NFO Alert: Mirae Asset Investment Managers Launches Two New Index Funds

Mirae Asset Investment Managers (India) Pvt. Ltd. announced the launch of two new funds, namely the Mirae Asset Nifty 50 Index Fund and the Mirae Asset Nifty LargeMidcap 250 Index Fund.

As index funds, they are passively managed and aim to mirror their respective indices; the Nifty 50 Index Fund will replicate the Nifty 50 Total Return Index, and the Nifty LargeMidcap 250 Index Fund will mirror the Nifty LargeMidcap 250 Total Return Index. These indices are reconstituted semi-annually based on the market capitalisation of their constituent companies.

NFO Details

Both funds' NFOs will run from October 10, 2024, to October 18, 2024. They will reopen for continuous sale and repurchase on October 25, 2024. Both funds require a minimum initial investment of Rs. 5,000 and do not have an exit load.

Investment Philosophy

The Nifty 50 Index Fund is designed to match the performance of the Nifty 50 Total Return Index, which is considered a barometer of Indian Stock markets. It includes 50 large blue-chip companies from 15 different sectors, thus enabling sectoral diversification.

Similarly, the Nifty LargeMidcap 250 Index Fund seeks to replicate the performance of the Nifty LargeMidcap 250 Total Return Index, which covers large and mid-cap companies listed on the NSE, offering broad-based exposure to the Indian equity market. As much as 50 per cent of weight will be allocated to both large-cap and mid-cap space respectively.  The Nifty LargeMidcap 250 index currently captures 91 basic industries through 100 large-cap and 150 midcap companies, the fund house said.

Siddharth Srivastava, Head – ETF Product and Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd., emphasized that these funds offer a cost-effective way to access blue-chip companies and gain exposure to the stability and growth potential of large and mid-cap companies.

The Nifty 50 Index Fund and the Nifty LargeMidcap 250 Index Fund can be a cost-effective investment in investors' core portfolios because of the low expense ratio of index funds.