Mirae Asset Mutual Fund launches two passive funds

Mirae Asset Mutual Fund has announced the launch of two new passive funds — Mirae Asset Nifty Metal ETF and Mirae Asset Nifty PSU Bank ETF.

The new fund offer or NFO of Mirae Asset Nifty Metal ETF will open for subscription on September 20 and close on September 30. The scheme will re-open for continuous sale and repurchase on October 4.

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The NFO of Mirae Asset PSU Bank ETF will open on September 24 and close on September 30. The scheme will re-open for continuous sale and repurchase on October 3.

Mirae Asset Nifty Metal ETF is an open-ended scheme replicating/tracking Nifty Metal Total Return Index and Mirae Asset Nifty PSU Bank ETF is an open-ended scheme replicating/tracking Nifty PSU Bank Total Return Index.

The investment objective of Mirae Asset Nifty Metal ETF is to generate returns, before expenses, that are commensurate with the performance of the Nifty Metal Total Return Index, subject to tracking error.

The investment objective of Mirae Asset PSU Bank ETF is to generate returns, before expenses, that are commensurate with the performance of the Nifty PSU Bank Total Return Index, subject to tracking error.

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Both funds will be managed by Ekta Gala and Akshay Udeshi. The minimum initial investment in both funds will be Rs 5,000 and in multiples of Re 1 thereafter during the NFO.

“The Nifty Metal ETF will allow investors to take either tactical exposure based on a short-term view on metal and commodity cycle or a long-term exposure due to India’s focus on infrastructure and manufacturing. The PSU Bank segment in the last few years has witnessed a significant improvement in asset quality, risk preparedness, and strong turnaround in profitability. The PSU Bank ETF aims to provide focussed exposure to this segment which has the potential to continue on its current track of growth and profitability,” said Siddharth Srivastava, Head – ETF Products and Fund Manager, Mirae Asset Investment Managers (India).