Mirae Asset Nifty India Manufacturing ETF FoF

    

Mirae Asset Nifty India Manufacturing ETF FoF

(An open ended fund of fund scheme investing in Mirae Asset Nifty India manufacturing ETF)

NFO Period - 10th Jan to 24th Jan 2022

Allotment date - 31st Jan 2022

Re-open for continuous sale and re-purchase- 1st Feb 2022

It is an open ended fund of fund scheme investing predominantly in Mirae asset Nifty India manufacturing ETF.

Manufacturing : the potential to be major driving force for Indian economy

Contribution to GDP

Manufacturing sector plays a major role in India's GDP, which is expected to increase to 20% this decade.

Potential Expansion

PLI to promote companies to invest over U$ 20 Bn in capex

Medical Devices

Medical Devices Market size may reach $50 Bn by 2025

Electronics

Largest allocation in PLI scheme with focus to increase value addition Auto 

Auto

Key beneficiary of PLI allocation with Focus on Battery for EV push

Govt. Focus

~ Rs 2 Tn PLI scheme push into production activities

The  Govt. initiative to push manufacturing sector, Segments ie. Electric vehicles, Electronics, Battery tech, defense etc. could be the major beneficiary .

India government major initiatives towards manufacturing sector

• Production linked incentive
• Make in India
• National manufacturing facility
• Skill India
• Samarth Udyog
• Industry 4.0

Increased government support and policies to strengthen the manufacturing sector in India.

Nifty India Manufacturing Index

The Nifty India Manufacturing Index aims to track the performance of stocks that represent manufacturing sectors in India. The manufacturing sector is a vital part of India's economy accounts for approximately 17% of the countries GDP (source: MOSPI).

In light of the large size and strategic importance of the domestic Indian manufacturing sector, NSE Indices Ltd. created the Nifty India Manufacturing Index. Which consists of stocks from the combined universe of Nifty 100, Nifty Midcap 150 and Nifty Small cap 50 index. 

Stocks forming part of the eligible shortlisted basic industries that broadly represent the Indian manufacturing sector. The Index has a base date of April 01,2005 with a base value of 1000.

While selecting stocks 6 months average free float market capitalization is considered. and it is reviewed semi-annually.

Number of constituents 79

Top companies that provide around 75% coverage of  free float market of eligible stocks within each eligible basic industry of the combined universe.

Maximum weight of each stock is capped at 5%

 What is an ETF?

Sector Representation 

Sector                                     Weight(%)

AUTOMOBILE                                                 20.29 

INDUSTRIAL MANUFACTURING               20.17 

PHARMA                                                          17.77 

METALS                                                            14.76 

OIL & GAS                                                         8.76 

CHEMICALS                                                     6.76 

CONSUMER GOODS                                        6.69 

FERTILISERS & PESTICIDES                          3.72

TEXTILES                                                           1.08

Top constituents by weightage 

Company’s Name                            Weight(%)   

Reliance Industries Ltd.                        4.64 

Sun Pharmaceutical Industries Ltd.    4.19 

Tata Steel Ltd.                                        3.99 

Maruti Suzuki India Ltd.                        3.98 

Tata Motors Ltd.                                     3.49 

Mahindra & Mahindra Ltd.                    3.24 

Hindalco Industries Ltd.                         3.19 

JSW Steel Ltd.                                        2.98 

Divi's Laboratories Ltd.                          2.74 

Dr. Reddy's Laboratories Ltd.                 2.73

Nifty India Manufacturing Index periodic performance 

Index Name           Nifty India Manufacturing Index        Nifty 50 Index       Nifty 500 Index 

Since Inception                            14.5%                                        14.9%                       14.8%                15 Years                                       11.7%                                       11.6%                        11.8% 

10 Years                                       14.2%                                        14.8%                      15.7%                    

7 Years                                         9.7%                                         11.6%                     12.6% 

5 Years                                         11.9%                                       17.1%                      17.0% 

3 Years                                         16.4%                                       17.4%                      18.5% 

1 Years                                         40.8%                                        32.5%                     38.1%

Source: NSE Indices Limited, Data as on Nov 30, 2021, Past performance may or may not sustain in future. The index return are in Total Return Variant. The data shown above pertains to the Index and does not in manner indicate performance of any scheme of the Fund.

Why Mirae Asset Nifty India Manufacturing ETF and Fund of Fund ?

• Aims to provide potential broad exposure to the key manufacturing segments of Indian Economy 
• May potentially allow investor to participate in the growth of key manufacturing segments, which are the focus areas of the government through various initiatives like Production Linked Incentive (PLI) Scheme 
• Potential benefit from emerging spaces like Electric Vehicles, Defense, Electronics etc. 
•  Low overlap with NIFTY 50 and majority of active funds will potentially help investor diversify their portfolio. 
•  Has outperformed NIFTY 50 Index, in last 6 out of 8 calendar years (including 2021 YTD) (Refer Slide no. 31 for details) 
•  Provides relatively low cost and rule based investment approach to take exposure in manufacturing them.
• Do watch my YouTube video on Mirae Asset Nifty India Manufacturing ETF FoF.

NFO details for Mirae Asset Nifty India Manufacturing ETF Fund of Fund

 

Benchmark - Nifty India Manufacturing Total Return Index (INR) 

Minimum Investment During NFO - Rs. 5000/- and in multiples of Rs. 1/- thereafter. 

Plan & Options - Regular Plan & Direct Plan with Growth and IDCW Option 

Fund Manager - Ms. Ekta Gala 

Systematic Investment Plan Amount -  Monthly and Quarterly: Rs.1000/-(and in multiples of Re.1/-) 

Minimum Additional Purchase Amount - Rs. 1000/-

First NAV Date / Scheme Reopening date - 1st February 2022 

Product Suitability

Taxation - Equity Taxation 

Exit Load - If redeemed within 3 months from the date of allotment: 0.50% If redeemed after 3 months from the date of allotment: NIL 

• NFO Period :10th January – 24th January 2022 

• Allotment Date : 31st January 2022 

Disclaimer - Mutual fund investments are subject to market risks , read all scheme related documents carefully.

Please consult your financial advisor before investing.