Mirae Asset Launches India’s First Multicap ETF

Introduction: A New Era in Multicap Investing

Mirae Asset Mutual Fund has unveiled an innovative investment opportunity with the launch of India’s first Multicap Exchange Traded Fund (ETF), the Mirae Asset Nifty500 Multicap 50:25:25 ETF. This new offering is designed to provide investors with a balanced and diversified approach to investing across large, mid, and small-cap stocks, mirroring the Nifty500 Multicap 50:25:25 Total Return Index.

What is the Nifty500 Multicap 50:25:25 Index?

The Nifty500 Multicap 50:25:25 Index is a unique blend that covers 92.1% of the free-float market capitalization of companies listed on the NSE. This index provides extensive market exposure by balancing 100 large-cap stocks, 150 mid-cap stocks, and 250 small-cap stocks. The weighting is designed to offer 50% exposure to large-cap stocks and 25% each to mid-cap and small-cap stocks, ensuring a diversified investment approach that captures the growth potential across different market segments.

Key Features of Mirae Asset Nifty500 Multicap 50:25:25 ETF

1. Balanced Market Exposure: The ETF provides a well-rounded investment strategy with predefined portfolio weights across large, mid, and small-cap stocks. This mix offers the stability of large-cap investments while tapping into the growth potential of mid and small-cap stocks.
2. Diversification: By including a wide range of companies across various market capitalizations, the ETF offers diversified exposure to multiple sectors and industries, reducing the risk associated with investing in a single segment.
3. Risk Mitigation: The balanced exposure across different market caps aims to minimize risk while still capturing the market’s growth potential. This makes it suitable for investors looking for a stable yet growth-oriented investment option.
4. Low-Cost Investment: Compared to actively managed schemes, this ETF offers a transparent, low-cost, and method-driven approach to multicap investing. The fund’s disciplined approach, including quarterly rebalancing, is designed to deliver consistent performance over the long term.

The Strategic Vision Behind the Launch

Speaking on the launch, Siddharth Srivastava, Head of ETF Products and Fund Manager at Mirae Asset Investment Managers (India) Pvt. Ltd., highlighted the strategic intent behind the ETF. He emphasized that the fund aims to provide investors with a unique investment opportunity by balancing exposure across the entire universe of large, mid, and small-cap stocks. The goal is to capture the broad market spectrum’s growth potential while minimizing risks, making it an excellent addition for those seeking a well-rounded investment strategy.

How to Invest in the Mirae Asset Nifty500 Multicap 50:25:25 ETF

The New Fund Offer (NFO) for the scheme opens on August 12, 2024, and closes on August 26, 2024. Investors can start with a minimum investment of Rs 5000, with subsequent investments in multiples of Rs 1. The fund is managed by seasoned professionals, Ms. Ekta Gala and Mr. Vishal Singh, ensuring that investors’ portfolios are in expert hands.

About Mirae Asset Investment Managers (India) Pvt. Ltd.

Established in 2008, Mirae Asset Mutual Fund is one of India’s fastest-growing fund houses, offering a fully diversified investment platform across equity funds, debt funds, hybrid funds, and ETFs. As part of the global Mirae Asset Global Investments network, operating in 19 countries, the AMC leverages global expertise to cater to clients’ evolving needs with innovative solutions across various asset classes.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.