Mirae Asset Mutual Fund launches 2 new funds focused on metal, PSU banks – Should you invest?
Mirae Asset Mutual Fund has announced the launch of two new funds – Mirae Asset Nifty Metal ETF and Mirae Asset Nifty PSU Bank ETF.
Mirae Asset Nifty Metal ETF, an open-ended scheme, aims to generate returns, before expenses, that are commensurate with the performance of the Nifty Metal Total Return Index, subject to tracking error.
Mirae Asset Nifty PSU Bank ETF, also an open-ended scheme, tracks Nifty PSU Bank Total Return Index. The ETF aims to generate returns, before expenses, that are commensurate with the performance of the Nifty PSU Bank Total Return Index, subject to tracking error. The Nifty PSU Bank Index comprises Indian Public Sector Undertaking Bank stocks listed on National Stock Exchange (NSE), Mirae Asset Investment Managers (India) Pvt Ltd said in a statement.
Mirae Asset Nifty Metal ETF and Mirae Asset PSU Bank ETF
Nifty Metal Index provides exposure to 15 stocks from Indian metals and mining sector, listed on the National Stock Exchange (NSE). The index consists of companies involved in the extraction, processing, and distribution of metals including iron ore, steel, aluminium, zinc, copper, etc.
Mirae Asset PSU Bank ETF aims to generate returns, before expenses, that are commensurate with the performance of the Nifty PSU Bank Total Return Index, subject to tracking error. The Nifty PSU Bank Index comprises Indian Public Sector Undertaking Bank stocks listed on National Stock Exchange (NSE).
NFO dates of Mirae Asset mutual fund
The New Fund Offer (NFO) for Mirae Asset Nifty Metal ETF opens on September 20, 2024, and closes on September 30, 2024. The scheme will re-open for continuous sale and repurchase on October 04, 2024.
The NFO for Mirae Asset PSU Bank ETF opens on September 24, 2024, and closes on September 30, 2024. The scheme will re-open for continuous sale and repurchase on October 03, 2024.
Both funds will be managed by Ms. Ekta Gala & Mr. Akshay Udeshi. The minimum initial investment in both funds will be Rs 5,000/- and multiples of Re 1/- thereafter during the NFO.
Speaking on the NFO Launch, Siddharth Srivastava, Head – ETF Products and Fund Manager, Mirae Asset Investment Managers (India) Pvt Ltd, said, “The Nifty Metal ETF will allow investors to take either tactical exposure based on short-term view on metal and commodity cycle or a long-term exposure due to India’s focus on infrastructure and manufacturing.”
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“The PSU Bank segment in the last few years has witnessed a significant improvement in asset quality, risk preparedness, and strong turnaround in profitability. The PSU Bank ETF aims to provide focussed exposure to this segment which has the potential to continue on its current track of growth and profitability,” Srivastava added.
The PSU banks have outperformed private sector banks and several other sectoral indices in the past three years driven by a strong turnaround in profitability and asset quality improvement. PSU banks provide wider access to rural and semi-urban India and play a key role in promoting economic growth and financial inclusion, potentially unlocking the next phase of growth. The Nifty Bank Index has a lower allocation toward PSU banks, hence PSU Bank ETF will provide investors a focussed exposure to this segment at a relatively low-cost.