Mirae Asset Mutual Fund has filed a draft document with Sebi for the Nifty MidSmallcap400 Momentum Quality 100 ETF. Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF will be an open-ended scheme replicating/tracking Nifty MidSmallcap400 Momentum Quality 100 Total Return Index.
The investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Nifty MidSmallcap400 Momentum Quality 100 Total Return Index, subject to tracking error.
The scheme will be benchmarked against Nifty MidSmallcap400 Momentum Quality 100 TRI (Total Return Index) and managed by Ekta Gala and Vishal Singh.
The creation unit size for the scheme shall be 2,10,000 units. The minimum application amount will be Rs 5,000 per application and in multiples of Re 1 thereafter. Units will be allotted in whole figures and the balance amount will be refunded.
There will be no exit load for investors transacting directly with the AMC as the exit load will be levied on redemptions made by Market Makers/ Large Investors directly with the AMC. Exit load is not applicable for investors transacting on the exchange.
The scheme will invest 95-100% in securities included in the Nifty MidSmallcap400 Momentum Quality 100 Index and 0-5% in money market instruments/debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds.
The investment strategy of the scheme will be to invest in a basket of securities forming part of the Nifty MidSmallcap 400 Momentum Quality 100 Index in a similar weight proportion. The investment strategy would revolve around reducing the tracking error to the least possible through regular rebalancing of the portfolio, considering the change in weights of stocks in the index as well as the incremental collections/redemptions in the scheme. A part of the funds may be invested in debt and money market instruments, to meet the liquidity requirements.
The maximum total expense ratio (TER) permissible for the scheme will be up to 1%.
The scheme will be suitable for investors who are seeking returns that commensurate with the performance of the Nifty MidSmallcap400 Momentum Quality 100 Total Return Index, subject to tracking error over long-term and want investments in equity securities covered by Nifty MidSmallcap 400 Momentum Quality 100 Total Return Index. The principal invested in the scheme will be at “very high” risk according to the riskometer of the scheme.
