Publish Date:
Mirae Asset Mutual Fund has launched a new scheme - Mirae Asset Nifty Financial Services ETF.
It is an open ended Exchange Traded Fund that will track the Nifty Financial Services Index.
Accordingly, the investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Nifty Financial Services Total Return Index, subject to tracking error. The Scheme does not guarantee or assure any returns.
Under normal circumstances the scheme will invest 95% to 100% of its assets in Securities included in the Nifty Financial Services Index. A very small portion (0% to 5% of its assets) may be kept 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 Nifty Financial Services ETF will be managed passively with investments in stocks in the same proportion as in the Nifty Financial Services Index.
The investment strategy of the Scheme will be to invest in a basket of securities forming part of Nifty Financial Services 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, considering 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 requirement.
Mirae Asset Nifty Financial Services ETF’s performance will be benchmarked against Nifty Financial Services Index - TRI (Total Return Index). The scheme will be managed by Ms Ekta Gala.
The NFO opens for subscription on July 22, 2021, and closes on July 29, 2021. The scheme will re-open for continuous Sale and Repurchase from August 03, 2021
The offer for sale of units is at 1/1000th value of the Nifty Financial Services closing Index as on the date of allotment for applications received during the New Fund Offer (“NFO”) period and at approximately indicative NAV based prices (along with applicable charges and execution variations) during the Ongoing Offer for applications directly received at AMC.
The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.
The Units of the Scheme is proposed to be listed on the Capital Market Segment of the NSE and BSE. The AMC engages Authorized Participants for creating liquidity for the Units of the Scheme on the Stock Exchange(s) so that investors other than Authorized Participants and Large Investors are able to buy or redeem Units on the Stock Exchange(s) using the services of a stock broker.