NFO alert - Tap into India’s evolving consumption story with Mirae Asset Nifty India New Age Consumption ETF and fund of fund
Should you invest in Mirae Asset Nifty India New Age Consumption ETF and the Mirae Asset Nifty India New Age Consumption ETF Fund of Fund.
The Indian consumer landscape is undergoing a transformative shift, driven by rising disposable incomes, digitalization, and evolving aspirations. Mirae Asset Investment Managers (India) Pvt. Ltd. has introduced two innovative schemes that enable investors to capitalize on this growth: the Mirae Asset Nifty India New Age Consumption ETF and the Mirae Asset Nifty India New Age Consumption ETF Fund of Fund. These schemes offer exposure to India’s burgeoning discretionary consumption sector, making them an attractive choice for forward-looking investors.
Features of the Schemes
- Mirae Asset Nifty India New Age Consumption ETF
- Objective: Tracks the Nifty India New Age Consumption Index, providing exposure to emerging discretionary spending sectors.
- Key Segments: Includes 75 stocks from industries like E-commerce, Fintech, Consumer Electronics, Real Estate, Entertainment, and Travel.
- Investment Type: Open-ended ETF designed for direct participation in India’s consumption growth story.
- Mirae Asset Nifty India New Age Consumption ETF Fund of Fund
- Objective: Invest in units of the Mirae Asset Nifty India New Age Consumption ETF, offering an alternative route for investors preferring traditional mutual fund structures.
- Key Benefit: Convenience of investing in ETFs without needing a demat account.
Fund Details
- New Fund Offer (NFO) Period:
- ETF: December 12, 2024, to December 20, 2024.
- Fund of Fund: December 12, 2024, to December 26, 2024.
- Continuous Sale/Repurchase Begins:
- ETF: December 27, 2024.
- Fund of Fund: January 03, 2025.
- Minimum Investment: Rs 5,000 during the NFO, with additional investments in multiples of Re 1.
Management Insights
Siddharth Srivastava, Head of ETF Product & Fund Manager at Mirae Asset, remarked, “India’s spending patterns are evolving rapidly, driven by demographic advantages, rising disposable incomes, and digital transformation. These new funds are designed to capture this transition, offering investors a chance to benefit from the growth of India’s discretionary and aspirational consumption segments.”
Should you invest?
- Exposure to Emerging Sectors: Gain access to high-growth industries like E-commerce, Fintech, and Entertainment, which are driving India’s discretionary spending boom.
- Positive Economic Indicators: With India’s per capita GDP surpassing USD 2,000, consumer spending is becoming increasingly discretionary and aspirational.
- Strong Growth Potential: Data from the Ministry of Statistics indicates that rural and urban India are spending 54 per cent and 61 per cent of their monthly budgets on non-food discretionary items, respectively, showcasing immense growth potential.
- Ease of Investment: The ETF Fund of Fund simplifies investing for those without a demat account, making it accessible to a broader audience.
If you’re looking for exposure to the rapidly evolving consumption habits of Indian consumers, these schemes present a compelling long-term opportunity. The focus on aspirational and discretionary spending segments aligns with India’s growing middle class and rising incomes. While the schemes hold the potential for strong returns, investors should be mindful of market risks and ensure alignment with their financial goals.
Disclaimer: The article is for informational purposes only and not investment advice.