New Fund Offer alert: Mirae Asset Mutual Fund launches two new ETFs. Check details for investment

Mirae Asset Mutual Fund has come up with two new exchange-traded funds -- ‘Mirae Asset Nifty Metal ETF’ and ‘Mirae Asset Nifty PSU Bank ETF’. While Mirae Asset Nifty Metal ETF is an open-ended scheme replicating/tracking Nifty Metal Total Return Index, Mirae Asset Nifty PSU Bank ETF is an open-ended scheme replicating/tracking Nifty PSU Bank Total Return Index.
 
Key points

Mirae Asset Nifty Metal ETF

The objective of the Mirae Asset Nifty Metal ETF is to achieve returns that align with the performance of the Nifty Metal Total Return Index, excluding expenses, while also accounting for tracking error.

The Nifty Metal Index offers exposure to 15 stocks within the Indian metals and mining sector listed on the National Stock Exchange (NSE). 

This index encompasses companies engaged in the extraction, processing, and distribution of various metals such as iron ore, steel, aluminum, zinc, copper, and more.

The Nifty Metal Index is designed to reflect the behavior and performance of the metals sector including mining in India.

The minimum initial investment in both funds will be Rs. 5,000/- and multiples of Re. 1/- thereafter during the NFO.

The New Fund Offer (NFO) for Mirae Asset Nifty Metal ETF will open on September 20, 2024, and close on September 30, 2024. The scheme will re-open for continuous sale and repurchase on October 04, 2024.

The upward trajectory of the Indian infrastructure and manufacturing industries has led to a rise in the demand for metals. The implementation of Steel Production Linked Incentive (PLI) Schemes is estimated to attract investments totaling approximately INR 30,000 Cr. This information is sourced from data available as of December 31, 2023, provided by Trading Economics, the Ministry of Mines, and Care Ratings. The latest forecast indicates a substantial growth in capital inflow.

The surge in infrastructure development is projected to account for 25-30% of the metal demand over the next ten years. The Nifty Metal ETF aims to offer targeted exposure to companies actively involved in this sector, providing investors with opportunities for potential growth and diversification.

Mirae Asset PSU Bank ETF

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 of Indian Public Sector Undertaking Bank stocks listed on National Stock Exchange (NSE).

The minimum initial investment in both funds will be Rs. 5,000/- and multiples of Re. 1/- thereafter during the NFO.

The NFO for Mirae Asset PSU Bank ETF will open on September 24, 2024, and close on September 30, 2024. The scheme will re-open for continuous sale and repurchase on October 03, 2024.

The Public Sector Undertaking (PSU) banks have shown superior performance compared to private sector banks and various other sectoral indices over the last three years. This performance was primarily attributed to a remarkable improvement in profitability and asset quality within the PSU banking sector.

PSU banks are instrumental in extending financial services to the rural and semi-urban areas of India, facilitating economic growth and fostering financial inclusion. Such initiatives bear the potential to catalyze the upcoming phase of growth in the Indian economy.