NFO Monitor: Mirae Asset Mutual Fund launches BSE 500 and Nifty Top 20 based ETFs

Synopsis Mirae Asset has launched the BSE 500 Dividend Leaders 50 ETF and Nifty Top 20 Equal Weight ETF, offering investors access to consistent dividend payers and equal-weight exposure to India’s top 20 companies. Both NFOs close on December 10 and reopen on December 16. Mirae Asset Mutual Fund has announced the launch of Mirae Asset BSE 500 Dividend Leaders 50 ETF and Mirae Asset Nifty Top 20 Equal Weight ETF. The new fund offer or NFO of both these funds is open for subscription and will close on December 10. The funds will reopen for continuous sale and repurchase on December 16. Best MF to invest Looking for the best mutual funds to invest? Here are our recommendations. View Details » Mirae Asset BSE 500 Dividend Leaders 50 ETF is an open-ended scheme replicating/tracking the BSE 500 Dividend Leaders 50 Total Return Index, and Mirae Asset Nifty Top 20 Equal Weight ETF, an open-ended scheme replicating/tracking Nifty Top 20 Equal Weight Total Return Index. Also Read | Quant Mutual Fund increases exposure in select private banks; remains constructive on NBFC and 7 other sectors Live Events While the Mirae Asset BSE 500 Dividend Leaders 50 ETF provides exposure to companies that have demonstrated long-term consistency in dividend payouts, strong balance sheets and healthy cash flows—features that often reflect business quality and resilience, Mirae Asset Nifty Top 20 Equal Weight ETF provides an equal exposure to top 20 companies from Nifty 50 Index that command nearly half of India’s market cap and are leaders in several segments like Telecom, banking, automotive, infrastructure etc, according to a press release by the fund house. “Dividend leaders seek to offer a unique blend of stability and long-term wealth creation potential. These companies have demonstrated consistency in dividend payouts, sound governance and financial discipline. With the Mirae Asset BSE 500 Dividend Leaders 50 ETF, our aim is to offer investors a robust, transparent and relatively cost-efficient way to access high-quality businesses that can provide both steady dividend income and long-term growth.” said Siddharth Srivastava, Head - ETF Products & Fund Manager, Mirae Asset Investment Managers (India). “On the other hand, Mirae Asset Nifty Top 20 Equal Weight ETF is a play on the driving force of India’s growth. These market leaders anchor India’s financial, Infrastructure, IT, and consumption engines. The equal weight strategy helps in avoiding concentration risk seen in market-cap weighted indices,” Srivastava added. Mirae Asset BSE 500 Dividend Leaders 50 ETF The ETF will track the BSE 500 Dividend Leaders 50 Index that identifies companies from the BSE 500 that have consistently paid dividends. The ETF will invest in constituents of the BSE 500 with at least 5 years of listing history and consistent dividend payments (minimum 80% of times in the past 10 years or since listing). Dividend strategies, including higher dividend yielding and dividend growth stocks, generate returns through both capital appreciation and the regular income received from dividends. Such stocks seek to provide a regular source of income via dividends in addition to returns from stock price appreciation. Dividend stocks often have strong balance sheets, healthy cash flows, and disciplined capital allocation, reflecting overall business quality, making a case for investment for investors who are seeking companies with strong fundamentals. Also Read | Sectoral, thematic mutual funds lead returns chart in Nov with up to 11% gains. What’s next for investors? Mirae Asset Nifty Top 20 Equal Weight ETF The ETF will invest in market leaders -- India’s top 20 largest and perhaps most influential listed companies. These companies command 46.5% of the market cap and are drivers of India’s growth through leadership in infrastructure, digital adoption, financial inclusion, and manufacturing scale-up. Large-cap companies often display stronger financial fundamentals and are typically the established leaders within their respective industries. They also have advantage over their smaller peers as they experience relatively lower volatility than the broader market and thus often exhibit lower drawdowns during market stress. The ETF will be well diversified with representation from Financials, IT Services, Consumer, Automobiles, and Telecom in one portfolio. Every company will get equal weight in the ETF thus avoiding concentration risk. (Catch all the Mutual Fund News, Breaking News, Budget 2024 Events and Latest News Updates on The Economic Times.) 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