Mirae Asset Mutual Fund ventures into smallcap space with new passive offerings

Mirae Asset Mutual Fund has announced its entry into the smallcap segment with the introduction of India's first Multi factor-based ETF on Nifty Smallcap250 Index.

The fund, named 'Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF', is an open-ended scheme designed to replicate and track the Nifty Smallcap 250 Momentum Quality 100 Total Return Index. Additionally, the company has launched the 'Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF Fund of Fund', an open-ended fund of fund scheme that invests in units of the Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF.

The offerings aim to provide investors with sector-agnostic exposure within the smallcap category by utilising a combination of factors.

The New Fund Offer (NFO) for the Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF opened for subscription on February 12, Monday and will close on February 21. Similarly, the Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF Fund of Fund will open for subscription from February 15 to February 28.

Both schemes are open-ended and benchmark against the Nifty Smallcap 250 Momentum Quality 100 Total Return Index. The management of these schemes will be overseen by Ekta Gala and Vishal Singh.

During the NFO period, the minimum initial investment required for both schemes will be Rs 5,000, with subsequent investments available in multiples of Re 1.

Smallcap stocks, when filtered through parameters like liquidity, momentum, and quality (LQM), are seen as having potential for wealth creation. Leveraging its expertise in developing innovative passive products, Mirae Asset Mutual Fund aims to capitalise on this potential with its new ETF.

"By focusing on three tried and tested pillars of Liquidity, Quality, and Momentum (LQM), this is a first-of-its-kind multi-factor product in the smallcap segment, which will seek to track a robust portfolio of select 100 smallcap stocks from Nifty Smallcap 250 Index, with an endeavour for potentially lower drawdowns. At current market valuations, the investor may invest in a lumpsum manner or through Systematic Investment Plan (SIP), but with a long-term investment horizon,” said Siddharth Srivastava, head – ETF product and fund manager.