Mirae Asset BSE Select IPO ETF Fund of Fund - Direct (G): NFO Details

Mirae Asset Mutual Fund has launched the Mirae Asset BSE Select IPO ETF Fund of Fund - Direct (G), an open-ended scheme designed to provide investors exposure to recently listed Initial Public Offerings (IPOs) and spin-off companies within the top 500 firms by market capitalization. This fund aims to track the BSE Select IPO Index, offering a structured approach to investing in new listings while mitigating the risks associated with IPO volatility.

While the fund seeks to generate returns in line with the index, subject to tracking error, there is no guarantee or assurance of returns.

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Investment Objective and Strategy

Objective:
Mirae Asset BSE Select IPO ETF Fund of Fund - Direct (G) aims to generate returns that closely correspond to the BSE Select IPO Index, subject to tracking error. By investing in units of the Mirae Asset BSE Select IPO ETF, the scheme provides investors a systematic way to gain exposure to newly listed companies, while managing the risks associated with IPO investments.

Investment Strategy:
The fund follows a structured investment methodology, incorporating:

• Exposure to Recent IPOs: Focus on newly listed stocks within the top 500 companies by market capitalization.
• Listing Stability Check: New IPOs are considered for inclusion only after three months of listing to mitigate initial volatility.
• Stock Capping: A 5% cap per stock is applied to maintain diversification.
• Holding Period: Stocks remain in the index for up to five years, capturing medium-term growth potential.
• Sectoral and Market-Cap Diversification: Exposure across industries such as fintech, auto, e-commerce, healthcare, and new-age businesses.
   

Why Invest in the Mirae Asset BSE Select IPO ETF Fund of Fund?

• Efficient IPO Exposure: Provides investors a structured way to participate in IPO growth without direct IPO allotment challenges.
• Reduced Volatility: Stocks enter the index after a stabilization period, reducing post-listing price fluctuations.
• Diversified Portfolio: Sector and stock capping ensure broad exposure across industries.
• Long-Term Growth Potential: Holding period of up to five years allows participation in medium-term wealth creation.

Market Opportunity & Rationale

India is among the top global markets for IPOs, with companies across sectors such as fintech, automotive, e-commerce, and healthcare going public at an increasing rate. However, securing IPO allotments has become challenging due to high demand and oversubscription.

The Mirae Asset BSE Select IPO ETF Fund of Fund offers investors an efficient way to participate in the growth story of new-age businesses after listing, providing exposure to promising companies while maintaining diversification.

Disclaimer: This article is for educational purposes only and does not constitute investment advice. Investors should conduct their own research before making any investment decisions.