Mirae Asset Mutual Fund Introduces Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund

An open-ended fund of fund scheme investing in units of Mirae Asset Nifty200 Alpha 30 ETF

Mirae Asset Investment Managers (India) Pvt. Ltd. announced the launch of Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund (An open-ended fund of fund scheme investing in units of Mirae Asset Nifty200 Alpha 30 ETF).

The New Fund Offer for the scheme opens on Monday, July 8, 2024, and closes on Monday, July 22, 2024. The fund managers are Ms. Ekta Gala and Mr. Vishal Singh. Minimum investment should be Rs 5,000 and in multiples of Re 1 thereafter. Systematic Investment Plan can be set up with an investment of Rs 500 and in multiplies of Re 1 thereafter.

Mr. Siddharth Srivastava, Head-ETF Products, Mirae Asset Investment Managers (India) Pvt. Ltd., said, “Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund is a strategic addition to our existing product portfolio, which seeks to provide a valuable opportunity for investors who wish to invest in the Mirae Asset Nifty200 Alpha 30 ETF without requiring a broking or a demat account. This product is designed to capture the alpha and momentum strategy, focusing on 30 large and Mid-Cap stocks selected and weighted based on their ‘alpha score’ rather than free float market cap. The portfolio is reviewed on a quarterly basis and has exhibited dynamic rotation between sectors and large and midcap stocks by capturing latest market trends.”

Alpha is simply a ‘persistence’ factor i.e. which seeks to benefit from continued latest trends in the market. By selecting and weighing stocks purely based on “Alpha score”, index remains unbiased towards large or midcap stock and seeks to capture the alpha and momentum strategy in a true to label manner. This index seeks to generate returns by capturing latest market trends and hence has historically exhibited higher portfolio churns in order to capture in-favour segments and stocks. However, investors should be aware of the higher drawdowns and increased volatility associated with this index, and consider it from a long-term investment perspective. Investors may consider this product if they aim to capitalize on the momentum and alpha strategy after evaluating their risk profile.

The scheme will re-open for continuous sale and repurchase from July 29, 2024.

Disclaimer: The article is for informational purposes only and not investment advice.