Mirae Asset Mutual Fund has submitted draft document to list The Nifty MidSmallcap400 Momentum Quality 100 ETF. An open-ended fund that replicates and tracks the Nifty MidSmallcap400 Momentum Quality 100 Total Return Index will be called the Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF.
Subject to tracking error, the scheme’s investment goal is to provide returns, before expenditures, that are in line with the Nifty MidSmallcap400 Momentum Quality 100 Total Return Index’s performance.
The plan, which will be overseen by Vishal Singh and Ekta Gala, will be measured against the Nifty MidSmallcap400 Momentum Quality 100 TRI (Total Return Index).
The scheme’s creation unit size will be 2,10,000 units. The application fee would start at Rs 5,000 per application and go up to multiples of Rs 1 from there. Units will be distributed in complete numbers, and any remaining funds will be reimbursed.
Since the exit load is only applied to redemptions made by Market Makers and Large Investors through direct transactions with the AMC, it won’t apply to investors trading with the AMC directly. For investors using the exchange to transact, exit load is not applicable.
The plan will allocate 0-5% to money market instruments, debt securities, and/or units of debt/liquid schemes of domestic mutual funds, and 95–100% to securities included in the Nifty MidSmallcap 400 Momentum Quality 100 Index.
The scheme’s investing approach will involve allocating a same amount of weight to a basket of assets that make up the Nifty MidSmallcap 400 Momentum Quality 100 Index. The goal of the investing strategy would be to minimise tracking error by periodically rebalancing the portfolio while taking the incremental collections and redemptions within the scheme and changes in the weights of the stocks in the index into account. A portion of the money might be used to invest in debt and money.
For this scheme, the maximum allowable total expense ratio (TER) is 1%.
Subject to long-term tracking error, the scheme will be appropriate for investors seeking returns commensurate with the performance of the Nifty MidSmallcap 400 Momentum Quality 100 Total Return Index and wanting to invest in equity securities covered by the index. The scheme’s riskometer indicates that the principal invested will be at “very high” risk.
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