Mutual Fund News : Mirae Asset Mutual Fund Introduces Mirae Asset ESG Sector Leaders ETF

Publish Date:

Mirae Asset Mutual Fund has launched a new scheme - Mirae Asset ESG Sector Leaders ETF.

It is a passively managed open-ended scheme replicating/tracking Nifty100 ESG Sector Leaders Total Return Index.

Accordingly, the investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Nifty 100 ESG Sector Leaders Total Return Index, subject to tracking error. The Scheme does not guarantee or assure any returns.

Under normal circumstances the scheme will invest at 95% to 100% of the funds portfolio will be invested in Securities included in the Nifty100 ESG Sector Leaders Index.

It can invest up to 5% of its assets in Money market instruments / debt securities, Instruments and/or units of debt/liquid schemes of domestic Mutual Funds.

The fund will not invest in ADR/ GDR / Foreign Securities / Securitized Debt/ structured obligation/ Repo in Corporate Debt Securities nor will it engage in short selling.

Mirae Asset ESG Sector Leaders ETF will be managed passively with investments in stocks constituting the Nifty100 ESG Sector Leaders Index.

It will endeavor to track the benchmark index and invest in the similar proportion (weightage) as in the Nifty100 ESG Sector Leaders Index.

Notably, Nifty100 ESG Sector Leaders Index aims to track the performance of select companies within each sectors of the Nifty 100 which have scored well on management of ESG risk and which do not have involvement in any major controversies.

The investment strategy of the fund would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, considering the change in weights of stocks in the Index as well as the incremental collections/redemptions in the scheme.

The scheme’s performance will be benchmarked against Nifty 100 ESG Sector Leaders Total Return Index.

It will be managed by Ms Bharti Sawant.

The NFO opens for subscription on October 27, 2020 and closes on November 10, 2020. The scheme will reopen for continuous Sale and Repurchase from November 18, 2020.

Value of each unit of the scheme will be approximately equal to 1/100th of the value of Nifty 100 ESG Leaders Index on the date of allotment of units. The minimum subscription amount is Rs 1,000 and in multiples of Re 1 thereafter.

The scheme does not offer any Plans/Options for investment

The Units of the Scheme is proposed to be listed on National Stock Exchange of India Limited, and BSE Limited.