MIRAEAMC - SMALLCAP ETF

About Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF

• The Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF is an open-ended scheme belonging to the Mirae Asset Mutual Fund house.
• It was launched on February 23, 2024.
• On the National Stock Exchange (NSE), the ETF is traded under the symbol SMALLCAP.
• As of June 30, 2024, the Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF manages assets worth ₹259.11 crore.
• Vishal Singh and Ekta Gala are the fund managers.
• One can invest in the scheme by placing a buy order for the ETF units through their demat account with a registered broker.
• The ETF can be bought and sold directly during the usual market hours

Investment Objective and Benchmark

• The Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF is benchmarked against Nifty Smallcap 250 Momentum Quality 100 Total Return Index (TRI).
• Its investment objective is to generate returns that align with the performance of the Nifty Smallcap 250 Momentum Quality 100 TRI.
• Investors need to be careful as the fund falls under the very high risk category of investments.
• The ideal investment horizon for this fund is at least three years or more, allowing sufficient time for investors to realise potential returns and navigate market fluctuations.
• The ETF invests in small-cap companies that tend to have better growth potential when compared to large or giant companies.
• The scheme diversifies funds in companies from different business domains, limiting the investors’ exposure to sectoral or individual stock risk.

Asset Allocation and Portfolio Composition

• The Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF’s asset allocation includes 95% to 100% in securities that are part of the Nifty Smallcap 250 Momentum Quality 100 Index.
• The remaining allocation, between 0% and 5%, is in money market instruments, debt securities and units of debt or liquid schemes of domestic mutual funds.
• When it comes to sector-wise distribution, the allocation includes 16.86% in capital goods, 16.75% in financials, 11.79% in services, 9.11% in construction, 7.67% in metals and mining, and 37.82% in other sectors.
• Regarding market capitalisation, the fund allocates 46.61% to giant-cap stocks, 20.73% to large-cap stocks, 23.60% to mid-cap stocks, 8.86% to small-cap stocks and 0.19% to tiny-cap stocks.

The top 10 company holdings constitute 73% of the ETF’s asset allocation.

• HDFC NIFTY100 Quality 30 ETF top 10 holdings:
• Coal India Ltd. 5.76%
• Nestle India Ltd. 4.98%
• Infosys Limited 4.71%
• Maruti Suzuki India Limited 4.52%
• Hindustan Unilever Ltd. 4.25%
• HCL Technologies Ltd. 5.13%
• Tata Consultancy Services Ltd. 4.96%
• ITC Ltd. 4.56%
• Bajaj Auto Limited 4.51%
• HDFC Bank Ltd. 4.18%