The new fund offer or NFO of the scheme is open for subscription and will close on August 26.
The fund aims to generate returns that closely mirror the Nifty500 Multicap 50:25:25 Total Return Index. With this new fund, the fund house aims to provide investors with a diversified investment approach with balanced exposure across various market capitalizations.
The scheme will be benchmarked against the Nifty500 Multicap 50:25:25 Total Return Index and will be managed by Ekta Gala and Vishal Singh. The minimum investment during NFO is Rs 5,000 and in multiples of Re 1 thereafter.
This new fund provides investors with a transparent, low-cost (compared to actively managed schemes) and method-driven approach for multicap investing which aims for effective allocation across market cap segments, which will be targeted by this index via quarterly rebalancing in order to provide the specified exposure. This disciplined approach aims to deliver consistent performance over the long term, said the press release by the fund house.
“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 largecap 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,” said Siddharth Srivastava, Head – ETF Products and Fund Manager, Mirae Asset Investment Managers (India).The scheme is suitable for investors who are seeking returns commensurate with performance of the Nifty500 Multicap 50:25:25 Total Return Index, subject to tracking error over long term and want investments in equity securities covered by the Nifty 500 Multicap 50:25:25 Total Return Index.