Mirae Asset has just filed a draft with SEBI for its latest ETF, aiming to track the BSE 200 Equal Weight Total Return Index. So what does that mean? Well, this ETF isn’t just focusing on the heavyweights but is spreading out investments equally across the top 200 companies on BSE. It’s like giving each stock an equal shot.
The idea behind this ETF is to closely mirror the performance of the BSE 200 Equal Weight Index—meaning it’s trying to give investors returns that line up with the index minus a few fees here and there. While nothing’s guaranteed (this is the market, after all), Mirae Asset is aiming for tracking error to stay under 2% a year, which could keep it pretty close to the index’s overall gains.
Once it’s listed on the NSE and BSE, investors can trade the ETF like any other stock. And for those putting in big money (think Rs.25 crore and up), there’s direct access through the Asset Management Company (AMC). But if you’re looking to get in during the New Fund Offer (NFO) period, you can start with as little as Rs.5,000. There’ll be Market Makers to ensure liquidity, so ideally, trading should stay smooth and prices fair.
The NFO price kicks off at 1/1000th of the BSE 200 Equal Weight Index’s closing value on the date of allotment. Mirae’s keeping the NFO open for at least three days and up to 15, giving investors a fair window to jump in. Fees are also investor-friendly, with an annual cap at 1% of daily net assets to keep costs manageable.
Unlike the usual cap-weighted approach where big companies dominate, this ETF’s equal-weight model makes room for all 200 companies to shine. This way, you’re not overly reliant on a handful of giants, and there’s a bit of a buffer if some of the bigger players have a rough patch. The ETF’s benchmark is the BSE 200 Equal Weight TRI, which includes India’s top 200 stocks across sectors, with a combined market cap north of Rs.200 lakh crore—talk about coverage!
Conclusion: Mirae’s BSE 200 Equal Weight ETF could be an interesting addition for those looking to diversify without the roller-coaster effect of top-heavy funds. It’s a way to get balanced exposure to both large and mid-cap players while reducing those concentration risks. Of course, tracking errors and market ups and downs are still part of the game.
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.
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