NFO: Mirae Asset Mutual Fund launches Nifty500 Multicap 50:25:25 ETF; check dates, minimum investment, who should invest and other features

Mirae Asset Investment Managers (India) launched the country's first Multicap Exchange Traded Fund, ‘Mirae Asset Nifty500 Multicap 50:25:25 ETF’ today, August 8. This is an open-ended scheme replicating the Nifty500 Multicap 50:25:25 Total Return Index.

The 50:25:25 ratio means, the index comprises 100 large-cap stocks, 150 mid-cap stocks, and 250 small-cap stocks with 50 per cent weightage towards the large cap and 25 per cent each towards midcap and small-cap stocks offering a well-rounded investment approach.

Nifty500 Multicap opening and closing dates

The NFO for the scheme will open on Monday, August 12, 2024, and close on Monday, August 26, 2024. 

Nifty500 Multicap 50:25:25 ETF: Minimum investment

The minimum investment during NFO should be Rs 5,000 and in multiples of Rs 1 after that. 

Who are the fund managers?

Ekta Gala and Vishal Singh are managing the new fund.

What is the aim of the NFO?

This new fund aims to generate returns that closely mirror the Nifty500 Multicap 50:25:25 Total Return index. With this new fund, Mirae Asset Mutual Fund aims to provide investors with a diversified investment approach with balanced exposure across various market capitalisations. 

"The Mirae Asset Nifty500 Multicap 50:25:25 ETF is a strategic addition to our existing product portfolio. This scheme offers a unique investment opportunity by providing balanced exposure to the entire universe of large, mid, and small-cap stocks where portfolio weight towards each market segment is predefined in a manner to provide investors the stability of large-cap along with growth opportunities with reasonable exposure towards mid and small caps. Hence, the fund is designed to capture the growth potential of a broad market spectrum while aiming to minimise the risk. We believe this ETF could be an excellent addition for investors seeking a well-rounded investment strategy," said Siddharth Srivastava, Head – ETF Products and Fund Manager, Mirae Asset Investment Managers.

As of June 30, 2024(Latest available),25 actively managed mutual fund schemes with an AUM of Rs. 1,54,024.9 Cr. are benchmarked against the Nifty500 Multicap 50:25:25 Index.

Risk factor

The mix of large, mid, and small-cap stocks combines growth potential with portfolio stability, making it suitable for a balanced investment strategy.