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Mirae Asset NYSE FANG+ ETF Fund of Fund NFO – Objective, Features, SIP Details, About scheme

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Manish Kothari
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Mirae Asset NYSE FANG+ ETF Fund of Fund NFO

Mirae Asset Mutual Fund has announced the launch of the Mirae Asset NYSE FANG+ ETF Fund of Fund. The scheme would be predominantly investing its assets in the units of its underlying ETF i.e. Mirae Asset NYSE FANG+ ETF.

The New Fund Offer (NFO) starts from 19th April 2021 and will end on 03rd May 2021. Units will be allotted on 10th May 2021 and the scheme will reopen for continuous sale and repurchase from 11th May 2021.

Investment Objective 

The investment objective of the scheme is to generate long-term capital growth by investing its assets in units of its underlying ETF i.e. Mirae Asset NYSE FANG+ ETF.

Features

  • The fund will be investing a minimum of 95% of its assets in the underlying ETF.
  • The underlying ETF is Mirae Asset NYSE FANG + ETF.
  • The index is new as it was launched in 2017.
  • Since its inception, the index has moved from 2,000 points to 6,780+ points.
  • In the last 1 year, it has generated 119% of returns as of 7th April 2021.
  • The underlying index includes companies like Amazon, Facebook, Apple, Netflix, Alphabet Google, and other high-growth technology companies.

Why Invest in Mirae Asset NYSE FANG+ ETF Fund of Fund NFO?

  • The fund will invest in the units of the ETF of Mirae Asset NYSE FANG+ ETF.
  • The index is a focused and equal-weighted index that comprises stocks of high-growth technology and the internet or media industry.
  • It has a portfolio of companies that are accelerated to be a part of future technology disruptions.
  • Fund gives exposure to US markets at low cost as it is a passively managed fund.
  • The fund will benefit from the depreciation of domestic currency i.e INR.
  • The underlying index has generated better risk-adjusted returns than NASDAQ 100 and NIFTY 50 in the long run.

About NYSE FANG+ Index

It is an equal-weighted index that is designed to represent the consumer discretionary and technology segment.

Criteria

  1. The initial universe for the portfolio will comprise stocks listed on a major US stock exchange.
  2. Only the stocks with a market capitalization of at least USD$5 Billions will be selected for the portfolio.
  3. Stocks representing the high growth technology and internet or media industry will be included in the index.
  4. Stocks with a trailing daily traded volume of USD 50 million can be included in the index.

Top 10 Constituents - NYSE FANG+ Index

StockWeightage
Baidu14.4%
Twitter 12.1%
Alphabet 11.0%
Netflix 9.4%
NVIDIA9.3%
Apple9.1%
Tesla9.1%
Amazon8.9%
Facebook8.6%
Alibaba8.3%

NYSE FANG+ Index - Sector Weightage

SectorWeightage
Interactive Media & Services 46.1%
Internet & Direct Marketing Retail 17.1%
Entertainment9.4%
Semiconductors & Semiconductor Equipment 9.3%
Technology Hardware, Storage & Peripherals 9.1%
Automobiles9.1%

Who Should Invest?

This scheme is suitable for investors who are -

  • Interested in long-term capital growth and income.
  • Interested in investments in units of the Mirae Asset NYSE FANG+ ETF.
  • Recommended for investors with an investment horizon of 5 years & above.

Asset Allocation Pattern

InstrumentsMinimum % of total assets (Indicative)Maximum % of total assets (Indicative)Risk Profile
Units of Underlying ETF i.e. Mirae Asset NYSE FANG+ ETF 95%100%High
Debt or Money Market instruments or units of debt, liquid or other mutual funds0%5%Low to Moderate

About the Scheme

Name of the fundMirae Asset NYSE FANG+ ETF Fund of Fund 
Fund launched byMirae Asset Mutual Fund  
Asset Management CompanyMirae Asset Trustee Company Private Limited
Type of schemeAn open-ended fund of fund scheme primarily investing its assets in units of Mirae Asset NYSE FANG+ ETF
Investment ObjectiveThe investment objective of the scheme is to generate long-term capital appreciation by investing its assets in the units of the underlying ETF i.e. Mirae Asset NYSE FANG+ ETF
BenchmarkNYSE FANG+ Index TRI (INR) 
Entry LoadNot Applicable
Exit Load

-If units redeemed or switched out within 3 months - 0.5% of applicable NAV

-If units are redeemed or switched out after 3 months - NIL

Taxation

Taxed as Non-Equity

-If units are sold within 3 years, gains will be added to income and taxed as per the investor's tax slab

-If units are sold after 3 years, gains are taxed with long-term capital gain tax @20% after indexation benefits

Minimum Application Amount ₹ 5,000 & in multiples of ₹ 1 thereafter
Minimum Additional Amount₹ 1,000 & in multiples of ₹ 1 thereafter
STP & SWPAvailable
Plans Available
  • Regular
  • Direct
Options
  • Growth
Fund ManagersMs. Ekta Gala

SIP Details

Type Minimum Amount
Monthly SIP₹5,000 & in multiples of ₹1 thereafter
Quarterly SIP₹5,000 & in multiples of ₹1 thereafter

https://www.miraeassetmf.co.in/docs/default-source/sid/scheme-information-document_mirae-asset-nyse-fang-etf-fund-of-fund-(1).pdf?sfvrsn=7a46a411_2

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