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
- The initial universe for the portfolio will comprise stocks listed on a major US stock exchange.
- Only the stocks with a market capitalization of at least USD$5 Billions will be selected for the portfolio.
- Stocks representing the high growth technology and internet or media industry will be included in the index.
- Stocks with a trailing daily traded volume of USD 50 million can be included in the index.
Top 10 Constituents - NYSE FANG+ Index
| Stock | Weightage |
| Baidu | 14.4% |
| 12.1% | |
| Alphabet | 11.0% |
| Netflix | 9.4% |
| NVIDIA | 9.3% |
| Apple | 9.1% |
| Tesla | 9.1% |
| Amazon | 8.9% |
| 8.6% | |
| Alibaba | 8.3% |
NYSE FANG+ Index - Sector Weightage
| Sector | Weightage |
| Interactive Media & Services | 46.1% |
| Internet & Direct Marketing Retail | 17.1% |
| Entertainment | 9.4% |
| Semiconductors & Semiconductor Equipment | 9.3% |
| Technology Hardware, Storage & Peripherals | 9.1% |
| Automobiles | 9.1% |
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
| Instruments | Minimum % 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 funds | 0% | 5% | Low to Moderate |
About the Scheme
| Name of the fund | Mirae Asset NYSE FANG+ ETF Fund of Fund |
| Fund launched by | Mirae Asset Mutual Fund |
| Asset Management Company | Mirae Asset Trustee Company Private Limited |
| Type of scheme | An open-ended fund of fund scheme primarily investing its assets in units of Mirae Asset NYSE FANG+ ETF |
| Investment Objective | The 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 |
| Benchmark | NYSE FANG+ Index TRI (INR) |
| Entry Load | Not 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 & SWP | Available |
| Plans Available |
|
| Options |
|
| Fund Managers | Ms. 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 |