Mirae Asset Mutual Fund launches Funds based on Select IPO Theme & Equal Weight

Mirae Asset BSE Select IPO ETF seeks to provide exposure to India’s dynamic IPO market & spin offs.

Mirae Asset BSE 200 Equal Weight ETF seeks to provide equal exposure to Top 200 stocks listed on BSE

Fund of Fund (FoF) for both ETFs will allow investors to invest in the schemes via normal mutual fund route

NFO for both ETFs to open on February 24, 2025, and the same for both FoFs will open on February 25, 2025

Mirae Asset Investment Managers (India) Pvt. Ltd. announces launch of New Fund Offers (NFOs) for 2 new ETFs and 2 new Fund of Funds based on these ETFs providing two distinct investment solutions to the investors 1) A structured and diversified way to participate in IPO segment and new Spin offs, 2) An Equal weight strategy based on Top 200 stocks.

The new funds are Mirae Asset BSE Select IPO ETF, an open-ended scheme replicating/tracking BSE Select IPO Total Return Index; Mirae Asset BSE Select IPO ETF Fund of Fund, an open-ended fund of fund scheme investing in units of Mirae Asset BSE Select IPO ETF; Mirae Asset BSE 200 Equal Weight ETF, an open ended scheme replicating/tracking BSE 200 Equal Weight Total Return Index; and Mirae Asset BSE 200 Equal Weight ETF Fund of Fund, an open-ended fund of fund scheme investing in units of Mirae Asset BSE 200 Equal Weight ETF.

The New Fund Offer (NFO) for Mirae Asset BSE Select IPO ETF and Mirae Asset BSE 200 Equal Weight ETF will open for subscription on February 24, 2025 and close on March 05, 2025 and will re-open for continuous sale and repurchase on March 11, 2025. Concurrently, the Mirae Asset BSE Select IPO ETF Fund of Fund and Mirae Asset BSE 200 Equal Weight ETF Fund of Fund will open for subscription on February 25, 2025, and close on March 11, 2025, and will re-open for continuous sale and repurchase on March 19, 2025.

"IPO’s and Spin-offs provide opportunity to investors to participate in companies which may have significant growth potential or in companies which have relatively established business line. Investments in such new listings may or may not deliver expected returns and carry reasonable risk. With Mirae Asset BSE Select IPO ETF & Fund of Fund, we aim to provide a more structured, disciplined and diversified approach to take exposure in new companies post listing.,” said Mr. Siddharth Srivastava, Head-ETF Product & Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd. “Mirae Asset BSE 200 Equal Weight ETF & Fund of Fund, is an equal weighted strategy where each stock is assigned equal weight in a portfolio consisting of 100 large cap and top 100 midcap companies. Due to equal distribution, effectively the fund will also have equal exposure to large and midcap segment thus providing a diversified and equal exposure to Top 200 stocks. This strategy seeks to reduce stock specific risk and typically works if there is a broad-based diversified performance in the market”

The schemes aim to provide investors with a structured approach for gaining exposure to recently listed Initial Public Offerings (IPOs) and spin-off companies which falls within Top 500 companies by market cap.

Newly listed stocks will be considered for inclusion after 3 months of listing, seeking to avoid initial volatility. Stock capping of 5% will be applied to ensure diversification. New listings will remain in the index for 5 years, allowing index to capture short to medium term growth trend.

By leveraging a passive investment strategy, the Mirae Asset BSE Select ETF and Fund of Fund offers a transparent and cost-efficient way to gain exposure to newly listed stocks without the complexities of actively tracking individual offerings. The quarterly rebalancing mechanism will aim to ensure that the portfolio remains aligned with evolving market trends and captures new listings

With India ranking among the top markets globally in terms of new IPOs, the introduction of this innovative investment solution comes at an opportune time. As companies across market cap, across industries like fintech, auto, e-commerce, healthcare, new age businesses etc continues to go public, investors now have an efficient tool to participate in the growth story of new listings. As access to IPOs have become difficult with huge size of over subscription, the Mirae Asset BSE Select IPO ETF & Fund of Fund seeks to provide investors a disciplined way of investing in new companies post listing.

The schemes will be managed by Ms. Ekta Gala and Mr. Akshay Udeshi.

Equal weight strategy is about investing equally in companies forming part of the BSE 200 Equal Weight Index. The intent is to provide equal exposure and equal opportunity to all companies to create wealth. This is very popular investment strategy globally, especially in passive segment.

The Mirae Asset BSE 200 Equal Weight ETF and Fund of Fund will provide equal weightage and hence equal exposure to all 200 constituents forming part of BSE 200 Index, covering all 100 large cap companies and top 100 midcap companies, essentially capturing major industries and industry leaders of the Indian stock market and reducing stock specific risk. Due to equal weight distribution, event at a market cap level, all 100 large cap companies capture 50% of the weight and top 100 mid cap companies capture 50% of the weight cumulatively, with large cap provide stability, especially during market volatility while mid cap companies provide high growth potential.

Mirae Asset BSE 200 Equal Weight ETF and Fund of Fund seeks to offer a cost-effective opportunity to capitalise on broad based growth in a disciplined manner by providing equal opportunity to each and every company in the portfolio.

The schemes will be managed by Ms. Ekta Gala and Mr. Vishal Singh.

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 19 countries, Mirae Asset Investment Managers (India) Pvt. Ltd. is dedicated to collaborative management, offering a fully diversified investment platform. The AMC has 72 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.

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

Please consult your financial advisor or mutual fund distributor before investing

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