Mirae Asset MF Launches Nifty Midcap 150 ETF Program with 5bps Spend Ratio

Mirae Asset Mutual Fund on Thursday launched Mirae Asset Nifty Midcap 150 ETF, an open-end equity program that aims to track the performance of 150 midcap companies.

The new fund offering (NFO) was opened for subscription on February 24 and will close on March 4. The Mirae Asset Nifty Midcap 150 exchange-traded fund (ETF) will be managed by Ekta Gala. The minimum initial investment in the scheme during the NFO period will be 5,000 and in multiples of Re 1, thereafter.

The scheme proposed to charge 5 basis points as the total expense ratio (TER).

“At Mirae Asset Mutual Fund, we are constantly working to provide profitable products like these to our partners and investors that can help them enhance their portfolio in this Midcap ETF space,” said Swarup Mohanty, Director and Managing Director of Mirae Asset Investment Managers. (India) Pvt. ltd.

The program will be benchmarked against the Nifty Midcap 150 Total Return Index (TRI), which represents the following 150 companies (companies ranked 101-250) based on the full market capitalization of the Nifty 500. This index measures the performance of mid-cap companies.

The fund house citing National Stock Exchange data said the Nifty Midcap 150 TRI has outperformed Nifty 50 and Nifty 100 over the one, three, five, seven, 10 and 15 years.

In terms of sector representation, Financials has the highest weight in Nifty Midcap 150 at 16.89%, followed by Consumer Goods (10.67%), Industrial Manufacturing (9.73%), automotive (8.96%) and IT (8%).

In terms of shares, Adani Total Gas Ltd. has the highest weighting at 2.83%, followed by Tata Power Co. Ltd. (2.35%), SRF Ltd. (1.97%), AU Small Finance Bank Ltd. (1.62%) and Voltas Ltd. (1.55%).

In India, Nippon India Mutual Fund and ICICI Prudential Mutual Fund have ETFs based on the Nifty Midcap 150 index.

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Sallie R. Loera