Mirae Asset Introduces Funds to Target India’s Emerging Spending Landscape
Mirae Asset Investment Managers has launched 2 new funds that focus on the change in how Indians are spending. These funds aim to benefit from India’s growing population, rising incomes and the shift in spending on non-essential items.
These two funds are Mirae Asset Nifty India New Age Consumption ETF and Mirae Asset Nifty India New Age Consumption ETF Fund of Fund.
Mirae Asset Nifty India New Age Consumption ETF
This is an open-ended scheme, which is intended to replicate or track the Nifty India New Age Consumption Index. It invests in the same proportion as the index with a focus on passive management.
Mirae Asset Nifty India New Age Consumption ETF Fund of Fund
This open-ended fund-of-funds scheme invests in units of the Mirae Asset Nifty India New Age Consumption ETF. It therefore invests in accordance with the performance of the ETF.
Nifty India New Age Consumption Index
The Nifty India New Age Consumption Index includes 75 stocks from areas like e-commerce, fintech, wealth management, travel, real estate, consumer electronics, and entertainment. It shows that Indians are spending more on non-essential items, especially things other than food.
Recent data reveals a big change in how people are spending. By June 2024, rural areas spent 54% of their money on non-food items, while urban areas spent 61% on the same. It also explains the fact that the overall per capita GDP in the country has now exceeded USD 2,000.
Fund Aims and Information
Mirae Asset Nifty India New Age Consumption ETF
- Target: The scheme seeks to invest in the following NFO passively in a basket of securities forming part of the Nifty India New Age Consumption Index, replicating similar weight proportions.
- NFO Dates: December 12 to December 20, 2024.
- Opening for Trading: December 27, 2024.
- Minimum Investment Amount: Rs.5,000 for the initial investment and subsequent investment multiples of Re 1.
Mirae Asset Nifty India New Age Consumption ETF Fund of Fund
- Objective: The fund will invest in shares of the Mirae Asset Nifty India New Age Consumption ETF. Its investments would be in line with the strategy of the ETF and as per the SEBI regulations.
- NFO Period: December 12 to December 26, 2024.
- Reopening for Trading: January 3, 2025.
- Minimum Subscription: Investors can begin with Rs 5,000, with additional investments allowed in multiples of Re 1.
Conclusion
These funds are ideal for investors seeking long-term growth, especially given India’s increasing expenditure on non-essential items. They provide a chance to benefit from changing shopping habits, driven by India’s growing population, a stronger economy and an increasing number of individuals utilizing digital services.
These funds focus on India’s changing spending habits, giving investors a chance to be part of the sectors that will shape the country’s future spending. While there are challenges, the potential benefits are still very high.
