Mirae Asset Investment Managers (India) has launched two new index funds — Mirae Asset Nifty 50 Index Fund (An open-ended scheme replicating/tracking Nifty 50 Total Return Index) and Mirae Asset Nifty LargeMidcap 250 Index Fund (An open-ended scheme replicating/tracking Nifty LargeMidcap 250 Total Return Index).
The Mirae Asset Nifty 50 Index Fund is designed to generate returns that are in line with the performance of the Nifty 50 Total Return Index. The Nifty 50 Index, regarded as a key barometer of the Indian stock market, comprises 50 large blue-chip companies, providing investors with diversified exposure across 15 sectors.
Mirae Asset Nifty LargeMidcap 250 Index aims to generate returns, before expenses, that are commensurate with the performance of Nifty LargeMidcap 250 Total Return Index. The index aims to reflect the performance of all large cap and all mid cap companies listed at NSE with 50% weight allocated to each segment.
The 250 stocks of Nifty LargeMidcap 250 Index are the combination of the universe of stocks forming part of Nifty 100 and Nifty Midcap 150 Indices, offering a broad-based exposure to the Indian equity market.
The New Fund Offer (NFO) for Mirae Asset Nifty 50 Index Fund and Mirae Asset Nifty LargeMidcap 250 Index Fund opened on October 10, 2024, and closes on October 18, 2024. Both the schemes will re-open for continuous sale and repurchase on October 25, 2024.
Both funds will be managed by Ekta Gala and Vishal Singh.
The minimum initial investment in both funds will be Rs. 5,000/- and multiples of Re. 1/- thereafter during the NFO.
“The Nifty 50 Index represents the evolving landscape of India’s large-cap segment. With the Mirae Asset Nifty 50 Index Fund, investors may benefit from a cost-effective avenue to access the top 50 blue-chip companies listed on the NSE. On the other hand, the Mirae Asset Nifty LargeMidcap 250 Index Fund aims to offer investors the opportunity to gain exposure to the stability and growth potential of large and midcap companies with 50% exposure to each market cap segments leading to a diversified and equal participation in both segments,” said Siddharth Srivastava, Head – ETF Product and Fund Manager, Mirae Asset Investment Managers (India).
Nifty 50 Index fund and Nifty LargeMidcap 250 index funds has potential to form part of investors core portfolio at a relatively lower cost and without the presence of active fund manager risk.
While Nifty 50 Index currently captures 29 basic industries through 50 large cap stocks, the Nifty LargeMidcap 250 index currently captures 91 basic industries through 100 large cap and 150 midcap companies.
Both indices are reconstituted on a semi-annual basis and hence consistently evolves to capture the evolving landscape of Indian equity market.
For an investment horizon of 5 years, Nifty 50 Index has generated a approximate SIP return of 22.1% and lumpsum investment made would have generated a return of 19.4%.
As on September 5, 2024, the valuations of the Nifty 50 index are at 22.97x, which is at a premium of 6.84% compared to its 5- year average of 21.50x.
First Published: Oct 11 2024 | 11:21 AM IST