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Mirae Asset Mutual Fund has launched new ETF, Mirae Asset Midcap 150 ETF, that replicates the Nifty Midcap 150 Total Return Index.

The New Fund Offer (NFO) period for the Mirae Asset Midcap 150 ETF is from February 24th 2022 to March 4th 2022. The scheme reopens for continuous repurchases and sale from March 11th 2022.

Objective

The fund’s investment objective is to offer investment returns that are closely correlated to the total returns of the stocks that are part of the Nifty Midcap 150 Total Return Index before expenses, subject to tracking errors. However, the scheme does not assure or guarantee that the investment objective will be met.

Mirae Asset Midcap 150 ETF NFO Details

Mirae Asset Midcap 150 ETFDetails
NFO Opening DateFebruary 24th 2022
NFO Closing DateMarch 4th 2022
Re-open DateMarch 11th 2022
Type of FundOpen-ended equity scheme
Fund ManagerMs Ekta Gala
Minimum Investment AmountINR 5000
Minimum Additional Purchase AmountINR 1000 and in the multiples of INR 1
Exit LoadNil
SuitabilityVery High
BenchmarkNifty Midcap 150 TRI
Plans and OptionsRegular Plan & Direct Plan
NOTE:
  • All the investment amounts should be multiple of INR 1/-
  • SIP/SWP/STP are not available under this scheme.

Who Can Invest Mirae Asset Midcap 150 ETF ?

Mirae Asset Midcap 150 ETF best suits investors who wish to earn returns from a portfolio of stocks. Also, the fund aims to replicate its benchmark index Nifty Midcap 150, and closely track it. The securities have the same weightage as they have on the respective indices. The fund is a pure equity fund that invests in midcap stocks. Therefore, investors who are seeking exposure across mid cap stocks and are risk-takers can consider investing in the scheme. Moreover, the scheme is suitable for investors with a longer investment duration of 5+ years.

Fund Manager

Ms Ekta Gala

Ms Gala has been associated with Mirae Asset Mutual Fund for four years. Her primary responsibility includes Dealer and Fund Management. Before joining Mirae Asset MF, she was associated with ICICI Prudential Mutual Fund as an ETF Dealer. She is a Chartered Accountant (CA) and B.com graduate.

Asset Allocation

The following is the indicative asset allocation Mirae Asset Midcap 150 ETF – 

Types of InstrumentsIndicative Allocation MinimumIndicative Allocation MaximumRisk Profile
Securities included in the Nifty Midcap 150 Index95%100%High
Money market  instruments/debt  securities,  Instrumentsand/or units of  debt/liquid schemes of  domestic  Mutual Funds05%Low to Medium

As per the SEBI Regulations, the scheme may participate in securities lending. The following are limits for stock lending – 

  1. Not more than 20% of the net assets are deployed in stock lending.
  2. Not more than 5% of the net assets can be deployed in stock lending to any single approved intermediary. 

Since it is a passive fund, the asset allocation replicates the benchmark composition, and the fund managers do not actively make buy and sell decisions.

Concluding Remarks

Mirae Asset Midcap 150 ETF that replicates the Nifty Midcap 150 Total Return Index. The fund primarily invests in the same stocks and proportions as the Nifty Midcap 150 Index. Therefore, it aims to closely track the benchmark’s return with minimum tracking error. Since the fund invests in midcap stocks, it is a high-risk investment option. Historically performance of the benchmark index shows promising returns. However, past returns do not guarantee future returns.  

Investors who understand and are willing to undertake the risk can invest in this scheme. Furthermore, since it’s a pure equity scheme, it is a good strategy to have a long term investment horizon. Since the fund does not guarantee returns, keeping a close eye on the investments is advisable.

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