NFO Alert: Mirae Asset Nifty Metal ETF and Mirae Asset Nifty PSU Bank ETF; check details

Mirae Asset Investment Managers on Thursday, September 19, announced the launch of two new funds: Mirae Asset Nifty Metal ETF (an open-ended scheme replicating/tracking the Nifty Metal Total Return Index) and Mirae Asset Nifty PSU Bank ETF (an open-ended scheme replicating/tracking the Nifty PSU Bank Total Return Index). 

The new fund offer (NFO) for Mirae Asset Nifty Metal ETF will open on September 20, 2024, and close on September 30, 2024. The scheme will reopen for continuous sale and repurchase on October 4, 2024.

The NFO for Mirae Asset PSU Bank ETF will open on September 24, 2024, and close on September 30, 2024. The scheme will reopen for continuous sale and repurchase on October 3, 2024.

Both funds will be managed by Ekta Gala and Akshay Udeshi. The minimum initial investment in both funds will be ₹5,000, and multiples of₹1 thereafter during the NFO, the fund house said in its press release. 

About Mirae Asset Nifty Metal ETF

Mirae Asset Nifty Metal ETF aims to generate returns, before expenses, that are commensurate with the performance of the Nifty Metal Total Return Index, subject to tracking error.

The Nifty Metal Index provides exposure to 15 stocks from Indian metals and mining sectors listed on the National Stock Exchange (NSE). The index consists of companies involved in the extraction, processing, and distribution of metals, including iron ore, steel, aluminum, zinc, copper, etc.

Increased infrastructure spending is expected to contribute 25–30% of metal demand in the next decade. Nifty Metal ETF aims to provide focussed exposure to companies participating in this segment, the press release added. 

In a year, the NIFTY METAL index has jumped 35%. 

About Mirae Asset PSU Bank ETF

Mirae Asset PSU Bank ETF aims to generate returns, before expenses, that are commensurate with the performance of the Nifty PSU Bank Total Return Index, subject to tracking error. The Nifty PSU Bank Index comprises public-sector undertaking bank stocks listed on the National Stock Exchange (NSE).

The PSU banks have outperformed private sector banks and several other sectoral indices in the past three years, driven by a strong turnaround in profitability and asset quality improvement.

PSU banks provide wider access to rural and semi-urban India and play a key role in promoting economic growth and financial inclusion, potentially unlocking the next phase of growth.

The Nifty Bank Index has a lower allocation toward PSU banks; hence, the PSU Bank ETF will provide investors with focused exposure to this segment at a relatively low cost, the press release added. 

Speaking on the NFOs launch, Siddharth Srivastava, Head – ETF Products and Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd., said, “The Nifty Metal ETF will allow investors to take either tactical exposure based on a short-term view on the metal and commodity cycle or a long-term exposure due to India’s focus on infrastructure and manufacturing.

"The PSU Bank segment in the last few years has witnessed a significant improvement in asset quality, risk preparedness, and a strong turnaround in profitability. The PSU Bank ETF aims to provide focussed exposure to this segment, which has the potential to continue on its current track of growth and profitability," Srivastava added.