Factor based Mid and Smallcap Fund: Another First of its kind Fund from Mirae Asset Mutual Fund

Key Highlights:

• India’s first fund based on Mid and Smallcap segment
• 50 midcap & 50 smallcap stocks will be picked from Midcap and Smallcap segment based on multiple smart beta factors, i.e. Quality and Momentum
• The above factors seek to capture market momentum while targeting lower drawdowns
• It aims to offer investors exposure to high-growth potential companies within the mid and small-cap segments of the market

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.”

This fund will allow investors to allocate 50-50 in Midcap and Smallcap segment.

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 April 30, 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 and Mid Cap: 101st -250th company in terms of full market capitalization.

Note: 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.

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.

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