Mirae Asset Investment Managers Expands Offerings with New Fund Launches
Mirae Asset Investment Managers (India) has recently unveiled an exciting suite of four new fund offers (NFOs), marking a significant expansion of its Exchange-Traded Fund (ETF) and Fund of Fund (FoF) offerings. These new schemes are strategically designed to provide investors with exposure to recent Initial Public Offerings (IPOs), spin-offs, and a balanced approach to investing in the top 200 stocks through an innovative equal-weight strategy.
Overview of the New Funds
The newly launched funds include:
- Mirae Asset BSE Select IPO ETF
- Mirae Asset BSE Select IPO ETF Fund of Fund
- Mirae Asset BSE 200 Equal Weight ETF
- Mirae Asset BSE 200 Equal Weight ETF Fund of Fund
These funds aim to cater to a diverse range of investor needs, from those looking to capitalize on the potential of newly listed companies to those seeking a balanced investment across a broad spectrum of stocks.
NFO Subscription Dates and Key Details
Investors interested in these new offerings should take note of the following subscription dates:
-
Mirae Asset BSE Select IPO ETF & Mirae Asset BSE 200 Equal Weight ETF
- Opens: February 24, 2025
- Closes: March 5, 2025
- Reopens for continuous sale & repurchase: March 11, 2025
- Mirae Asset BSE Select IPO ETF Fund of Fund & Mirae Asset BSE 200 Equal Weight ETF Fund of Fund
- Opens: February 25, 2025
- Closes: March 11, 2025
- Reopens for continuous sale & repurchase: March 19, 2025
The minimum investment required during the NFO period is ₹5,000, with subsequent investments allowed in multiples of ₹1. It is important to note that all four schemes carry a very high risk level, reflecting the inherent volatility associated with IPOs and equity investments.
Mirae Asset BSE Select IPO ETF & Fund of Fund
The Mirae Asset BSE Select IPO ETF is designed to track the BSE Select IPO Total Return Index, providing structured exposure to newly listed IPOs and spin-offs among the top 500 companies by market capitalization. The accompanying Fund of Fund (FoF) invests in units of this ETF, allowing investors to gain exposure without directly purchasing the ETF.
Siddharth Srivastava, Head of ETF Product & Fund Manager at Mirae Asset India, emphasized the fund’s role in offering disciplined and diversified exposure to IPOs. He stated, “IPOs and spin-offs present growth opportunities but come with inherent risks. This ETF & Fund of Fund provide a structured approach to invest in these companies post-listing.” This highlights the fund’s commitment to helping investors navigate the complexities of investing in newly listed entities.
Mirae Asset BSE 200 Equal Weight ETF & Fund of Fund
The Mirae Asset BSE 200 Equal Weight ETF follows the BSE 200 Equal Weight Total Return Index, ensuring that all 200 stocks in the index receive equal exposure. This includes a balanced mix of 100 large-cap and 100 mid-cap companies. The FoF associated with this ETF offers the same investment strategy for those who prefer a non-direct ETF route.
Srivastava explained the unique strategy behind this fund: “Unlike market-cap-weighted indices, this fund ensures equal allocation across all stocks, reducing stock-specific risk. It benefits from broad-based market growth and provides balanced exposure across large- and mid-cap segments.” This approach is particularly appealing for investors seeking to mitigate risks associated with individual stock performance while still capitalizing on overall market trends.
Fund Management & Market Impact
The newly launched schemes will be managed by experienced professionals Ekta Gala and Vishal Singh, who bring a wealth of expertise to the management of these funds. With the increasing interest in IPO participation and the appeal of equal-weight strategies as an alternative to traditional indices, these funds are poised to attract investors looking for diversified, systematic, and less concentrated investment opportunities.
As the market continues to evolve, the performance of these new funds will be closely monitored by investors and analysts alike. Mirae Asset’s innovative approach to fund management, combined with its commitment to providing structured investment options, positions it well to meet the needs of a diverse investor base in India’s dynamic investment landscape.
In conclusion, the introduction of these four new fund offers by Mirae Asset Investment Managers represents a significant step forward in providing investors with innovative and diversified investment opportunities, catering to both risk-tolerant and risk-averse individuals alike.