Mirae Asset Mutual Fund launches Funds based on Select IPO Theme & Equal Weight Strategy

• Mirae Asset BSE Select IPO ETF seeks to provide exposure to India`s dynamic IPO market & spin offs.
• Mirae Asset BSE 200 Equal Weight ETF seeks to provide equal exposure to Top 200 stocks listed on BSE
• Fund of Fund (FoF) for both ETFs will allow investors to invest in the schemes via normal mutual fund route
• NFO for both ETFs to open on February 24, 2025, and the same for both FoFs will open on February 25, 2025

Mumbai: Mirae Asset Investment Managers (India) Pvt. Ltd. announces launch of New Fund Offers (NFOs) for 2 new ETFs and 2 new Fund of Funds based on these ETFs providing two distinct investment solutions to the investors 1) A structured and diversified way to participate in IPO segment and new Spin offs, 2) An Equal weight strategy based on Top 200 stocks.

The new funds are Mirae Asset BSE Select IPO ETF, an open-ended scheme replicating/tracking BSE Select IPO Total Return Index; Mirae Asset BSE Select IPO ETF Fund of Fund, an open-ended fund of fund scheme investing in units of Mirae Asset BSE Select IPO ETF; Mirae Asset BSE 200 Equal Weight ETF, an open ended scheme replicating/tracking BSE 200 Equal Weight Total Return Index; and Mirae Asset BSE 200 Equal Weight ETF Fund of Fund, an open-ended fund of fund scheme investing in units of Mirae Asset BSE 200 Equal Weight ETF.

The New Fund Offer (NFO) for Mirae Asset BSE Select IPO ETF and Mirae Asset BSE 200 Equal Weight ETF will open for subscription on February 24, 2025 and close on March 05, 2025 and will re-open for continuous sale and repurchase on March 11, 2025.

 Concurrently, the Mirae Asset BSE Select IPO ETF Fund of Fund and Mirae Asset BSE 200 Equal Weight ETF Fund of Fund will open for subscription on February 25, 2025, and close on March 11, 2025, and will re-open for continuous sale and repurchase on March 19, 2025.

“IPO`s and Spin-offs provide opportunity to investors to participate in companies which may have significant growth potential or in companies which have relatively established business line. Investments in such new listings may or may not deliver expected returns and carry reasonable risk. With Mirae Asset BSE Select IPO ETF & Fund of Fund, we aim to provide a more structured, disciplined and diversified approach to take exposure in new companies post listing., said Mr. Siddharth Srivastava, Head-ETF Product & Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd. Mirae Asset BSE 200 Equal Weight ETF & Fund of Fund, is an equal weighted strategy where each stock is assigned equal weight in a portfolio consisting of 100 large cap and top 100 midcap companies. Due to equal distribution, effectively the fund will also have equal exposure to large and midcap segment thus providing a diversified and equal exposure to Top 200 stocks. This strategy seeks to reduce stock specific risk and typically works if there is a broad-based diversified performance in the market

For all four schemes, the minimum initial investment during New Fund Offer will be Rs 5,000/- (Rupees Five Thousand) with subsequent investments being multiples of Re 1.

The schemes aim to provide investors with a structured approach for gaining exposure to recently listed Initial Public Offerings (IPOs) and spin-off companies which falls within Top 500 companies by market cap.

Newly listed stocks will be considered for inclusion after 3 months of listing, seeking to avoid initial volatility. Stock capping of 5% will be applied to ensure diversification. New listings will remain in the index for 5 years, allowing index to capture short to medium term growth trend.

By leveraging a passive investment strategy, the Mirae Asset BSE Select ETF and Fund of Fund offers a transparent and cost-efficient way to gain exposure to newly listed stocks without the complexities of actively tracking individual offerings. The quarterly rebalancing mechanism will aim to ensure that the portfolio remains aligned with evolving market trends and captures new listings

With India ranking among the top markets globally in terms of new IPOs, the introduction of this innovative investment solution comes at an opportune time. As companies across market cap, across industries like fintech, auto, e-commerce, healthcare, new age businesses etc continues to go public, investors now have an efficient tool to participate in the growth story of new listings. As access to IPOs have become difficult with huge size of over subscription, the Mirae Asset BSE Select IPO ETF & Fund of Fund seeks to provide investors a disciplined way of investing in new companies post listing.