The fact that our natural resources are becoming harder to come by across industries is no news. With awareness around environmental degradation and business ethics growing, the sense is that investors too keep the sustainability of businesses in mind, and not just profits, while building their investment portfolio.
That’s where the Environmental, Social, and Governance (ESG) Criteria comes into the picture. These are standards that help gauge how a company uses natural resources, whether it pollutes the environment, whether it treats its employees ethically, and has transparent auditing policies. Of course, there are more factors involved when considering a company’s Environmental, Social and Governance (ESG) rating.
The Mirae Asset ESG Sector Leaders Fund of funds is is a scheme that aims to invest in companies that score well on ESG parameters. The index fund tracks the NIFTY100 ESG Sector Leaders Total Return Index. This index is a basket of large-cap companies with superior ESG risk management scores. Here’s all you need to know before investing in the NFO.
Investment objective
Besides following more sustainable ways to do business, the companies in the Nifty100 ESG Sector Leaders Index have delivered another perk. The index has outperformed the Nifty 100 Index since inception (2014). As per the NSE, the ESG index returned a 12% CAGR against 10.8% CAGR returned by the Nifty100. In the last 3 years too, the ESG Index returned 8.5% CAGR against the 5.2% CAGR recorded by the Nifty100 Index. That’s the opportunity that Mirae’s fund aims to tap into.
Here are some of the highlights of the fund.
- It invests in companies with lower business risk and higher sustainable growth opportunity.
- It avoids companies with major controversies.
- It aims to generate higher returns with lower volatility and downsides.
Click here to invest in the NFO
Asset allocation
| Instrument | Indicative Allocations (% of total assets) | Risk Profile | |
| Minimum | Maximum | ||
| Units of Mirae Asset ESG Sector Leaders ETF | 95 | 100 | High |
| Money market instruments/debt securities, Instruments and/or units of debt/liquid schemes of domestic Mutual Funds | 0 | 5 | Low to medium |
Scheme details
| Name | Mirae Asset ESG Sector Leaders Fund of Fund |
| Type | An open-ended fund of fund scheme predominantly investing in Mirae Asset ESG Sector Leaders ETF |
| Category | Fund of Fund – Domestic |
| Investment objective | To provide long-term capital appreciation from a portfolio investing predominantly in units of Mirae Asset ESG Sector Leaders ETF. |
| Benchmark | NIFTY100 ESG Sector Leaders Index (TRI) |
| Entry/Exit Load |
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| Fund managers |
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| Plans | Regular and Direct |
| Options (under each plan) | Growth & dividend |
| Minimum application amount | ₹5000/- and in multiples of ₹1/- thereafter. |
| Additional application amount | ₹1,000/- and in multiples of ₹1/- thereafter. |
Riskometer
Mirae Asset ESG Sector Leaders ETF is suitable for investors who are seeking*
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*Investors should consult their financial advisors if in doubt about whether the product is suitable for them.
Note: The above information has been sourced from the Scheme Information Document provided by Mirae Asset Investment Managers (India) Private Limited. To read the entire document, click here.
Disclaimer
RKSV Securities India Private Limited (ARN/Distributor - 107930; brand name Upstox) is the distributor of the mutual fund. Please consult your investment advisor before investing.
Mutual fund investments are subject to market risks, read all scheme related documents carefully.
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