New Fund Offer: You can also take advantage of the fast growth of America’s top companies. Fund house Mirae Asset Investment Managers (India) Pvt Ltd has launched the country’s first such passive product, through which investors will get the benefit of exposure to 50 mega-cap companies in the US. The fund house has launched two products. Mirae Asset S&P 500 Top 50 ETF is an open ended fund that tracks the S&P 500 Top 50 Total Return Index and another product is Mirae Asset S&P 500 Top 50 ETF Fund of Fund which is an open ended fund and has a maximum payout of Mirae Asset S&P 500 Top 50 ETFs to invest in.
The NFOs (New Fund Offers) of both the funds have opened on September 1 and investors have time till September 14-15 to subscribe. There is an opportunity till September 14 to invest in ETFs and till September 15 in Fund of Funds. Through Fund of Funds, investors will have the option of investing in direct plans and regular plans with growth option. Investors will have to invest at least Rs 5000 in both the options and thereafter in multiples of Rs.
Stock Tips: Despite profit booking in Nifty, bullish trend, golden chance of 10% profit in these two stocks within a month
Features of the S&P 500 Top 50 Index
- The S&P 500 Top 50 Index is designed to track the top 50 mega-cap companies included in the S&P 500 Index from various sectors in the US.
- This index tracks many sectors including IT to health sector, financial to consumer, energy to communication. Its total market cap is $23 trillion (Rs 1680 lakh crore), which is more than 8 times the GDP of India.
- The S&P 500 Top 50 has outperformed the Nifty 50 by nearly 10 times over the past 10, 5, 3 and 2 years.
- Every year this index is reworked in June, on an average of 5 years, four companies change every year. This means that the index keeps changing and remains relevant to the US market.
- Investing in this index will benefit investors from the weakness of the rupee.
- Diversification of country risk.
- The top 50 portfolios have given higher returns than the S&P 500 index.
Investors are investing fast in Arbitrage Funds, know what are Arbitrage Funds and should you invest in them?
Mirae Asset NFO Details
- Mirae Asset S&P 500 Top 50 ETF: This NFO has opened on 1st September and investors can invest in it till 14th September. The scheme will open for sale and repurchase on September 22. The listing of this ETF will happen within five working days of allotment.
- Mirae Asset S&P 500 Top 50 ETF Fund of Fund: This NFO is open from 1-15 September. This scheme will open for continuous sale and repurchase on 23rd September.