Mutual Fund News : Mirae Asset Mutual Fund Launches Mirae Asset Banking and Financial Services Fund

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Mirae Asset Mutual Fund has launched a new scheme - Mirae Asset Banking and Financial Services Fund.

It is an open-ended fund sector fund investing in Banking & Financial Services Sector.

Accordingly, the investment objective of the scheme is to generate long-term capital appreciation from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in banking and financial services sector. The Scheme does not guarantee or assure any returns.

Under normal circumstances, minimum 80% of the funds portfolio will be invested in Equity and equity related instruments in the Banking and Financial Services Sector in India.It can invest up to 20% of the assets in Other equities and equity related Instruments.

Up to 20% of the funds assets can be held in Debt and Money Market Instruments including schemes of Mutual Fund, whereas 0% to 10% in Units issued by REIT/InVITs.

The fund managers of Mirae Asset Banking and Financial Services Fund would broadly analyses the industry trends and business cycles in companies that may benefit from the growth in the Banking and Financial services sector that includes but not limited to Banks, NBFCs, HFCs, MFCs, Broking and securities, Stock exchanges, depositories and related infrastructure providers, Wealth management or various kinds of asset management, Insurance, currency and forex, Credit cards and payment gateways or such infrastructure providers, digital financial institutes, rating agencies and investment companies.

Mirae Asset Banking and Financial Services Fund has the flexibility to invest across market capitalization in portfolio companies within this theme.

The universe of stocks will comprise majorly of companies having robust business models, enjoying sustainable competitive advantages as compared to their competitors and having high return ratios. The fund manager can also have the flexibility to follow a focused approach on the investments, but he will try to avoid liquidity risk.

Mirae Asset Banking and Financial Services Fund’s performance will be benchmarked against NIFTY Financial Services TRI Index (Total Return Index).

It will be managed by Mr Harshad Borawake and Mr Gaurav Kochar.

The NFO opens for subscription on November 25, 2020, and closes on December 04, 2020. The scheme will reopen for continuous Sale and Repurchase from December 11, 2020.

Mirae Asset Banking and Financial Services Fund’s NAV is priced at Rs 10/- per unit during the NFO period. The minimum subscription amount is Rs 5,000 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having Growth Option and Dividend Option (Dividend Re-investment and Dividend Pay-out facilities)