NFO Alert: All you need to know about newly launched Mirae Asset Nifty IT ETF

The scheme opened for public subscription on October 13, 2023, and will close on October 18, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment on NSE and BSE.

What kind of mutual fund scheme is this?

This is an open-ended exchange-traded fund scheme replicating/tracking the Nifty IT index.

What is the main objective of investing in this fund?

The investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Nifty IT Total Return Index, subject to tracking error. There is no assurance or guarantee that the investment objective of the scheme will be achieved.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

The asset allocation component will also encompass subscription and redemption cash flows that might remain uninvested for various reasons, such as dividends from underlying securities, rebalancing, mutual funds set aside for the operational expenses of the scheme, or residual amounts resulting from rounding off during execution.

Are there similar mutual funds in the market?

To date, many asset management companies (AMCs) have launched such exchange-traded funds (ETFs), thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:

How will the scheme benchmark its performance?

The Nifty IT index tracks the performance of Indian IT companies, consisting of 10 firms listed on the National Stock Exchange (NSE). This index is calculated using the free float market capitalisation method, with a reference date of January 1, 1996, and a base value of 1000. The index’s level represents the total free float market value of all the stocks in the index compared to a specific base market capitalisation value.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be calculated as under:

• For investors transacting directly with the AMC: No exit load will be levied on redemptions made by Market Maker / Large Investors directly with the AMC.
• For investors transacting on the exchange: Not Applicable

Who will manage this scheme?

Ekta Gala and Vishal Singh are the designated fund managers of this scheme.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk” as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

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Updated: 17 Oct 2023, 11:20 AM IST