The New Fund Offer is currently open for subscription and will close on September 15. The fund will be benchmarked with Nifty 200 Index (TRI) and will be managed by Bharti Sawant. The fund will follow active asset allocation in Nifty50 ETF, Nifty Next 50 ETF, and Midcap150 ETFs with exposure to large and mid cap segment.
Investors can invest in this Fund of Fund and thereby gain access to ETFs even if they have no demat account.
“As the spread of COVID-19 continues, market volatility is expected to exist in the near to medium term. In such a situation, allocation within equities, diversification into different categories and continuously rebalancing the portfolio to maintain the market cap allocation becomes a challenge for investors,” said Swarup Mohanty, CEO, Mirae Asset Investment Managers (India) Pvt. Ltd.
He also said Mirae Asset Equity Allocator Fund of Fund seeks to help investors deal with this concern by making the most of the opportunities available in equities thereby aiming to optimize returns by actively rebalancing the portfolio based on the market scenario at minimal cost.
“The Fund of Fund provides benefit of using MF structure to make underlying investments in low cost ETFs with benefits of equity fund taxation. Investors can make investments in SIP mode for their long term planning and they also don’t need a demat account for making investments” added Swarup Mohanty.
The minimum initial investment in the scheme will be Rs 5,000 and in multiples of Re 1 thereafter. The goal of investment is to generate market returns with low cost ETFs and long-term capital appreciation/ income with moderately high risk.
The Mirae Asset Equity Allocator Fund of Fund will offer Regular Plan and Direct Plan with Growth Option and Dividend Option (Pay-out & Re-investment).