Mirae Asset Mutual Fund seeks Sebi’s approval for mid, smallcap funds | Mutual Fund – Top Stories- QHN

Mirae Asset Mutual Fund (MF) has sought the regulator’s nod to launch an exchange-traded fund (ETF) tracking the Nifty MidSmallcap400 Momentum Quality 100 index.

While the industry has always had large and midcap funds, there is no scheme that offers exposure only to mid- and smallcap stocks.

“After taking feedback from the market, we realised there is an appetite for such a fund where the allocation to mid- and smallcap stocks will be around 70:30 from a weightage point of view,” said the fund house.

According to NSE Indices, the MidSmallcap400 Momentum Quality 100 index has the highest exposure to the financial services and capital goods sectors. As of January 31, they had a weight of 22 per cent and 19 per cent, respectively. The price-to-earnings (PE) ratio was 23, and the index has delivered nearly 60 per cent return in the one-year period.

This will be Mirae Asset’s second offering based on a ‘dual factor’ index. The fund house recently launched the Nifty Smallcap 250 Momentum Quality 100 ETF, which also picks stocks based on momentum and qualitative factors like higher profitability, lower leverage and better stability.

In the fund presentation, the fund house noted that the index also excludes stocks with low volumes and higher instances of price circuits, thus lowering the liquidity risk.

The Securities and Exchange Board of India (Sebi) issued an administrative warning to ICICI Securities on February 28. “The warning has been issued in connection with the inspection of books and records for the merchant banking activities of the company,” said the firm in an exchange disclosure. It added that the warning will not have any impact on the operations or financials of the company.

First Published: Feb 29 2024 | 10:20 PM IST