The Mirae Asset Nifty Metal ETF and the Mirae Asset Nifty PSU Bank ETF are two new exchange-traded funds (ETFs) that provide additional investment options to the Mirae Asset Mutual Fund. The New Fund Offer for the Nifty Metal ETF begins on September 20, 2024, while the PSU Bank ETF begins on September 24, 2024. Both NFOs will close on September 30, 2024.
Mirae Asset Nifty Metal ETF
The Mirae Asset Nifty Metal ETF is an open-ended product designed to mirror or track the Nifty Metal Total Return Index. This index includes 15 firms from India's metals and mining sector that extract, process, and distribute important metals such as iron ore, steel, aluminium, zinc, and copper. The fund's goal is to provide returns that are consistent with the index's performance, subject to tracking error.
Siddharth Srivastava, Head of ETF Products at Mirae Asset, stated, “The Nifty Metal ETF will allow investors to take either tactical exposure based on a short-term view on metal and commodity cycle or a long-term exposure due to India’s focus on infrastructure and manufacturing.”
The fund's minimum initial investment is Rs 5,000, with additional contributions allowed in multiples of Rs 1. The fund has no entry or exit loads and is offered in Regular and Direct Plans, with both giving solely a Growth Option.
Mirae Asset Nifty PSU Bank ETF
The Mirae Asset Nifty PSU Bank ETF seeks to replicate or track the Nifty PSU Bank Total Return Index, which consists of Indian public sector banks listed on the National Stock Exchange (NSE). The fund offers investors focused exposure to the PSU banking sector, which has witnessed significant improvements in profitability and asset quality in recent years.
Like the Nifty Metal ETF, the PSU Bank ETF requires a minimum investment of Rs 5,000, with additional investments allowed in multiples of Rs 1. The fund is available under Regular and Direct Plans, offering only a Growth Option.
Who Should Invest?
Mirae Asset Nifty Metal ETF
According to Mirae Asset, this ETF is intended for investors looking to acquire exposure to the metals industry, which is expected to rise owing to rising infrastructure investment and manufacturing activity. It is especially ideal for businesses looking to capitalise on the long-term demand for metals generated by India's infrastructural development and industry growth.
Mirae Asset Nifty PSU Bank ETF
Mirae Asset highlights that this ETF is ideal for investors seeking focused exposure to public sector banks, which have shown significant improvements in asset quality and profitability. It’s suited for those looking to capitalize on the sector’s turnaround and growth potential.
