The scheme’s new fund offer or NFO 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 manager aims to offer investors a diversified investment approach with balanced exposure to different 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 thereafter in multiples of Rs 1.
This new fund offers investors a transparent, low-cost (compared to actively managed schemes) and method-based approach to multi-cap investing, which aims at efficient allocation across market capitalisation segments, which this index will target through quarterly rebalancing to provide the specified exposure. This disciplined approach aims to deliver consistent performance over the long term, according to the fund manager’s press release.
“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 the weighting of the portfolio towards each market segment is predefined in a manner that provides investors with the stability of large caps along with growth opportunities with reasonable exposure to mid and small caps. The fund is therefore designed to capture the growth potential of a broad spectrum of the market while seeking to minimise risk. We believe this ETF could be an excellent addition for investors looking for a comprehensive investment strategy,” he said. Siddhartha SrivastavaDirector – ETF Products & Fund Manager, Mirae Asset Investment Managers (India). The scheme is suitable for investors seeking returns in line with the performance of the Nifty500 Multicap 50:25:25 Total Return Index, subject to long-term tracking error and desire investments in equity securities hedged by the Nifty 500 Multicap 50:25:25 Total Return Index.
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