Mirae Asset Mutual Fund announced the launch of the Mirae Asset S&P BSE Sensex ETF, an open-ended scheme replicating/tracking the S&P BSE Sensex Total Return Index.
The scheme opened for public subscription on September 22, 2023, and will close on September 26, 2023. The scheme re-opens for continuous sale and repurchase from October 03, 2023.
What kind of mutual fund scheme is this?
This is an open-ended exchange-traded fund scheme replicating/tracking the S&P BSE Sensex Total Return Index.
Siddharth Srivastava, Head – ETF Products, Mirae Asset Mutual Fund says, “S&P BSE Sensex is the oldest equity index of India and it has been tracking the market since its launch on Jan 01, 1986. Over the years, it has evolved as the Indian equity markets have, by representing a portfolio of 30 largest large-cap companies which have changed fairly over some time."
“ETFs based on S&P BSE Sensex is India's 2nd largest ETF category with a total AUM of around 1.32 lakh crore (August 31, 2023). Over the years, this product has gained popularity among institutional and retail clients as it provides transparent and low-cost access to a portfolio of 30 companies forming part of the Sensex. The underperformance of large-cap funds vis-à-vis benchmark has certainly helped its popularity,” added Srivastava.
Mirae Asset Mutual Fund currently manages 15 ETFs across asset classes, themes, and geographies. Investors may assess this product from a short or a long-term point of view based on their investment objective and risk profile.
What is the main objective of investing in this fund?
The investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the S&P BSE Sensex Total Return Index, subject to tracking error. There is no assurance or guarantee that the investment objective of the scheme will be achieved.
How may one invest in this scheme?
Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.
Under normal circumstances, the asset allocation of the scheme will be as follows:
| Types of Instruments | Indicative allocations (% of total assets) | Risk Profile | |
Minimum | Maximum | ||
Securities included in the S&P BSE Sensex Index | 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 |
Are there similar mutual funds in the market?
To date, many asset management companies (AMCs) have launched such S& P BSE Sensex exchange-traded funds (ETFs), thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index. These include:
Mutual Fund House | Nifty Bank ETF |
IDFC Mutual Fund | IDFC S&P BSE Sensex ETF |
ICICI Prudential Mutual Fund | ICICI Pru S&P BSE Sensex ETF |
Kotak Mahindra Mutual Fund | KotakBETF |
SBI Mutual Fund | SBI S&P BSE Sensex ETF |
Axis Mutual Fund | Axis S&P BSE Sensex ETF |
HDFC Mutual Fund | HDFC S&P BSE Sensex ETF |
Aditya Birla Sun Life Mutual Fund | Aditya BSL S&P BSE Sensex ETF |
| Source: https://www.spglobal.com/spdji/en/indices/equity/sp-bse-sensex/#overview | |
How will the scheme benchmark its performance?
The performance of the scheme will be benchmarked to the performance of the S&P BSE Sensex Total Return Index. The trustees have adopted the S&P BSE Sensex Index as the benchmark index.
The S&P BSE Sensex Index is designed to track the performance of the 30 largest, most liquid, and financially sound companies across key sectors of the Indian economy that are listed on BSE Ltd. The Index represents large-cap companies listed at BSE Ltd & is calculated based on float-adjusted market cap weighted methodology.
Are there any entry or exit loads to this scheme?
This scheme involves no “Entry Load”, which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load” would be calculated as under:
- For investors transacting directly with the AMC: No exit load will be levied on redemptions made by market maker / large investors directly with the AMC.
- For investors transacting on the exchange: Not Applicable
Who will manage this scheme?
Ekta Gala andVishal Singh are the designated fund managers of this scheme.
Does the fund contain any inherent risk?
The scheme involves “Very High Risk” as per the details mentioned in theScheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.
