The NFO of Mirae Asset Nifty Next 50 ETF opens today, that is January 13, and will close on January 21. The scheme will re-open for continuous sale and re-purchase from January 27.
The investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Nifty Next 50 Total Return Index, subject to tracking error.
The find will be managed by Bharti Sawant.
“We have seen huge polarization in the market with 10 stocks contributing almost to the entire returns of the index in the last calendar year. Nifty Next 50 Index is a fairly diversified index which has sector and stock concentration significantly lower than the Nifty 50 Index, and gives investors the opportunity to participate in the potential returns of future bluechip companies,” said Swarup Mohanty, CEO of Mirae Asset Investment Managers.
“The Nifty Next 50 Index has historically given higher returns with similar return to risk profile as compared to Nifty 50 Index in longer horizon (5, 7,10 year period, as on Dec 31, 2019) and better returns than Nifty Midcap 100 Index across all major horizons (6m,1,3,5,7,10 year period, as on Dec 31, 2019). In the last two years we have seen huge divergence in the returns between Nifty 50 and Nifty Next 50 Index, which we believe should normalize and hence we believe this is a good time for investors to participate in performance of Nifty Next 50 index. This fund launch is in line with our strategy of having low cost ETF products along with few innovative ETF Funds, that we plan to launch in the coming quarters,” Mohanty added.
Mirae Asset Mutual Fund currently manages an average AUM of Rs 41,887 crore as on 31st December 2019. The AMC manages more than 21 lakh investor folios (including more than 8 lakh SIP investors) as on 30th November 2019. They currently manage 7 equity funds, 5 debt funds, 2 hybrid funds, 1 close ended fixed maturity plan and 1 ETF.