Mirae Asset Files for New Nifty NBFC ETF with SEBI
By ThePip Desk
Mirae Asset Mutual Fund files for its new open-ended Nifty NBFC ETF with SEBI, aiming to track the Nifty NBFC TRI for investors.
Mirae Asset Mutual Fund has submitted an offer document to the Securities and Exchange Board of India (SEBI) for the introduction of an open-ended scheme named ‘Mirae Asset Nifty NBFC ETF’.
This new exchange-traded fund aims to mirror the performance of the Nifty NBFC Total Return Index, providing investors with an opportunity to track the non-banking financial sector.
Understanding the New Scheme
The ‘Mirae Asset Nifty NBFC ETF’ is structured as an open-ended scheme, meaning it does not have a fixed maturity period and investors can buy or sell units on an ongoing basis.
Its primary investment objective is to generate returns, before expenses, that are commensurate with the performance of the Nifty NBFC Total Return Index (TRI).
Key Financial Details and Structure
The New Fund Offer (NFO) price for the scheme will be set at 1/10000th of the Nifty NBFC Index’s value during the NFO period. This pricing mechanism directly links the unit value to the underlying index’s performance.
The scheme has several straightforward financial parameters designed for accessibility.
The minimum target amount for the fund to proceed is Rs 5 crore.
Investors will face nil entry load and nil exit load, which means no charges are levied upon buying or selling units.
The scheme does not provide multiple plans or options for investment, simplifying the choice for potential participants.
The minimum application amount required to invest in the ETF is Rs 5000, with subsequent investments permissible in multiples of Rs 1 thereafter.
The fund’s performance will be benchmarked directly against the Nifty NBFC TRI, ensuring clear measurement of its success in tracking the specified index.