous effort and endeavor to strengthen services and to increase the overall seamless experience of both our Investor and Distributor fraternity, we have in this financial year engaged with a competitive service provider outsourcing the toll free service, which was earlier hosted in-house. This we believe will aid quality timely responses and increase the efficiency of the turnaround times for query resolution. While we have always been innovating things on our website, in terms of navigation and ease of content fetching, we have also started the Distributor Initiated Transactions (DIT) services, which we understand will help increase the overall transaction experience of our Investors and Distributors. On the other hand, we have also roped in MF Utilities transaction platform for the convenience of our Investor fraternity. We have also started Goal Based SIPs for our Investor fraternity, helping them to sync their objective with their tenure and convenience. At the same time, we are also working on numerous initiatives which will increase our communication with investors and provide them a conducive environment on the ease of accessibility. In terms of knowledge sharing we have been arranging Investor Awareness Programs through our partners in all our cities or presence. As part of the program, we release investor booklets, contribute articles in financial websites and national publications to explain financial terms in a simple language and also share related newsletters and mailers to our investors on key financial terms, every week. 3. BRIEF BACKGROUND OF THE TRUST, SPONSORS, TRUSTEE AND ASSET MANAGEMENT COMPANY i. Sponsors: Mutual Fund is sponsored by Global Investments Co. Limited, a company incorporated in South Korea. Global Investments Company Limited (MAGICL) is a part of Financial Group (). was established in 1997 and is South Korea s leading independent financial services provider. With Asset as its core activity, is engaged in a broad range of financial services including Investment Banking, Wealth and Life Insurance. Other significant activities of the group include Alternate Investment including Private Equity, Venture Capital and Real Estate. introduced the concept of mutual funds to Korea. It is the largest asset manager in Korea and is the pioneer of Systematic Investment Plan (known as Regular Savings Plan) in Korea and over the years has emerged as the undisputed leader in Korea. Korea s largest equity fund manager,, is now a leading investor in Asian equities, with offices in USA, UK, Canada, China, Columbia, Korea, Taiwan, Hong Kong, Australia, Vietnam, India, Brazil and rapidly expanding to other parts of the globe. With its strong foundation in Asia and presence in major financial markets in this region, has established a leadership position in the Asia Pacific region. 9

10 The Sponsor has entrusted a sum of Rs. 1,00,000/- (Rupees one lakh) to the Trustee as the initial contribution towards the corpus of the Mutual Fund. The Sponsor holds 100% of the paid up equity capital of the AMC. ii. Mutual Fund (MAMF): Mutual Fund (MAMF) was set up as a Trust by the Sponsor, Global Investments Company Limited (MAGIC) on 11 th October, 2007 with Trustee Company Private Limited ( the Trustee ) as a Trustee in accordance with the provisions of the Indian Trust Act, 1882 (2 of 1882) and is duly registered under the Indian Registration Act, The Trustee has entered into an Investment Agreement dated October 11, 2007 with Global Investments (India) Private Limited (the AMC) to function as the Investment Manager for all the Schemes of MAMF. MAMF was registered with SEBI on 30th November, 2007 vide Registration No. MF/055/07/03. iii. Trustee Company Private Limited: Trustee Company Private Limited (the Trustee) is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the unitholders. The Trustee through its Board of Directors shall discharge its obligations as trustee of Mutual Fund as provided in the Regulations and the Trust Deed. The Trustees shall ensure that the transactions entered into by the AMC are in accordance with the SEBI Regulations and will also review the activities carried on by the AMC. Trustee Company Private Limited is registered under the Companies Act, 1956 and was incorporated on April 23, The Sponsors have executed a Trust Deed on October 11, 2007 appointing Trustee Company Private Limited as Trustee of Mutual Fund. The Trustee seeks to ensure that MAMF and the Schemes floated thereunder are managed by the Global Investments (India) Private Limited in accordance with the Trust Deed, the Regulations, directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in India and other regulatory agencies. Share Capital: During the year under review, there has been no change in the equity shareholding pattern of Trustee Company Private Limited. The shareholding pattern of Trustee Company Private Limited: Sr. No. Shareholder s Name Paid-up capital in Rs. (Equity Shares of Rs.10/- each) Number of shares (Equity Shares of Rs.10/- each) % of Shareholding i. Global Investments Co. (MAGI), Korea. (Sponsor) ii. Mr. Jisang Yoo (Nominee shareholder of MAGI) iii. Mr. Mi Seob Kim TOTAL 100,000 10, Change in Composition of Board Members: During the year under review, there has been no change in the composition of the Board of Directors of the Trustee. Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 requires that the Board of Trustee Company shall comprise of two-thirds of the Directors who are not associated in any manner with the Sponsors. Further, none of the Directors on the Board of Trustee Company Private Limited are associated with the Sponsors of Mutual Fund. iv. Global Investments (India) Private Limited: Global Investments (India) Private Limited, a company registered under the Companies Act, 1956 and having its registered office at Unit 606, 6 th Floor, Windsor, off CST Road, Kalina, Santacruz (E), Mumbai Global Investments (India) Private Limited has been appointed as the Asset Company (AMC) of Mutual Fund by the Trustee vide Investment Agreement ( IMA ) dated October 11, 2007 entered into between Trustee Company Private Limited and Global Investments (India) Private Limited. The Investment Manager was approved by SEBI to act as the AMC for the Fund vide letter no. IMD/HSV/OTW/109716/2007 dated 30th November, The AMC also provide non-binding Advisory services to group companies operating offshore funds domiciled in Korea and Hongkong. Share Capital: During the year under review, there has been no change in the equity shareholding pattern of Global Investments (India) Private Limited. The shareholding pattern of the Global Investments (India) Private Limited as on 31 st March, 2018 is as follows: Sr. No. Shareholder s Name Paid-up capital in Rs. (Equity Shares of Rs.10/- each) Number of shares (Equity Shares of Rs.10/- each) % of Shareholding 1 Global Investments Co. (MAGI), Korea. (Sponsor) 2,031,885, ,188, Mr. Jisang Yoo (Nominee shareholder of MAGI) # TOTAL 2,031,885, ,188, # less than 0.00% Change in Composition of Board Members: During the year under review, Mr. B. N. Chakraborty ceased to be an Independent Director w.e.f February 21, 2018 and Mr. Ananth Narayan Gopalakrishnan was appointed as an Additional Director (Independent) w.e.f May 29, 2018 on the Board of the AMC. As required under the provisions of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, 50% of the Directors on the Board of the AMC are Independent Directors who are not an associate of or associated in any manner with the sponsor or any of its subsidiaries or the Trustee Company. 10

11 4. INVESTMENT OBJECTIVE OF THE SCHEMES: i. India Equity Fund: The investment objective of the scheme is to generate long term capital appreciation by capitalizing on potential investment opportunities through predominantly investing in equities, equity related securities. The Scheme does not guarantee or assure any returns. ii. Emerging Bluechip Fund: The investment objective of the scheme is to generate income and capital appreciation from a portfolio primarily investing in Indian equities and equity related securities of large cap and mid cap companies at the time of investment. From time to time, the fund manager may also seek participation in other Indian equity and equity related securities to achieve optimal Portfolio construction. The Scheme does not guarantee or assure any returns. iii. Hybrid Equity Fund: The investment objective of the Scheme is to generate capital appreciation along with current income from a combined portfolio of predominantly investing in equity & equity related instruments and balance in debt and money market instruments. The Scheme does not guarantee or assure any returns. iv. Tax Saver Fund: The investment objective of the scheme is to generate long-term capital appreciation from a diversified portfolio of predominantly equity and equity related instruments. The Scheme does not guarantee or assure any returns. v. Great Consumer Fund: The investment objective of the scheme is to generate long term capital appreciation by investing in a portfolio of companies/funds that are likely to benefit either directly or indirectly from consumption led demand in India. The Scheme does not guarantee or assure any returns. vi. Cash Fund: The investment objective of the scheme is to generate consistent returns with a high level of liquidity in a judicious portfolio mix comprising of money market and debt instruments. The Scheme does not guarantee any returns. vii. Savings Fund: Low Duration Fund - An Open ended low duration Debt Scheme investing in instruments with Macaulay duration of the portfolio between 6 months and 12 months (please refer to page no. 20 of SID) viii. Dynamic Bond Fund: Dynamic Bond Fund - An Open-ended dynamic debt scheme investing across duration ix. Short term Fund: Short Duration Fund - An open ended short term debt scheme investing in instruments such that the Macaulay duration of the portfolio is between 1 year to 3 years (please refer to page no. 24 of SID) x. Healthcare Fund: The investment objective of the scheme is to seek to generate long term capital appreciation through investing in equity and equity related securities of companies benefitting directly or indirectly in Healthcare and allied sectors in India. The Scheme does not guarantee or assure any returns. 