Publish Date:
Mirae Asset Mutual Fund has launched a new scheme - Mirae Asset S&P 500 Top 50 ETF.
It is a passively managed open-ended scheme replicating/tracking S&P 500 TOP 50 Total Return Index (TRI).
Accordingly, the investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the S&P 500 Top 50 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 S&P 500 TOP 50 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 S&P 500 Top 50 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 S&P 500 TOP 50 Index.
The S&P 500 Top 50 consists of 50 of the largest companies from the S&P 500, reflecting U.S. megacap performance. Index constituents are weighted by float-adjusted market capitalization. The index is back-tested since June 2005 and the launch date for the index is November 2015.
The investment strategy of the Scheme will be to invest in a basket of securities forming part of S&P 500 TOP 50 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 requirements.
The scheme’s performance will be benchmarked against S&P 500 TOP 50 TRI (Total Return Index) (INR).
It will be managed by Mr Siddharth Srivastava.
The NFO opens for subscription on September 01, 2021, and closes on September 14, 2021. The scheme will reopen for continuous Sale and Repurchase from September 22, 2021.
Value of each unit of the scheme will be approximately equal to 1/10,000th value of the S&P 500 TOP 50 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.