Mirae Asset MF to roll out Nifty MidSmallcap400 Momentum Quality 100 ETF: Launch date, minimum investment, other key details to know

New fund offer (NFO) news, Mirae NFO launch date, minimum investment: Mirae Asset Mutual Fund on Saturday announced the launch of Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF, an open-ended scheme replicating and tracking the Nifty MidSmallcap400 Momentum Quality 100 Total Return index. The fund house said the product is the country’s first mutual fund scheme in the ‘mid and smallcap’ category where the underlying portfolio will consist of 50 midcap and smallcap stocks each. 

Here are five key things to know about the Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF scheme:

• The fund house has picked the 100 stocks (50 each from midcap and smallcap segments) from based on a host of factors including quality and momentum. 
• The parameters seek to capture market momentum while targeting lower draw-downs, Mirae Asset MF said in a press release. 
• The MF scheme aims to offer investors exposure to high-growth potential companies within the mid and small-cap segments of the market, it said.
• The Nifty MidSmallcap400 Momentum Quality 100 Total Return gauge seeks to unlock huge opportunities present in midcap and smallcap segments by having an equal number of stocks from both segments in a 100-stock portfolio at the time of rebalancing. 
• Investors may stand to gain as the portfolio seeks potential growth with exposure of the smallcap segment with risk mitigation due to the presence of midcap stocks, it added. 

Mirae Asset also announced the launch of Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF Fund of Fund, an open-ended fund of funds (FOF) scheme investing in units of Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF and thus providing a Fund of Fund route for investors to take exposure in this portfolio. 

New fund offer (NFO) launch dates

The new fund offer (NFO) for Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF will open for subscription on May 6, 2024, and close on May 17, 2024. 

The Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF fund of funds will open for subscription on May 10, 2024, and close on May 24, 2024. 

Both schemes will be managed by Ekta Gala and Vishal Singh.

NFO minimum investment

Both schemes, the Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF and the Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF FOF, will be available at a minimum investment of Rs 5,000 (subsequent investments in multiples of Re 1 thereof).

"We are excited to introduce a first-of-its-kind ETF and Fund of Fund for investors that focuses on both mid and smallcap companies, selected based on smart beta factors. The underlying portfolio targets highly profitable companies with low leverage and stable earnings growth which have given relatively higher risk adjusted returns in the last 6 month and 1 year period,” said Siddharth Srivastava, Head-ETF Product and Fund Manager at Mirae Asset Investment Managers. 

What is a new fund offer (NFO)?

A new fund offer represents the initial offering of units for a new mutual fund scheme to the public. It provides investors with a unique opportunity to invest in a fund at its inception stage.

Here are some of the key advantages of investing in an NFO:

• Lower NAV: NFOs are launched at an initial NAV of INR 10, making them an affordable option for investors.
• Potential for growth: Investing early in an NFO allows investors to benefit from potential capital appreciation as the fund grows.
• Diversification: NFOs offer the chance to diversify a portfolio by gaining exposure to different asset classes or market segments.
• Fresh investment theme: NFOs often focus on innovative investment themes or strategies, providing investors with a fresh perspective.
• Professional management: NFOs are managed by experienced fund managers, ensuring expert handling of investments.