Mirae Asset Mutual Fund launches two new ETFs: Nifty Metal and PSU Bank - Details inside

Focused investment opportunities in India's growing Metal and PSU Banking sectors

Mirae Asset Investment Managers (India) Pvt Ltd launched two exciting New Fund Offers (NFOs) – Mirae Asset Nifty Metal ETF and Mirae Asset Nifty PSU Bank ETF. These open-ended schemes aim to track their respective Total Return Indices, providing investors a chance to diversify and capitalise on growth in India's metal and public sector banking sectors.

Mirae Asset Nifty Metal ETF

• Objective: To generate returns before expenses that match the Nifty Metal Total Return Index, subject to tracking error.
• Index Exposure: Includes 15 key stocks from the Indian metals and mining sector, focusing on companies involved in the extraction, processing, and distribution of iron ore, steel, aluminium, zinc, copper, and more.
• NFO Period: Opens on September 20, 2024, and closes on September 30, 2024.
• Continuous Trading: Reopens for sale and repurchase on October 04, 2024.

Mirae Asset Nifty PSU Bank ETF

• Objective: To generate returns before expenses that align with the Nifty PSU Bank Total Return Index, subject to tracking error.
• Index Exposure: Features Indian Public Sector Undertaking (PSU) bank stocks listed on the National Stock Exchange (NSE), reflecting the sector's performance.
• NFO Period: Opens on September 24, 2024, and closes on September 30, 2024.
• Continuous Trading: Reopens for sale and repurchase on October 03, 2024.

Key Highlights

• Fund Managers: Both funds will be managed by Ekta Gala and Akshay Udeshi.
• Minimum Investment: Rs 5,000/- during the NFO period, with increments of Re. 1 thereafter.

Growth Potential

• Nifty Metal ETF: Targets India’s growing infrastructure and manufacturing sectors, with significant demand for metals due to Steel Production Linked Incentive (PLI) schemes and infrastructure projects expected to contribute 25-30 per cent of metal demand over the next decade.

• Nifty PSU Bank ETF: Capitalises on the improved asset quality and profitability of PSU banks, offering focused exposure to a sector poised for continued growth and financial inclusion.

Management Comments
Siddharth Srivastava, Head – ETF Products and Fund Manager at Mirae Asset Investment Managers, said, "The Nifty Metal ETF allows investors to gain exposure based on short-term or long-term views on metal and commodity cycles. The PSU Bank ETF focuses on the public banking sector, which has seen strong profitability growth and asset quality improvements."

Should you invest in these ETFs?

• Strategic Exposure: Gain targeted access to India’s booming metals and PSU banking sectors.
• Diversified Portfolio: Benefit from a diverse index of leading companies in the respective industries.
• Long-Term Growth Potential: Both sectors are well-positioned to support India’s economic growth.

Conclusion
Investors can take advantage of these focused ETF opportunities at a relatively low cost, aligning with India's infrastructure and financial growth trajectories.

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