5 Minutes Read
Mirae Asset Mutual Fund launches India’s first scheme with 50 mid-cap and 50 small-cap stocks: Should you invest?
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
Listen to the Article (6 Minutes)
Summary
This is an open-ended scheme replicating/tracking Nifty Mid Small-cap400 Momentum Quality 100 Total Return Index that aims to capture wealth magnifiers and preservers using momentum and quality metrics which might have the potential of creating alpha in the long run.
Mirae Asset Mutual Fund on Monday (May 6) launched Nifty Mid Small-cap 400 Momentum Quality 100 exchange traded fund (ETF). This is India’s first mutual fund scheme on Mid and Small-cap segment where the underlying portfolio will consist of 50 Mid-cap and 50 Small-cap stocks, the mutual fund house said.
The new fund offer (NFO) of the scheme is available till May 17, 2024.
About the Fund
This is an open-ended scheme replicating/tracking Nifty MidSmallcap400 Momentum Quality 100 Total Return Index that aims to capture wealth magnifiers and preservers using momentum and quality metrics which might have the potential of creating alpha in the long run.
The index seeks to unlock opportunities present in both Midcap and Smallcap segment by having an equal number of stocks from both segments in a 100 stock portfolio at the time of rebalancing, Mirae Asset Mutual Fund said.
This fund will allow investors to allocate 50-50 in Mid-cap and Small-cap segments.
This scheme will be managed by Ekta Gala and Vishal Singh.
The minimum initial investment during NFO will be ₹5,000 with subsequent investments being multiples of ₹1.
Investment Considerations
According to the mutual fund house, investors may gain as the portfolio seeks potential growth with exposure of Small-cap segment with risk mitigation due to the presence of mid-cap stocks.
Siddharth Srivastava, Head-ETF Product, and the Fund Manager, highlighted the fund’s aim to target highly profitable companies with low leverage and stable earnings growth, which have historically shown higher risk-adjusted returns over the last 6-month and 1-year periods.
By investing in these funds, he emphasised, investors will gain exposure to both mid and small-cap companies, albeit with a risk profile more aligned with the mid-cap segment.
Srivastava suggested that given current market valuations, investors may consider investing in the ETF in a lump sum with a long-term investment horizon.
However, as with any investment decision, investors should assess their risk tolerance and investment objectives before investing.
Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout
3 Mins Read
Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter
Daily Newsletter
