Mirae
Asset Investment Managers (India) is offering asset management service in India
through 21 branches and has approximately assets of Rs. 71000 cr under
management. Some of the schemes like Mirae asset Emerging Bluechip fund, Mirae
asset large-cap fund, Mirae asset tax saver fund has delivered good returns in
recent years.
About the offering
Mirae
asset Investment managers have launched “NYSE FANG+ ETF” intending to invest in
the NYSE FANG+ index. Further Mirae asset is also offering “NYSE FANG+ ETF Fund
of Fund” which shall be investing in the NYSE FANG+ ETF.
For
those who are not able to understand, to invest via ETF option one needs to
have a Demat account and hence those who want to invest without a Demat account
may invest through a second option which is Fund of Fund (FOF). Investing
through FOF is like normal mutual fund investing.
The
details of the scheme as under:
|
|
Mirae Asset NYSE FANG+ ETF |
Mirae Asset NYSE FANG+ ETF Fund of
Fund |
|
Scheme |
An
open-ended passive scheme investing in stocks in the NYSE FANG+ index in the same
proportion |
An
open-ended FOF investing in NYSE FANG+ ETF |
|
Objective |
The investment objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the NYSE FANG+ Total Return Index, subject to tracking error and forex movement. The Scheme does not guarantee or assure any returns. |
|
|
Fund
Manager |
Mr Siddharth Srivastava |
Ms.
Ekta Gala |
|
Minimum
Investment |
Rs. 5000 and multiples of Rs. 1/-
thereafter |
Rs. 5000 and multiples of Rs. 1/-
thereafter |
|
Listing |
National Stock Exchange and Bombay Stock
Exchange |
NA |
|
Plan |
NA |
Regular
Growth Plan and Direct Growth Plan |
|
Expense
Ratio |
0.33% |
Direct
Plan- 0.50% Regular
Plan- 1.00% |
|
Offer
Closes on |
30.04.2021 |
03.05.2021 |
|
Allotment
Date |
06.05.2021 |
10.05.2021 |
What are FANG+ Stocks?
The
scheme shall be investing in NYSE’s (New York Stock Exchange) FANG plus index.
The FANG is the term used for dominant US technology companies Facebook,
Amazon, Netflix & Google. The FANG+ index includes Apple, Tesla, Baidu,
Alibaba, Nvidia & Twitter. The companies in the index are some of the most
innovative companies and have dominated the world for a long.
The
services of these companies are used by people across the world. These
companies generate high profits and have high corporate governance standards.
The stocks of these companies have delivered good returns in the recent period.
The stock price of Tesla has grown 15 times in the past five years.
The
FANG+ index has delivered a Compound annual growth rate of 46.80%, 42.80%,
105.63% return in 5 years, 3 years, and 1-year time frame. The index has
outperformed all other major US indices.
Mr.
Sidharth Srivastava while discussing the objectives of the scheme informed
Mirae Asset NYSE FANG+ ETF and Fund of Fund will provide investors the option to take focused and equal-weighted exposure in the 10 high growth innovative technology companies which are at the forefront of several megatrends. Through these offerings, an investor can take low-cost exposure in global markets and participate in the growth story of these companies.
Whether you should invest?
It
is generally not recommended for investing in any fund at the time of the “New
Fund offer” due to higher costs involved in the initial stages of the launching
of a fund. The investor may consider investing in the fund in due course.
In respect of investment in NYSE FANG+ ETF, you may consider following before investing.
Suitable for
The
fund is suitable for the following categories of investors.
Aggressive Investors
The fund invests in 10 stocks only and
poses concentration risk. Further being a thematic fund it is riskier than the
focused funds. The FANG+ companies operate across the globe and are subject to different
regulatory environments. Any change in regulations may impact the business of
the companies.
However
because companies in the FANG+ index are one of the most innovative and
dominant companies, they may outperform the other listed companies.
The
aggressive investors looking for higher returns may invest in the scheme. The allocation
to the scheme shall not be more than 5% of the overall portfolio. Further, the
investors interested in investing in a concentrated portfolio of global leaders
and future technology disruptors may invest in the scheme.
Investors looking to Diversify
The investors
who want to diversify their investment geographically may consider investing in
the scheme. However, considering the concentrated nature of the scheme, the
investors may add another international mutual fund scheme investing on larger
indexes like S&P 500 or Nasdaq 100.
Long Investment Horizon
The investors shall invest with a
long-term horizon of a minimum of seven years. Those who want to invest in a shorter
time frame shall avoid the scheme.
Because
it is a passive fund, the investors must invest through the direct
plan to improve the return.
Not Suitable for
The
fund is not suitable for the following categories of investors
First time investors/Conservative investors
The scheme
is not suitable for first-time investors. Those investors may first invest in diversified
index funds. You may refer to our article Best mutual funds for beginners for
detailed study.
The
first-time investors who also want to take international exposure may consider the
Parag Parikh Flexi Cap fund.
Investors with Stable return expectations
The
FANG+ Index has delivered high returns in the recent past but the same is due
to the exceptional performance of some of the stocks in the index during recent
years. The returns of the index could be highly volatile. The under-performance of some of the stocks may adversely impact the return of the scheme. Investors
who desire stability in returns should avoid the scheme.
How to Invest?
Those
interested in the offering may invest by following the link below:
https://transact.miraeassetmf.co.in/investor/#openModal
Bottom-line
The
aggressive investors desiring higher returns may consider the scheme keeping in
view the overall asset allocation. The first-time investors or the conservative
investors may avoid investing in the scheme. If you are not sure about the
investment you may consult your financial advisor.
Sources
https://www.miraeassetmf.co.in/mutual-fund-scheme/etf-and-fof/mirae-asset-nyse-fang-plus-etf
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