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Mirae Asset Mutual Fund announced the launch of the Mirae Asset Nifty 8-13-yr G-Sec ETF, an open-endedIndex Exchange Traded Fund tracking the Nifty 8-13-yr G-Sec Index constituents.
The scheme opened for public subscription on March 29, 2023, and will close on March 29, 2023.
Q. What kind of mutual fund scheme is this?
This is an open-ended Index Exchange Traded Fund tracking the Nifty 8-13-yr G-Sec Index. This fund contains relatively high-interest rate risk and relatively low credit risk.
Q. What is the main objective of investing in this fund?
The investment objective of the scheme is to provide returns before expenses that correspond to the returns of the Nifty 8-13-yr G-Sec Index, subject to tracking errors. 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.
Q. How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of Rs5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Types of Instruments | Indicative allocation (% of total assets) | Risk Profile | |
| Government securities, TREPS on Government Securities, Treasury bills | 95 | `100 | Low |
| Money Market instruments (Treasury Bills, Government Securities and Tri-party Repo on government securities or T-bills only) | 0 | 5 | Low to Medium |
Q. Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such open-ended index Exchange Traded Funds (ETFs), thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
| Name of the fund | Five-year returns (in %) |
| SBI Magnum Gilt Fund | 7.62 |
| ICICI Prudential Gilt Fund | 7.36 |
| Kotak Gilt Investment | 6.95 |
| Nippon India ETF Nifty 8-13 yr G-Sec Long-Term Gilt | 6.54 |
| Source: Value Research | |
Q. How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked to the performance of the Nifty 8-13-year G-Sec Index. As per its investment objective, the investment would primarily be in securities which are constituents of the benchmark index. Thus, the composition of the aforesaid benchmark index is such that it is most suited for comparing the performance of the scheme.
Q. Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” is also “Nil”.
Q. Who will manage this scheme?
Amit Modani will be the designated fund manager of this scheme.
Q. Does the fund contain any inherent risk?
The scheme involves “Moderate Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to moderate risk only. However, investors should consult their financial advisors if they doubt whether the product suits them.