Mirae Asset Mutual Fund announced the launch of the Mirae Asset Nifty Bank ETF, an open-ended scheme tracking the Nifty Bank Total Return Index.
The scheme opened for public subscription on July 12, 2023, and will close on July 18, 2023. The scheme re-opens for continuous sale and repurchase from July 21, 2023.
Q. What kind of mutual fund scheme is this?
This is an open-ended exchange-traded fund scheme replicating the Nifty Bank Total Return Index.
Q. 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 Bank Total Return Index, subject to tracking error. There is no assurance or guarantee that the investment objective of the scheme would be achieved.
Q. 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) | Risk Profile | |
Minimum | Maxmum | ||
Securities included in the Nifty Bank Index | 95% | 100% | Very High |
Money market instruments/debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds. | 0% | 5% | Low to Medium |
Q. Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such Nifty bank 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:
Mutual Fund House | Nifty Bank ETF |
Nippon India Mutual Fund | Nippon India ETF Bank BeES |
ICICI Prudential Mutual Fund | ICICI Prudential Nifty Bank ETF |
Kotak Mahindra Mutual Fund | KotakBETF |
SBI Mutual Fund | SBI-ETF Nifty Bank |
Axis Mutual Fund | Axis Banking ETF |
HDFC Mutual Fund | HDFC Banking ETF |
Aditya Birla Sun Life Mutual Fund | Aditya BSL Banking ETF |
UTI Mutual Fund | UTI Bank ETF |
DSP Mutual Fund | DSP Nifty Bank ETF |
Edelweiss Mutual Fund | Edelweiss ETF-Nifty Bank |
| Source: Tickertape | |
Q. How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked to the performance of the Nifty Bank Total Return Index. As per its investment objective, the investment would primarily be in securities that 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” 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.
Q. Who will manage this scheme?
Ekta Gala is the designated fund manager of this scheme.
Q. 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.
