Mirae Asset Mutual Fund launched Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund, a fund of fund scheme investing in units of Mirae Asset Nifty200 Alpha 30 ETF. The scheme will invest in 30 stocks selected from its parent Nifty 200 index based on their alpha score.
NFO Details
The New Fund Offer (NFO) for the scheme runs from July 8, 2024, to July 22, 2024. The scheme will re-open for continuous sale and repurchase from July 29, 2024.
The minimum lump sum investment amount is Rs 5,000 and in multiples of Re 1 thereafter. The minimum Systematic Investment Plan amount is Rs 500 and in multiples of Re 1 thereafter.
Exchange Traded Funds (ETFs) are passive mutual fund schemes that have no active management involved Thus they come with a low expense ratio. It tracks the performance of an index or commodity and is listed on stock exchanges, thus providing investors the opportunity to buy and sell them.
Since ETFs are traded on the stock exchange, one must have a demat account to invest in them. So as an alternative route, Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund can be considered if you wish to invest in the Mirae Asset Nifty200 Alpha 30 ETF without using a broking or a demat account.
Investment Philosophy
Says Siddharth Srivastava, Head-ETF Products, Mirae Asset Investment Managers (India) Pvt. Ltd., “This product uses the alpha and momentum strategy, an invest in 30 large and mid-cap stock vetted based on their ‘alpha score’ rather than the usual free float market cap criteria."
Alpha means a ‘persistence’ factor i.e. which seeks to benefit from continued latest trends in the market. Weighing stocks on this basis will lead to the index remaining unbiased towards large or midcap stocks. To capture the latest market trends, historically the strategy has led to higher portfolio churns to capture in-favour segments and stocks. So investors should be mindful of the increased volatility associated with this index.
The portfolio is reviewed every quarter and has exhibited dynamic rotation between sectors and large and midcap stocks by capturing the latest market trends.
