Mutual Fund New Schemes: Mirae Asset Investment Managers India today launched India’s first ESG ETF, Mirae Asset ESG Sector Leaders. This is an open-ended scheme that follows the Nifty 100 ESG Sector Leaders Total Return Index. Apart from this, the fund house has also launched Mirae Asset ESG Sector Leaders Fund of Fund. It is also an open-ended fund of fund scheme, which mainly invests in the Mirae Asset ESG Sector Leaders ETF. The NFO subscription for both funds is open on 27 October and will close on 10 November 2020.
Investment of at least Rs 5000
An initial investment of at least Rs 5,000 can be made in both schemes. After this, investments in multiples of Rs 5000 can be made. Both funds will be managed by Bharti Sawant and will be benchmarked against the Nifty 100 ESG Sector Leaders Index (TRI). Mirae Asset ESG Sectors Leaders Fund of Fund is also offering investors the option of regular plans and direct plans, in which the option of growth option and dividend option (return payment and reinvestment) will be given.
Characteristics of the fund
- The Nifty 100 ESG Sector Leaders Index will be tracked by both funds.
- This new index of NSE is exactly the same as the label ESG Focused Portfolio, which is being done by Research SustainAnalytics, the world’s leading ESG research provider.
- This index includes companies that have achieved a good place in managing factors such as environment, social and governance (ESG).
- This index does not include companies that are having a big dispute and in this way the risk of price associated with it is reduced.
Returns better than large-cap funds!
From a 3-year investment perspective, the Nifty 100 ESG Sector Leaders Index has outperformed over 90% of large-cap funds (regular plans). In this, the returns can be better than the risk. The Nifty 100 ESG Sector Leader Index has outperformed the Nifty 100 and the Nifty 50 Index saw lower price movements. There is a comparatively cheaper option available in it, which can give a chance to further your wealth by investing in companies with responsible and sustainable business models.
Swaroop Mohanty, CEO of Mirae Asset Investment Managers India Private Limited, said that companies that incorporate Planet, People and Profit (ie planets, people and profits) into their core corporate infrastructure can all have a positive impact on stakeholders. And are competitively advantageous over others. This can keep them in sustainable profitability in the long run.
(Source: NSE, September 2020 and Morning Star, September 2020)