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Mirae Asset Mutual Fund on Thursday launched Mirae Asset Nifty Midcap 150 ETF, an open-ended equity scheme that aims to track the performance of 150 mid-market capitalization companies.
The new fund offer (NFO) opened for subscription on 24 February and will close on 4 March. 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 the multiples of Re 1, thereafter.
The scheme has proposed to charge 5 basis points as the total expense ratio (TER).
“We at Mirae Asset Mutual Fund are constantly working towards providing cost effective products like these to our partners and investors which can help them enhance their portfolio in this Midcap ETF space," said Swarup Mohanty, director and chief executive officer, Mirae Asset Investment Managers (India) Pvt. Ltd.
The scheme will be benchmarked against Nifty Midcap 150 Total Return Index (TRI), which represents the next 150 companies (companies ranked 101-250) based on full market capitalization from Nifty 500. This index measures the performance of mid-market capitalisation companies.
The fund house quoting National Stock Exchange data said that the Nifty Midcap 150 TRI has given better returns than Nifty 50 and Nifty 100 in the last one, three, five, seven, 10 and 15 years.
In terms of sectoral representation, financial services has the highest weightage in Nifty Midcap 150 at 16.89%, followed by consumer goods (10.67%), industrial manufacturing (9.73%), automobile (8.96%) and IT (8%).
Stock-wise, Adani Total Gas Ltd. has highest weightage 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 Nifty Midcap 150 index.
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