Mirae Asset Mutual Fund announced the launch of the Mirae Asset Nifty 200 Alpha 30 ETF, an open-ended scheme replicating/tracking the Nifty 200 Alpha 30 Total Return Index.
The scheme opened for public subscription on October 09, 2023, and will close on October 18, 2023. The scheme re-opens for continuous sale and repurchase from October 23, 2023.
What kind of mutual fund scheme is this?
This is an open-ended exchange-traded fund scheme replicating/tracking the Nifty 200 Alpha 30 Total Return Index.
Commenting on the new NFO, Siddharth Srivastava, Head ETF Products, Mirae Asset Investment Managers, said, “Mirae Asset Mutual Fund has been at the forefront of introducing several innovative ETFs to Indian investors in the last few years. Mirae Asset Nifty 200 Alpha 30 ETF will seek to capture alpha and momentum strategy. The portfolio will consist of 30 large and midcap stocks, where selection and weighting are based on the stock’s alpha instead of the free float market cap.”
“The frequent quarterly rebalancing will seek to capture market trends and performing stocks, which is why portfolio exposure towards large and midcap segments and towards the sector will evolve depending upon the performance cycle. In a growing market like India, Alpha strategy has done well historically in the long term especially in the bull markets, though with higher volatility. Investors may seek to invest in this product if they want to capture momentum/alpha strategy after assessing their risk profile,” added Srivastava.
What is the main objective of investing in this fund?
The investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Nifty 200 Alpha 30 Total Return Index, subject to tracking error. There is no assurance or guarantee that the investment objective of the scheme will be achieved.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 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 allocations (% of total assets)
Securities included in the Nifty 200 Alpha 30 Index
Money market instruments/debt securities, Instruments, and/or units of debt/liquid schemes of domestic mutual funds.
Low to Medium
Are there similar mutual funds in the market?
To date, no asset management company (AMC) has launched any such exchange-traded fund (ETF) for people to invest in.
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked to the performance of the Nifty 200 Alpha 30 Total Return 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.
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” would be calculated as under:
- For investors transacting directly with the AMC: No Exit load will be levied on redemptions made by the market maker/large investors directly with the AMC.
- For investors transacting on the exchange: Not Applicable.
Who will manage this scheme?
Ekta Gala andVishal Singh are the designated fund managers of this scheme.
Does the fund contain any inherent risk?
The scheme involves “Very High 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 very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.