Mutual Fund News : Mirae Asset Mutual Fund Introduces Mirae Asset NYSE FANG Plus ETF

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Mirae Asset Mutual Fund has launched a new scheme - Mirae Asset NYSE FANG+ETF.

It is a passively managed open-ended scheme replicating/tracking NYSE FANG+ Total Return Index.

Accordingly, the investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the NYSE FANG+ Total Return Index, subject to tracking error and forex movement. 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 NYSE FANG+ 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.

As per the Scheme Information Document, Mirae Asset NYSE FANG+ETF will be managed passively with investments in stocks in a proportion that match as close as possible to the weights of these stocks in NYSE FANG+ Index.

The NYSE FANG+ Index is an equal-dollar weighted Index designed to represent a segment of the technology and consumer discretionary sectors consisting of 10 highly-traded growth stocks of technology and tech-enabled companies such as Facebook, Apple, Amazon, Netflix, and Alphabet’s Google.

The NYSE FANG+ index outpaces many of its peer indices and is one of the most highly correlated indices to technology and related stocks. Its underlying composition is equally weighted across all stocks, allowing for a more diversified and represented portfolio.

The investment strategy of the Scheme will be to invest in a basket of securities forming part of NYSE FANG+ Index in similar weight proportion.

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

A part of the funds may be invested in debt and money market instruments, to meet the liquidity requirements.

The scheme’s performance will be benchmarked against NYSE FANG+ TRI (Total Return Index) (INR).

It will be managed by Mr Siddharth Srivastava.

The NFO opens for subscription on April 19, 2021 and closes on April 30, 2021. The scheme will reopen for continuous Sale and Repurchase from May 07, 2021.

Value of each unit of the scheme will be approximately equal to 1/10,000th value of the NYSE FANG+ closing Index (Converted to INR) as on the date of allotment for applications received during the New Fund Offer (“NFO”) period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The scheme does not offer any Plans/Options for investment

The Units of the ETF will be listed on the Capital Market Segment of the National Stock Exchange of India Ltd (NSE) /BSE Limited (BSE) and/or any other recognised stock exchanges as may be decided by the AMC from time to time.