Mirae Asset’s 50:50 Hybrid ETF: Tax Rules & Portfolio Impact

THE PIP (TL;DR)

This new hybrid ETF offers a balanced approach, but understanding its unique tax structure is key for your long-term returns.

• Mirae Asset Mutual Fund launched the Mirae Asset Nifty200 Momentum 30 Plus 8-13 yr G-Sec 50:50 ETF-Growth on July 27, 2026.
• The fund aims to track the Nifty200 Momentum 30 Plus 8-13 yr G-Sec 50:50 Index, offering a blend of equity and government bonds.
• Its 50:50 allocation places it in a specific tax bracket for hybrid funds, impacting how your gains are taxed.

Mirae Asset Mutual Fund introduced an open-ended balanced hybrid scheme, the Mirae Asset Nifty200 Momentum 30 Plus 8-13 yr G-Sec 50:50 ETF-Growth, on July 27, 2026. This Exchange Traded Fund (ETF), which is a type of investment fund traded on stock exchanges, aims to deliver returns that align with the performance of the Nifty200 Momentum 30 Plus 8-13 yr G-Sec 50:50 Index, accounting for any tracking error. The initial New Fund Offer (NFO) period, when new funds are first offered to the public, ran from July 10, 2026, to July 22, 2026.

For investors considering this fund, a minimum investment of ₹5,000 is required, and it features a 0% exit load, meaning no charges for withdrawing your investment. Classified by SEBI (Securities and Exchange Board of India) as a ‘Hybrid: Balanced Hybrid’ scheme, it carries a ‘High risk’ rating. As of its launch, the fund recorded Assets Under Management (AUM), the total market value of all financial assets managed by the fund, at ₹0.0 crore, with an expense ratio (the annual fee charged to investors) of 0.0% for its Regular plan. Ekta Gala and Pranavi Kulkarni were appointed as fund managers on July 10, 2026.

Understanding the tax implications for hybrid funds like this is crucial for your personal finances. Since this fund features a 50% equity allocation, it falls into the 35-65% equity allocation category for taxation purposes. This means if you redeem your units within three years, the gains are added to your income and taxed at your individual slab rate. For redemptions after three years, gains are taxed at 20% with the benefit of indexation, which adjusts the purchase price for inflation, thereby reducing the taxable gain.

The suggested investment horizon for this particular fund is greater than three years. This longer-term approach is recommended to help mitigate potential downside risks and enhance the predictability of returns. By combining exposure to the Nifty200 Momentum 30 Index, which tracks equity, with 8-13 year Government Securities (G-Secs), which are debt instruments issued by the government, the fund offers a balanced diversification strategy, potentially smoothing out market volatility for your portfolio.

ONE THING TO CONSIDER TODAY

Before investing in any hybrid fund, always review its equity-debt allocation and understand how that specific ratio will impact the taxation of your gains.