Mirae Asset Mutual Fund forays into Smallcap space through passive offering
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Mirae Asset Mutual Fund announces India’s first Multi factor-based ETF on Nifty Smallcap250 Index, ‘Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF’, an open-ended scheme replicating/tracking Nifty Smallcap 250 Momentum Quality 100 Total Return Index, and the ‘Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF Fund of Fund’, an open-ended fund of fund scheme investing in units of Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF. Mirae Asset Mutual Fund aims to provide investors with sector-agnostic exposure within the smallcap category by leveraging a combination of factors.
The New Fund Offer (NFO) for Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF will open for subscription on February 12, 2024 and close on February 21, 2024. While Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF Fund of Fund will open for subscription on February 15, 2024 and close on February 28, 2024. Both are open-ended schemes benchmarking the Nifty Smallcap 250 Momentum Quality 100 Total Return Index. The schemes will be managed by Ms. Ekta Gala and Mr. Vishal Singh.
The minimum initial investment during NFO in both the schemes will be Rs 5,000 and multiples of Re 1 thereafter.
Smallcap stocks may be considered to have potential and when further filtered with parameters like Liquidity, Momentum, and Quality (LQM), they may present a unique asset class seeking wealth creation. Mirae Asset Mutual Fund has experience in developing innovative passive products, and this ETF aims to incorporate multiple aspects of factor investing, utilizing systematic rule-based approaches that aims to pursue a desired performance profile.
Speaking on the NFO Launch, Siddharth Srivastava, Head – ETF Product and Fund Manager, said, “By focusing on three tried and tested pillars of Liquidity, Quality, and Momentum (LQM), this is a first-of-its-kind multi-factor product in the smallcap segment, which will seek to track a robust portfolio of select 100 smallcap stocks from Nifty Smallcap 250 Index, with an endeavour for potentially lower drawdowns. At current market valuations, the investor may invest in a lumpsum manner or through Systematic Investment Plan (SIP), but with a long-term investment horizon.”
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