Starting now, Mirae Asset Mutual Fund has opened a new investment opportunity called the Mirae Asset BSE 200 Equal Weight ETF. You can subscribe to this fund until March 5, and after that, it will be available for buying and selling from March 11 onwards.
What is this fund all about? It’s designed to copy the BSE 200 Equal Weight Index, which includes 200 top companies in India. The goal of this fund is to help investors earn returns similar to this index, keeping in mind some small chances of errors along the way.
Why Choose an Equal Weight Strategy?
The cool thing about this investment is that it treats each company equally. This means every company in the index has the same chance to help you earn money. This strategy is popular around the world, especially for those who prefer a simple and passive way to invest.
You can start investing with a minimum of Rs 5,000, and after that, you can put in any amount in Re 1 increments.
Mirae Asset will also soon launch a related fund, called Mirae Asset BSE 200 Equal Weight ETF Fund of Fund, opening for subscriptions on February 25 and closing on March 11.
What Makes This Fund Special?
According to Siddharth Srivastava, who manages the fund, this equal-weighted strategy includes 100 large companies and 100 mid-sized companies. This helps you spread out your risk since you have many different companies in your portfolio.
Experts say this fund can be great for people who want a balanced investment across large and mid-sized companies. However, it’s important to know that it may not always be the best performer in every situation.
The fund will invest 95-100% in the companies in the BSE 200 Equal Weight Index and a small portion (0-5%) in safe money market instruments. This can help keep some money liquid for quick transactions.
Important Tips for Investors
Before deciding to invest, think about your existing investments. If you have overlapping stocks, this new fund might not add much variety to your portfolio. It’s best for those whose investments are not heavily focused on just one type of stock.
Overall, while the Mirae Asset BSE 200 Equal Weight ETF offers an exciting way to invest, always evaluate how it fits with your financial goals and comfort with risk.
Disclaimer: Information provided by experts may not reflect the views of the Economic Times or any other organization.
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