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Mirae Asset Mutual Fund announces the launch of India’s first mutual fund scheme on Mid and Smallcap segment where the underlying portfolio will consist of 50 Midcap and 50 Smallcap stocks, selected basis quality, momentum and liquidity parameters. The open-ended scheme, ‘Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF’, an open-ended scheme replicating/tracking Nifty MidSmallcap400 Momentum Quality 100 Total Return Index that aims to capture wealth magnifiers and preservers using momentum and quality metrics which might have the potential of creating alpha in the long run. The index seeks to unlock huge opportunities present in both Midcap and Smallcap segment by having an equal number of stocks from both segments in a 100 stock portfolio at the time of rebalancing. Investors may stand to gain as the portfolio seeks potential growth with exposure of Smallcap segment with risk mitigation due to the presence of Midcap stocks.

Mirae Asset is also launching ‘Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF Fund of Fund’, an open-ended Fund of Fund (FOF) scheme investing in units of Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF and thus providing a Fund of Fund route for investors to take exposure in this portfolio.

The New Fund Offer (NFO) for Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF will open for subscription on May 06, 2024 and close on May 17, 2024. Concurrently, the Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF Fund of Fund will open for subscription on May 10, 2024 and close on May 24, 2024. These schemes will be managed by Ms. Ekta Gala and Mr. Vishal Singh.

In both schemes, the minimum initial investment during NFO will be Rs 5,000/- (Rupees Five Thousand) with subsequent investments being multiples of Re 1.

Commenting on the launch, Siddharth Srivastava, Head – ETF Product and Fund Manager, said, "We are excited to introduce a first-of-its-kind ETF and Fund of Fund for investors that focuses on both mid & smallcap companies, selected based on smart beta factors. The underlying portfolio targets highly profitable companies with low leverage and stable earnings growth which have given relatively higher risk adjusted returns in the last 6 month and 1 year period. By investing in these funds, investors will get exposure to both Mid and smallcap companies, but with a risk profile which has been historically more aligned to Midcap segment. At current market valuations, investors may invest in a lumpsum manner in ETF and FOF or through a Systematic Investment Plan (SIP) in FOF, but with a long-term investment horizon.”