Mirae Asset expands investment opportunities with new ETFs and Fund of Funds

Mirae Asset Investment Managers (India) Pvt. Ltd. has unveiled a set of New Fund Offers (NFOs), introducing two Exchange Traded Funds (ETFs) along with their corresponding Fund of Funds (FoFs).

According to the company, these investment solutions cater to investors seeking structured exposure to IPOs, spin-offs, and an equal-weight strategy for India's top 200 stocks.

An investment solution for retail investors, Exchange Traded Funds (ETFs) are a type of mutual fund whose units are traded on stock exchanges like shares. 

The four new funds include Mirae Asset BSE Select IPO ETF, which tracks the BSE Select IPO Total Return Index; Mirae Asset BSE Select IPO ETF Fund of Fund which invests in units of the Mirae Asset BSE Select IPO ETF; Mirae Asset BSE 200 Equal Weight ETF which follows the BSE 200 Equal Weight Total Return Index and Mirae Asset BSE 200 Equal Weight ETF Fund of Fund, which invests in units of the Mirae Asset BSE 200 Equal Weight ETF.

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

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. 

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, according to a press release.

"IPOs 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 Siddharth Srivastava, Head-ETF Product & Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd.

The past few years have seen a rise in ETFs. Initially a niche investment product, ETFs are now increasingly preferred by retail and institutional investors due to their low cost, liquidity, diversification, and transparency.