Mirae Asset Mutual Fund forays into Smallcap space through passive offering

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Mirae Asset announces the launch of ‘Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF’ and ‘Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF Fund of Fund’

Key Highlights:

  • India’s first Multi factor-based ETF on Nifty Smallcap250 Index
  • 100 small-cap stocks picked from Nifty Smallcap 250 Index based on Liquidity, Quality, and Momentum (LQM) parameters, designed to capture market momentum while aiming to mitigate downside risks
  • The above factors seek to capture market momentum while targeting lower drawdowns
  • It seeks to offer a rule-based, sector-agnostic, diversified portfolio with low stock level concentration

MUMBAI, India, Feb. 13, 2024 /PRNewswire/ — Mirae Asset Mutual Fund announces India’s first Multi factor-based ETF on Nifty Smallcap250 Index, Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF, an open-ended scheme replicating/tracking Nifty Smallcap 250 Momentum Quality 100 Total Return Index, and the ‘Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF Fund of Fund’, an open-ended fund of fund scheme investing in units of Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF. Mirae Asset Mutual Fund aims to provide investors with sector-agnostic exposure within the smallcap category by leveraging a combination of factors. 

The New Fund Offer (NFO) for Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF opened for subscription on February 12, 2024 and will close on February 21, 2024. While Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF Fund of Fund will open for subscription on February 15, 2024 and close on February 28, 2024. Both are open-ended schemes benchmarking the Nifty Smallcap 250 Momentum Quality 100 Total Return Index. The schemes will be managed by Ms. Ekta Gala and Mr. Vishal Singh.

The minimum initial investment during NFO in both the schemes will be Rs 5,000 and multiples of Re 1 thereafter.

Smallcap stocks may be considered to have potential and when further filtered with parameters like Liquidity, Momentum, and Quality (LQM), they may present a unique asset class seeking wealth creation. Mirae Asset Mutual Fund has experience in developing innovative passive products, and this ETF aims to incorporate multiple aspects of factor investing, utilizing systematic rule-based approaches that aims to pursue a desired performance profile.

Speaking on the NFO Launch, Siddharth Srivastava, Head – ETF Product and Fund Manager, said, “By focusing on three tried and tested pillars of Liquidity, Quality, and Momentum (LQM), this is a first-of-its-kind multi-factor product in the smallcap segment, which will seek to track a robust portfolio of select 100 smallcap stocks from Nifty Smallcap 250 Index, with an endeavour for potentially lower drawdowns. At current market valuations, the investor may invest in a lumpsum manner or through Systematic Investment Plan (SIP), but with a long-term investment horizon.”

About Mirae Asset Investment Managers (India) Pvt. Ltd.

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 Jan 31, 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.

NSE Indices Ltd Disclaimer: NSE INDICES LIMITED do not guarantee the accuracy and/or the completeness of Nifty Smallcap 250 Momentum Quality 100 Index or any data included therein and NSE INDICES LIMITED shall have not have any responsibility or liability for any errors, omissions, or interruptions therein NSE INDICES LIMITED does not make any warranty, express or implied, as to results to be obtained by the Issuer, owners of the product(s), or any other person or entity from the use of Nifty Smallcap 250 Momentum Quality 100 Index or any data included therein NSE INDICES LIMITED makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data included therein Without limiting any of the foregoing, NSE INDICES LIMITED expressly disclaim any and all liability for any claims, damages or losses arising out of or related to the Products, including any and all direct, special, punitive, indirect, or consequential damages (including lost profits), even if notified of the possibility of such damages.

BSE/NSE Disclaimer:  Every person who desires to apply for or otherwise acquires any unit of this Fund may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription/ acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever.

Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Investment Managers (India) Private Limited (AMC); Sponsor: Mirae Asset Global Investments Company Limited.

The information contained in this document is compiled from third party and publically available sources and is included for general information purposes only. There can be no assurance and guarantee on the yields. Views expressed by the Fund Manager cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. Whilst Mirae Asset Investment Managers (India) Private Limited (the AMC) shall have no responsibility/liability whatsoever for the accuracy or any use or reliance thereof of such information. The AMC, its associate or sponsors or group companies, its Directors or employees accepts no liability for any loss or damage of any kind resulting out of the use of this document. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein. Any reliance on the accuracy or use of such information shall be done only after consultation to the financial consultant to understand the specific legal, tax or financial implications.

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.

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

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

Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF is suitable for investors who are seeking-

  • Returns that commensurate with the performance of Nifty Smallcap 250 Momentum Quality 100 Total Return Index (TRI)
  • Investments in equity securities covered by Nifty Smallcap 250 Momentum Quality 100 Total Return Index

Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF Fund of Fund is suitable for investors who are seeking-

  • Investments predominantly in units of Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF
  • To generate long term capital appreciation/income

Investors understand that their principal will be at very high risk

Investors should consult their financial advisors if they are not clear about the suitability of the product. 

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 actual assessment is done.

 

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