Mirae Asset Mutual Fund forays into Smallcap space through passive offering

Key Highlights:

• India’s first Multi factor-based ETF on Nifty Smallcap250 Index
• 100 small-cap stocks picked from Nifty Smallcap 250 Index based on Liquidity, Quality, and Momentum (LQM) parameters, designed to capture market momentum while aiming to mitigate downside risks
• The above factors seek to capture market momentum while targeting lower drawdowns
• It seeks to offer a rule-based, sector-agnostic, diversified portfolio with low stock level concentration

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.”

Established in 2008, Mirae Asset Mutual Fund is one of India’s fastest-growing fund houses. Mirae Asset Investment Managers (India) Pvt. Ltd. is the Asset Management Company (“AMC”) of Mirae Asset Mutual Fund

As a pivotal player within Mirae Asset Global Investments, operating across 14 countries, Mirae Asset Investment Managers (India) Pvt. Ltd. is dedicated to collaborative management, offering a fully diversified investment platform. The AMC has over 53 schemes available for investors spread across Equity funds, Debt funds, Hybrid Funds, and ETF funds. With expertise drawn from our global professionals, Mirae Asset Mutual Fund caters to clients’ evolving needs with innovative solutions across various asset classes, striving to align portfolios with investment objectives for sustainable growth and success.

Source for all data: ACE MF, NSE; Data as on Jan 31, 2024

Investors may note that they will be bearing the recurring expenses of the underlying Scheme in which Fund of Fund Scheme makes investment in addition to the expenses of the Fund of Fund Scheme.

Pursuant to Clause 2.7.1. iii. of SEBI Master Circular dated May 19, 2023, the investment universe for equity schemes i.e. Small Cap: 251st company onwards in terms of full market capitalization.

Please consult your financial advisor or mutual fund distributor before investing.
The Product Labelling assigned during the NFO is based on internal assessment of the scheme characteristics or model portfolio and the same may vary post NFO when the actual investments are made.

For further information about other schemes (Type of scheme, product labelling and performance of the fund) please visit the website of the AMC: www.miraeassetmf.co.in

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.