Mirae Asset Mutual Fund launches Two New Index Funds; Know Details
Mirae Asset Mutual Fund announces the launch of two new index funds – Mirae Asset Nifty 50 Index Fund and Mirae Asset Nifty LargeMidcap 250 Index Fund. Both the funds are for bringing diversified exposure to the Indian equity market through different market cap segments to the investors. The opening dates for the NFO period of both schemes are October 10, 2024, and they will close on October 18, 2024. The sale will begin as per continuous purchase from 25th October, 2024.
Mirae Asset Nifty 50 Index Fund
An open-ended scheme tracking the Nifty 50 Total Return Index enables investors to play a bet with India’s top 50 large-cap companies and earn returns aligned with the Nifty 50 Total Return Index, subject to tracking error, before expenses. There is no guarantee that the stated investment objective shall be met as specified by the mutual fund offered by Mirae Asset.
It is an open-ended scheme designed to replicate the NIFTY LargeMidcap 250 Total Return Index, which captures the performance of large-cap and mid-cap companies. Indexed for equal weightage of each segment, it offers 50% exposure to large-cap stocks and 50% exposure to mid-cap stocks. Briefly, investments are created to produce returns before deduction of expense identical to that produced by the Nifty LargeMidcap 250 Total Return Index with no guarantee that they will be met.
The Nifty LargeMidcap 250 Index will include constituents from the Nifty 100 and Nifty Midcap 150 indices, thus closely representing India’s equity market by offering representation of both large-cap and mid-cap constituents.
NFO Details and Minimum Investment
The funds shall be managed by Ekta Gala and Vishal Singh, who shall monitor the performance of both funds during and after the NFO period. The minimum inaugural investment allowed for both funds is Rs.5,000 and thereafter, additional investments can be permitted in multiples of Re 1 only during the NFO period.
The NFO of both funds will open on October 10, 2024, and close on October 18, 2024. The funds will then be available for continuous sale and repurchase from October 25, 2024.
Investment Benefits and Strategy
The Mirae Asset Nifty 50 Index Fund will enable investors to gain low-cost exposure to the best-performing blue-chip companies operating on the NSE. Hence, with reference to the top 50 large-cap businesses, the fund should provide stable and robust investment for those seeking exposure in the large-cap segment of the market.
The Mirae Asset Nifty LargeMidcap 250 Index Fund, on the other hand, provides balanced exposure to both large and mid-cap companies, giving investors the opportunity to benefit from the stability of large-cap stocks while also tapping into the growth potential of mid-cap companies. It would look for equal participation in both in an effort to have a diversified investment experience.
In brief, both are strategic additions to the offerings of Mirae Asset’s product in that investors would have the opportunity to diversify their portfolios through market capitalization exposures or tracking well-established indices. These funds are, therefore, specifically suited to index-based investors seeking growth in the Indian equity market.