5. SIGNIFICANT ACCOUNTING POLICIES: The significant accounting policies form part of the notes to the Accounts annexed to the Balance Sheet of the Schemes. The Accounting Policies are in accordance with Securities Exchange Board of India (Mutual Funds) Regulations, Unclaimed Redemptions & Dividends: The Summary of number of investors and Corresponding amount of unclaimed redemption and dividend as at March 31, 2018 is as follows: Name of the Scheme Unclaimed Redemptions Unclaimed Dividends Amount (Rs.) No. of Investors Amount (Rs.) No. of Investors India Equity Fund 4,132, ,556, Emerging Bluechip Fund 1,798, , Great Consumer Fund ** 917, , Savings Fund 68, Cash Fund ** 155, , Hybrid Equity Fund 42, , Tax Saver Fund , ** Including Merged Schemes Details of Investor Complaints: The Fund is also prompt in redressing the complaints/requests received from the investors. The Statement on Status of Redressal of Complaints received against Mutual Fund during the financial year -18 is annexed and forms part of the Trustee Report as Annexure I. In the said statement, details of complaints on data corrections in Investor details have also been mentioned as per the AMFI Best Practice Circular No. 135/BP/25/11-12 dated March 07, ROLE OF MUTUAL FUNDS IN CORPORATE GOVERNANCE OF PUBLIC LISTED COMPANIES In terms of the Securities and Exchange Board of India ( SEBI ) circular no. SEBI/ IMD/ CIR No. 18/198647/ 2010 dated March 15, 2010 and clarificatory received from SEBI on June 23, 2011, the MAMF has framed a general voting policy and procedures for exercising the voting rights in respect of 11

12 shares held by its Schemes ( Voting Policy ). The Board of Directors of Trustee Company Private Limited has adopted the Voting Policy. The Voting Policy and the auditor s certification on the voting report for financial year -18 is annexed as Annexure II and Annexure III respectively. Further, in terms of aforementioned circular, the AMC has disclosed the details of actual exercise of proxy votes in the AGMs/ EGMs/Postal Ballot of the investee companies (based on equity holdings as on the record date across all Schemes of the Fund) for the financial year -18 in the detailed Annual Report -18 of the Schemes, displayed on website of the Fund. Also, the Voting Policy is also displayed on the website of the Fund viz LIABILITY AND RESPONSIBILITY OF TRUSTEE AND SPONSORS The main responsibility of the Trustee is to safeguard the interest of the Unitholders and inter-alia ensure that Global Investments (India) Private Limited (the AMC) functions in the interest of investors and in accordance with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed and the Statement of Additional Information, Scheme Information Document/Offer Document of the respective Schemes. From the information provided to the Trustee and the reviews the Trustee has undertaken, the Trustee believes the AMC has operated in the interests of the Unitholders. The Sponsors are not responsible or liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial contribution of Rs. 1 lakh made by them towards setting up of Mutual Fund. 9. STATUTORY INFORMATION: (a) The Sponsors are not responsible or liable for any loss resulting from the operation of the Schemes of the Fund beyond their initial contribution (to the extent contributed) of Rs.1 Lakh for setting up the Fund, and such other accretions / additions to the same. (b) The price and redemption value of the units, and income from them, can go up as well as down with fluctuations in the market value of its underlying investments. (c) Full Annual Report is available on the website ( and shall be available for inspection at the Head Office of the mutual fund. Present and prospective unit holder can obtain copy of the trust deed, the full Annual Report of the Fund / AMC at a price. 10. Acknowledgement The Trustees thanks SEBI, AMFI, the investors, Investors Service Centers, distributors, key partners, service providers, Global Investments (India) Private Limited and its employees for their commitment and looks forward to their continued support. Investors may note that the Full Annual Report shall be disclosed on the website ( and shall also be available for inspection at the Head Office of the Mutual Fund. On written request present and prospective unit holders / investors can obtain a copy of the Trust Deed, the Annual Report at a price and the text of the relevant Scheme. The Balance Sheet as at March 31, 2018 and the Revenue Account for the year ended March 31, 2018 for the various schemes are annexed to this Report. For Trustee Company Private Limited sd/- sd/- V. B. Haribhakti S. T. Gerela Chairman Director Place : Mumbai Date : July 19,