Mirae Asset MF expands ETF offerings with metal and PSU bank funds

Schemes aim to generate returns commensurate with the performance of the Nifty PSU Bank Total Return Index, subject to tracking error

Mirae Asset Investment Managers (India) has launched two new Exchange Traded Funds (ETFs). Mirae Asset Nifty Metal ETF and Mirae Asset Nifty PSU Bank ETF will provide investors "focused exposure" to the metals and public sector banking sectors, said the company.

 

Mirae Asset Nifty Metal ETF

 

The Mirae Asset Nifty Metal ETF will replicate the performance of the Nifty Metal Total Return Index. It will track 15 Indian metals and mining stocks listed on the National Stock Exchange (NSE). The ETF will cover companies in the metal industry, including those involved in extraction, processing, and distribution of iron ore, steel, aluminium, zinc, and copper.

 

 

The new fund offer (NFO) for the Mirae Asset Nifty Metal ETF opens on Friday and will close on September 30, 2024. The scheme is scheduled to re-open for continuous sale and repurchase on October 4.

 

Increased infrastructure spending is expected to contribute 25–30 per cent of metal demand in the next decade. Nifty Metal ETF aims to provide focused exposure to companies participating in this segment, the company said in the press release.

 

Mirae Asset Nifty PSU Bank ETF

 

The Mirae Asset Nifty PSU Bank ETF is designed to track the Nifty PSU Bank Total Return Index, which comprises Indian Public Sector Undertaking Bank stocks listed on the NSE. This ETF aims to capitalise on the recent strong performance of PSU banks, which have outpaced private sector banks and several other sectoral indices over the past three years.

 

The NFO for the Mirae Asset Nifty PSU Bank ETF will open on Tuesday and close on September 30, 2024. It will re-open for continuous sale and repurchase on October 3.

 

The Nifty Bank Index has a lower allocation toward PSU banks; hence, the PSU Bank ETF will provide investors with focused exposure to this segment at a relatively low cost, the company said.

 

Both ETFs will be managed by Ekta Gala and Akshay Udeshi, Investors can invest with a minimum initial investment of Rs. 5,000 and multiples of Re. 1 thereafter during the NFO period.

 

“The Nifty Metal ETF will allow investors to take either tactical exposure based on short-term views on the metal and commodity cycle or a long-term exposure due to India's focus on infrastructure and manufacturing,” said Siddharth Srivastava, head of ETF products and fund manager at Mirae Asset Investment Managers (India).

 

“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 Srivastava.