Mirae Asset Mutual Fund has announced the launch of Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund. This is an open-ended fund of fund scheme investing in units of Mirae Asset Nifty200 Alpha 30 ETF.
This is valuable opportunity for investors looking to invest in the Mirae Asset Nifty200 Alpha 30 ETF without requiring a broking or a Demat account, according to the asset management firm.
Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund NFO dates
Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund’s NFO will open on July 8 and close on July 22, 2024. The scheme will re-open for continuous sale and repurchase from July 29, 2024.
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Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund managers
Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund will be managed by Ekta Gala and Vishal Singh. Minimum investment should be Rs 5,000 and in multiples of Re 1 thereafter. Systematic Investment Plan (SIP) can be set up with an investment of Rs 500 and in multiplies of Re 1 thereafter.
Siddharth Srivastava, Head-ETF Products, Mirae Asset Investment Managers (India), said, “Mirae Asset Nifty200 Alpha 30 ETF Fund of Fund is a strategic addition to our existing product portfolio, which seeks to provide a valuable opportunity for investors who wish to invest in the Mirae Asset Nifty200 Alpha 30 ETF without requiring a broking or a Demat account.”
The portfolio is reviewed on a quarterly basis and has exhibited dynamic rotation between sectors and large and midcap stocks by capturing latest market trends, he informed.
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This product is designed to capture the alpha and momentum strategy. Alpha is simply a ‘persistence’ factor i.e. which seeks to benefit from continued latest trends in the market. By selecting and weighing stocks purely based on ‘Alpha score’, index remains unbiased towards large or midcap stock and seeks to capture the alpha and momentum strategy in a true to label manner.
This index seeks to generate returns by capturing latest market trends and hence has historically exhibited higher portfolio churns in order to capture in-favour segments and stocks. However, investors should be aware of the higher drawdowns and increased volatility associated with this index, and consider it from a long-term investment perspective. Investors may consider this product if they aim to capitalize on the momentum and alpha strategy after evaluating their risk profile.