NFO: Mirae Asset Introduces Funds Focused On IPOs And Equal Weight Strategy

Mirae Asset Mutual Funds has launched four new schemes: Mirae Asset BSE Select IPO ETF, Mirae Asset BSE Select IPO ETF Fund of Fund, Mirae Asset BSE 200 Equal Weight ETF, and Mirae Asset BSE 200 Equal Weight ETF Fund of Fund. These schemes offer investors exposure to India’s IPO market and a diversified strategy across the top 200 BSE stocks.

NFO Details

The Mirae Asset BSE Select IPO ETF and Mirae Asset BSE 200 Equal Weight ETF opens today for subscription till March 5, 2025, with continuous sales and repurchases available from March 11, 2025.

Whereas Mirae Asset BSE Select IPO ETF Fund of Fund and Mirae Asset BSE 200 Equal Weight ETF Fund of Fund will start subscription from 25th February 2025 to 11th March 2025. These funds will be available for ongoing sale and repurchase from March 19, 2025.

The initial investment requirement for all four schemes during the New Fund Offer (NFO) is Re 5,000, with additional investments to be made in multiples of Re 1.

Mirae Asset BSE Select IPO ETF and Fund of Fund

According to Miare Asset, this fund is designed for investors looking to gain exposure to newly listed IPOs and spin-off companies among the top 500 by market capitalization. In order to prevent pre-mature volatility, stocks would be considered only after being listed for three months. A stock will have a maximum weight of 5 per cent to bring diversification into the basket. Once included, stocks will remain in the index for five years to capture their growth potential.

With a passive investment strategy, this fund offers a simple and cost-effective way to invest in newly listed companies without the hassle of tracking individual IPOs. The portfolio will be rebalanced quarterly to keep up with market trends and include fresh listings.

Mirae Asset BSE 200 Equal Weight ETF and Fund of Fund

According to Mirae Asset Mutual Fund, this fund adopts an equal-weight strategy, investing equally in all 200 companies in the BSE 200 Equal Weight Index, which includes both large-cap and mid-cap stocks. This approach offers diversified market exposure and helps minimize stock-specific risks.

The fund allocates 50 per cent weight to 100 large-cap companies and 50 per cent to the top 100 mid-cap companies. Large caps provide stability, especially in volatile markets, while mid-caps offer higher growth potential.

Siddharth Srivastava, Head-ETF Product & Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd. Said, “IPOs and spin-offs provide an opportunity for investors to participate in companies with growth potential or established business lines. With Mirae Asset BSE Select IPO ETF & Fund of Fund, we aim to offer a structured and diversified approach to investing in new companies post-listing.”

He added, “Mirae Asset BSE 200 Equal Weight ETF & Fund of Fund follows an equal-weighted strategy, offering balanced exposure to large-cap and mid-cap stocks while reducing stock-specific risk.”

Who should invest?

Mirae Asset Mutual Fund suggests the BSE Select IPO ETF for those who want to follow the BSE Select IPO Total Return Index. Those who want to invest in a mutual fund can invest in the BSE Select IPO ETF Fund of Fund.

Also, investors who desire exposure to the BSE 200 Equal Weight Total Return Index can select the Mirae Asset BSE 200 Equal Weight ETF or its mutual fund version, the BSE 200 Equal Weight ETF Fund of Fund. The four funds are categorized as Very High Risk, and investors need to consult with their financial advisor to determine suitability based on risk appetite and financial goals.