• Banking / Finance corporate

Mirae Asset Mutual Fund launches Mirae Asset Nifty 200 Alpha 30 ETF NFO

• nationalherald
• October 10, 2023

by Prashant Kapadia/NHN

 (An open-ended scheme replicating/tracking Nifty200 Alpha 30 Total Return Index)

Mumbai, October 09, 2023 : Mirae Asset Mutual Fund, one of the fastest-growing fund houses in India, today announced the launch of Mirae Asset Nifty 200 Alpha 30 ETF (An open-ended scheme replicating/tracking Nifty 200 Alpha 30 TRI). The Nifty 200 Alpha 30 Index consists of 30 large and midcap stocks selected from its parent Nifty 200 index based on ‘Jensen’s Alpha’. The stocks are weighted in Index based on their Alpha score i.e. stocks with higher alpha (outperformance) will get higher weight in the portfolio.

The New Fund Offer (NFO) opens on October 09, 2023 and closes on October 18, 2023. The fund managers are Ms Ekta Gala and Mr. Vishal Singh. The minimum application amount during NFO period is Rs. 5000 and in multiple of Rs 1 thereafter. Listing on NSE and BSE will be done within 5 days of allotment.

Mirae Asset Nifty 200 Alpha 30 ETF, a Smart Beta ETF, will seek to combine the best of both active and passive investments. Smart Beta index strategies capture factors like alpha, low volatility, quality etc., and seek to select and weight stocks based on these factors in order to target a certain performance behaviour and risk and return profile.  The ETF provides a systematic rules-based and a cost-effective investment vehicle to invest in these smart beta indices. .

Smart beta ETFs are very popular investment products at the global level. There are 1281 smart beta equity ETFs with 2655 listings with asset under management of $ 1.27 trillion as at the end of February 2023.

Commenting on the new NFO, Mr. Siddharth Srivastava, Head ETF Products, Mirae Asset Investment Managers said “Mirae Asset Mutual Fund has been in the forefront of introducing several innovative ETFs to Indian investors in the last few years. Mirae Asset Nifty 200 Alpha 30 ETF will seek to capture alpha and momentum strategy. The portfolio will consist of 30 large and midcap stocks, where selection and weighting are based on the stock’s alpha instead of free float market cap. The frequent quarterly rebalancing will seek to capture market trends and performing stocks, which is why portfolio exposure towards large and midcap segment and towards sector will evolve depending upon the performance cycle. In a growing market like India, Alpha strategy has done well historically in the long term especially in the bull markets, though with higher volatility. Investor may seek to invest in this product if they want to capture momentum/alpha strategy after assessing their risk profile. ”.

Scheme re-opens for continuous Sale & Repurchase on 23^rd October, 2023.