Mirae Asset MF to launch Mirae Asset Nifty Metal ETF

Mirae Asset,  a global mutual fund asset manager, offering innovative investment solutions, has come up with its latest offering, the Nifty Metal ETF, which is set to capitalize on the growing momentum in India’s metal industry. This New Fund Offer (NFO) opens on 20th September 2024 and closes on 30th September 2024, providing investors with a chance to participate. The scheme will reopen for ongoing transactions from 4th October 2024, and listings on both NSE and BSE will occur within five business days after allotment.

Investment Focus

The Mirae Asset Nifty Metal ETF is designed to track the Nifty Metal Total Return Index. This index consists of 15 key stocks from India’s metals and mining sectors, covering companies involved in the extraction, processing, and distribution of materials such as iron ore, steel, aluminium, and copper. This fund will replicate the index performance with small tracking errors, and pre- and post-expenses.

Rising Metal Demand in India

India is one of the world’s top producers of metals like steel and aluminium. Demand is expected to shoot up sharply from here. Government schemes such as Steel PLI are expected to bring Rs.30,000 cr inflows of investments into the sector, propelling it further. Infrastructure development alone is expected to drive 25-30% of metal demand over the coming decade-something that puts the Nifty Metal Index in a good position.

Key Features of the ETF

The Mirae Asset Nifty Metal ETF has a minimum investment requirement of Rs.5,000, with no exit load applicable. The fund is managed by Ekta Gala and Akshay Udeshi, and it is ideal for investors with a long-term horizon of 5+ years. Additionally, equity taxation rules will apply to the investments made in this ETF. This ETF provides investors with both long-term and tactical exposure to the metal and commodity cycle.

Conclusion: In conclusion, with the Nifty Metal Index posting a 35% rise over the last year, the Mirae Asset Nifty Metal ETF could be a timely opportunity for investors aiming to benefit from India’s growing metal sector. This ETF will be a particularly interesting watch.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.