Mirae Asset Mutual Fund unveils ETFs and Fund of Funds based on IPO and Equal Weight Strategy
Mirae Asset Mutual Fund has launched four new investment schemes, catering to two distinct themes—Initial Public Offerings (IPOs) and an equal-weighted approach to India’s top 200 stocks.
The newly introduced funds include:
- Mirae Asset BSE Select IPO ETF
- Mirae Asset BSE Select IPO ETF Fund of Fund
- Mirae Asset BSE 200 Equal Weight ETF
- Mirae Asset BSE 200 Equal Weight ETF Fund of Fund
These offerings provide investors with a structured way to participate in the growing IPO segment while also offering a well-diversified approach to investing in large- and Mid-Cap stocks.
The New Fund Offer (NFO) for both ETFs begins on February 24, 2025, and closes on March 5, 2025, while the Fund of Funds (FoFs) opens for subscription on February 25, 2025, and closes on March 11, 2025.
Fund Details
Mirae Asset BSE Select IPO ETF & Fund of Fund
This scheme is designed to give investors exposure to India’s booming IPO market and spin-off companies that make it to the top 500 market cap list.
- Stocks are considered for inclusion three months post-listing to avoid initial volatility.
- A 5 per cent stock cap is applied to maintain diversification.
- Newly listed stocks remain in the index for five years to capture their short- to mid-term growth potential.
- The fund passively tracks the BSE Select IPO Total Return Index, making it a cost-efficient and transparent way to gain exposure to IPOs.
With India’s IPO market witnessing significant growth across fintech, auto, e-commerce, healthcare, and new-age businesses, this ETF and Fund of Fund provide a disciplined alternative to investing in new listings, especially in cases of high oversubscription.
Fund Managers: Ekta Gala and Akshay Udeshi.
Mirae Asset BSE 200 Equal Weight ETF & Fund of Fund
This strategy invests equally in all 200 companies in the BSE 200 Index, ensuring balanced exposure across Large-Cap and mid-cap stocks.
- Equal weight allocation ensures that both large-cap and mid-cap segments receive 50 per cent weightage each.
- Large-cap stocks offer stability, while mid-caps provide growth potential.
- The broad-based exposure reduces stock-specific risk while capturing the performance of India’s top industry leaders.
- This strategy is widely adopted globally and provides an efficient, passive investment alternative.
Fund Managers: Ekta Gala and Vishal Singh.
Management Comments
Commenting on the launch, Siddharth Srivastava, Head-ETF Product & Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd., said: “IPOs and spin-offs present investors with opportunities to invest in companies with significant growth potential. However, investing in such new listings carries risks. With Mirae Asset BSE Select IPO ETF & Fund of Fund, we offer a more structured and diversified way to gain exposure to newly listed companies post-IPO.”
He further added:“The Mirae Asset BSE 200 Equal Weight ETF & Fund of Fund takes a disciplined approach by equally distributing weight across the top 200 companies, reducing stock-specific risk and ensuring a well-balanced market exposure. This strategy works particularly well in a broad-based market rally.”
Conclusion
Mirae Asset’s new fund launches provide investors with unique opportunities in both the IPO market and a broad-based equal-weighted strategy. Whether investors seek exposure to newly listed companies or prefer a diversified market approach, these funds offer cost-effective, passive investment solutions. With growing interest in India’s IPO landscape and the increasing popularity of equal-weight strategies, these funds could be valuable additions to an investor’s portfolio.
Disclaimer: The article is for informational purposes only and not investment advice.