MIRAE ASSET MF LAUNCHES MIRAE ASSET NIFTY500 MULTICAP 50:25:25 ETF

Published on Aug 20, 2024 12:12

Mirae Asset Investment Managers (India) launches India`s first Multicap Exchange Traded Fund, `Mirae Asset Nifty500 Multicap 50:25:25 ETF`, an open-ended scheme replicating/tracking Nifty500 Multicap 50:25:25 Total Return Index.

The new fund offer for the scheme opened on 12 August 2024, and it closes on 26 August 2024. The fund managers are Ekta Gala and Vishal Singh. The minimum investment during NFO should be Rs 5,000 and in multiples of Re 1 thereafter.

As of 30 June 2024, 25 actively managed mutual fund schemes with an AUM of Rs 1,54,024.90 crore are benchmarked against Nifty500 Multicap 50:25:25 Index.

The index covers 92.1% of the free-float market cap of listed companies on the NSE, providing extensive market exposure. It comprises of 100 large-cap stocks, 150 mid-cap stocks and 250 small-cap stocks with 50% weightage towards large cap and 25% each towards midcap and small cap stocks offering a well-rounded investment approach.

By including companies across different market capitalizations, the index offers diversified exposure to various sectors and industries. The mix of large, mid, and small-cap stocks combines growth potential with portfolio stability, making it suitable for a balanced investment strategy.

This new fund aims to generate returns that closely mirror the Nifty500 Multicap 50:25:25 Total Return index. With this new fund, Mirae Asset Mutual Fund aims to provide investors with a diversified investment approach with balanced exposure across various market capitalizations.

Siddharth Srivastava, Head � ETF Products and Fund Manager, Mirae Asset Investment Managers (India), said, "The Mirae Asset Nifty500 Multicap 50:25:25 ETF is a strategic addition to our existing product portfolio. This scheme offers a unique investment opportunity by providing balanced exposure to the entire universe of large, mid and small-cap stocks where portfolio weight towards each market segment is predefined in a manner to provide investors the stability of large cap along with growth opportunities with reasonable exposure towards mid and small caps. Hence, the fund is designed to capture the growth potential of a broad market spectrum while aiming to minimize the risk. We believe this ETF could be an excellent addition for investors seeking a well-rounded investment strategy."

This new fund provides investors a transparent, low cost (compared to actively managed schemes) and method driven approach for multi cap investing which aims for effective allocation across market cap segments, which will be targeted by this index via quarterly rebalancing in order provide the specified exposure. This disciplined approach aims to deliver consistent performance over the long term.