September 19, 2024
New Delhi, India
New ETFs Launched by Mirae Asset
Mirae Asset Mutual Fund has launched two new exchange-traded funds (ETFs) – Mirae Asset Nifty Metal ETF and Mirae Asset Nifty PSU Bank ETF. Both funds are open-ended schemes designed to replicate and track their respective indices, offering investors exposure to India’s metals and banking sectors.
Fund Details and Objectives
The Mirae Asset Nifty Metal ETF will track the performance of the Nifty Metal Total Return Index, while the Mirae Asset Nifty PSU Bank ETF will replicate the Nifty PSU Bank Total Return Index. The Nifty Metal ETF seeks to provide returns aligned with the Nifty Metal Index, which includes 15 companies in India’s metals and mining sector, covering firms involved in the extraction, processing, and distribution of metals like steel, aluminum, copper, and zinc.
Minimum Investment and NFO Dates
The minimum initial investment for both funds is ₹5,000, with additional investments allowed in multiples of ₹1. The New Fund Offer (NFO) for the Mirae Asset Nifty Metal ETF will open on September 20, 2024, and close on September 30, 2024, with the funds reopening for continuous sale and repurchase from October 4, 2024.
Sector Growth and Investment Opportunity
India’s rising infrastructure and manufacturing industries have increased demand for metals. Government initiatives like the Steel Production Linked Incentive (PLI) Schemes are expected to attract investments totaling ₹30,000 crore. This growth in infrastructure is forecasted to contribute 25-30% of the metal demand over the next decade, presenting significant opportunities for investors in the Nifty Metal ETF.
Investors can gain targeted exposure to both the metal and PSU bank sectors through these ETFs, offering potential growth and portfolio diversification.
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