Mirae Asset Mutual Fund has announced a new fund offering (NFO) of the Mirae Asset Nifty 50 Exchange Traded Fund (ETF), an open-ended scheme which will track the Nifty 50 index. The NFO period of the scheme is only for one day – November 19, 2018 subsequent to which the ETF will trade on stock exchanges, just like stocks of companies. The scheme will be listed on the NSE and BSE not later than November 26, 2018. Unlike mutual funds, intraday trades are allowed on ETFs. A demat account is mandatory to be able to invest in ETFs.
The scheme will invest 95 to 100 percent of its assets in components of the Nifty 50 index. The scheme shall also invest up to 5 percent of its assets money market instruments and debt securities.
The Mirae Asset Nifty 50 ETF will be benchmarked against the Nifty 50 Total Return Index (TRI). The Nifty 50 is a group of 50 companies from different sectors, that reflect the overall conditions of the market. The sectors with the most weightage in this index are financial services (36.45 percent), IT (14.78 percent), energy (14.52 percent) and consumer goods (10.79 percent). Nifty 50 include companies like HDFC Bank, Reliance Industries, ITC, Larsen & Toubro, among others.
| Index Name | 1-yr TRI (%) | 5-yr TRI (%) |
| Nifty 50 | 1.91 | 11.90 |
*Returns data as of Oct. 31, 2018
The fund will be managed by Bharti Sawant. Since this is a passive scheme, the fund manager plays a limited role in the performance of the fund.
Key information about the Mirae Asset Nifty 50 ETF NFO:
| NFO period | November 19, 2018 |
| Minimum application amount | Rs. 5,000 |
| Benchmark | Nifty 50 TRI |
| Fund Manager | Bharti Sawant |
Other Funds by Mirae Asset Management
| Scheme Name | 3Y Returns (%) | AUM (Rs. Cr.) | Category |
| Mirae Asset Emerging Bluechip Fund | 14.32 | 5447.63 | Large & Mid Cap Fund |
| Mirae Asset Great Consumer Fund | 17.07 | 339.57 | Sectoral/Thematic Fund |
| Mirae Asset Large Cap Fund | 12.94 | 7478.51 | Large Cap Fund |
| Mirae Asset Savings Fund | 6.83 | 373.76 | Low Duration Fund |
| Mirae Asset Cash Management Fund | 6.87 | 3352.03 | Liquid Fund |
| Mirae Asset Hybrid Equity Fund | 12.14 | 1183.13 | Aggressive Hybrid Fund |
| Mirae Asset Tax Saver Fund | 15.72 | 1001.56 | ELSS |
{Data as on Feb 19, 2020; Source: Value Research}