The objective is to generate returns, before expenses, that are commensurate with the performance of the Nifty PSU Bank Total Return Index, subject to tracking error. The scheme does not guarantee or assure any returns.
The scheme will be benchmarked against Nifty PSU Bank TRI (Total Return Index). It will be managed by Ekta Gala and Akshay Udeshi. The maximum total expenses ratio (TER) permissible under Regulation 52 (6) (c) will be up to 1%. The creation unit size for the scheme shall be 50,000 units.
The minimum investment amount will be Rs 5,000 per application and in multiples of Re 1 thereafter. Units will be allotted in whole figures and the balance amount will be refunded.
The scheme will invest 95-100% in securities included in the Nifty PSU Bank Index and 0-5% in money market instruments including Tri Party REPO/ debt securities, instruments and/or units of debt/liquid schemes of domestic mutual funds.
The Mirae Asset Nifty PSU Bank ETF will be managed passively with investments in stocks in the same proportion as in the Nifty PSU Bank Index. The investment strategy of the scheme will be to invest in a basket of securities forming part of Nifty PSU Bank Index in similar weight proportion. The scheme will be suitable for investors who are seeking returns that are commensurate with the performance of Nifty PSU Bank TRI, subject to tracking error over long term and want investments in equity securities covered by Nifty PSU Bank TRI. The principal invested in the scheme will be at “very high” risk according to the riskometer of the scheme. In the last one year, Nifty PSU Bank – TRI offered 61.24% return whereas in the last six months, the benchmark gave 18.79% return. At present, there are around five schemes which are benchmarked against Nifty PSU Bank TRI. In the last one year, these schemes gave an average return of around 60.64% with the highest return being offered by ICICI Prudential Nifty PSU Bank ETF of around 60.93%.
Mirae Asset Mutual Fund has filed a draft document with Sebi for Mirae Asset Nifty Metal ETF and HSBC Mutual Fund has filed draft for HSBC India Export Opportunities Fund.
