Mirae Asset launches two new fund of funds, check details

Mirae Asset Investment Managers (India) has announced the launch of two new Fund of Funds (FoFs) to bolster its offerings in the passive investment arena. The funds, namely Mirae Asset Multi Factor Passive FoF and Mirae Asset Gold Silver Passive FoF, are set to provide investors with diversified access to smart beta equity strategies and precious metals. The subscription period for these funds is from 11 August to 25 August, with reopening slated for 1 September. Investors can start with a minimum of ₹5,000, while SIPs begin at ₹99. These open-ended FoFs will be managed by Ritesh Patel.

The Mirae Asset Multi Factor Passive FoF focuses on domestic equity ETFs, employing strategies such as momentum, low volatility, equal weight, quality, and value. Unlike single-factor strategies, this fund aims to dynamically adjust its allocation to mitigate volatility and avoid drawdowns, as highlighted by Siddharth Srivastava, Head - ETF Product & Fund Manager at Mirae Asset.

He stated, "Every factor goes through its own cycle. Riding just one may lead to periods of underperformance, making it emotionally difficult to stay invested." Additionally, he emphasised that "Multi-factor investing offers a balanced approach—aligning strategy with both risk and return objectives."

The second fund, Mirae Asset Gold Silver Passive FoF, offers exposure to gold and silver by investing in respective ETFs. This fund will dynamically shift its allocations between the two metals, based on market conditions. Siddharth Srivastava remarked, "Investing in a blend of gold and silver offers twin benefits: gold acts as a wealth creator and a defensive asset during periods of stress, while silver brings cyclical upside and growth potential."

He further added, "The fund aims to strike a balance between stability and opportunity by dynamically tilting toward the metal with the relatively stronger outlook." Both funds allow in-fund allocation management, averting tax implications for investors that typically arise from direct ETF switching.