Mirae Asset Mutual Fund in India has announced the launch of Mirae Asset Nifty 100 Low Volatility 30 ETF. Mirae Asset ETF is a part of Mirae Asset Mutual Fund and is used for ETFs managed by Mirae Asset Investment Managers (India) Private Limited.
The fund will be managed by the fund manager, Ekta Gala of Mirae Asset Mutual Fund. During the NFO, an investor can invest a minimum of INR5,000 or any quantum above that in multiples of Re.1.
The firm writes that the Nifty100 Low Volatility 30 Index is a Smart Beta ETF that aims to measure the performance of the low volatile securities in the large market capitalisation segment. The firm says that Smart Beta ETFs aim to potentially combine the benefits of both active and passive investing. “Smart Beta ETFs are gaining popularity across the globe as they kind of have the potential to generate alpha by using different factors,” the firm writes.
Nifty 100 Low Volatility 30 index seems to have done well in the time of market distress, the firm says, adding that in the short-term it may be used as an investment during the time of a bear market or a choppy market.
In the long-term it can be potentially used for investment as the Nifty 100 Low Volatility 30 Index has generated higher risk-adjusted returns over a longer horizon.
It has relatively lower drawdown compared to a broad market as well as other factor indices
Provides alternate sectorial exposure which is different from the Nifty 100 Index.
Siddharth Srivastava, Head – ETF Product & Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd. Says: “Smart beta strategies typically capture factor exposures using systematic, rules-based approaches cost-effectively. Nifty 100 Low Volatility 30 Index aims to generate better risk-adjusted return over a longer horizon and provides alternate sectorial exposure. This fund may be used by investors who are cautious about portfolio volatility, and downside risk and are keen to generate long-term wealth with relatively lower risk.”
