Mirae Asset launches innovative ETFs and funds to tap IPO boom and balance market risks

Mirae Asset Investment Managers (India) Pvt. Ltd. has announced the launch of New Fund Offers (NFOs) for two new Exchange-Traded Funds (ETFs) and two new Fund of Funds (FoFs). These funds provide investors with two distinct strategies:

A structured and diversified way to participate in the IPO segment and new spin-offs.

An equal-weight strategy based on the top 200 stocks.

The NFOs for Mirae Asset BSE Select IPO ETF and Mirae Asset BSE 200 Equal Weight ETF will open for subscription from February 24, 2025, to March 5, 2025, and will re-open for continuous sale and repurchase from March 11, 2025. Similarly, the Mirae Asset BSE Select IPO ETF Fund of Fund and Mirae Asset BSE 200 Equal Weight ETF Fund of Fund will be open for subscription from February 25, 2025, to March 11, 2025, and re-open on March 19, 2025. Both funds fall under the high-risk category.

Fund Highlights

Mirae Asset BSE Select IPO ETF: An open-ended scheme replicating/tracking the BSE Select IPO Total Return Index.

Mirae Asset BSE Select IPO ETF Fund of Fund: An open-ended FoF scheme investing in units of the Select IPO ETF.

Mirae Asset BSE 200 Equal Weight ETF: An open-ended scheme replicating/tracking the BSE 200 Equal Weight Total Return Index.

Mirae Asset BSE 200 Equal Weight ETF Fund of Fund: An open-ended FoF scheme investing in units of the Equal Weight ETF.

Expert Insights

"IPOs and spin-offs present opportunities for investors to participate in companies with significant growth potential or established business lines," said Siddharth Srivastava, Head of ETF Product & Fund Manager, Mirae Asset Investment Managers (India) Pvt. Ltd. "With these funds, we aim to offer a structured, disciplined, and diversified approach for exposure to newly listed companies post-listing."

The Equal Weight Strategy assigns an equal weight to each stock in a portfolio of 100 large-cap and 100 mid-cap companies. This reduces stock-specific risk and provides a balanced exposure across market segments. "This strategy works best when there’s broad-based market performance," Srivastava added.

Investment Details

Minimum Initial Investment: ₹5,000 during the NFO period.

Subsequent Investments: Multiples of ₹1.

Fund Management Teams

IPO ETF & Fund of Fund: Managed by Ekta Gala and Akshay Udeshi.

Equal Weight ETF & Fund of Fund: Managed by Ekta Gala and Vishal Singh.

Strategic Approach for Investors

The Mirae Asset BSE Select IPO ETF offers exposure to IPOs and spin-offs within the top 500 companies by market capitalisation. Newly listed stocks will be considered for inclusion three months post-listing to mitigate initial volatility. Stocks remain in the index for five years, allowing investors to capture short- to medium-term growth trends.

The Mirae Asset BSE 200 Equal Weight ETF offers equal exposure to all 200 stocks in the BSE 200 Index, comprising large- and mid-cap companies. Large-cap stocks offer stability during volatile market phases, while mid-cap companies provide high-growth potential.

Both strategies offer investors a cost-effective, disciplined approach to participate in India’s growth story—particularly as IPOs continue to surge across diverse industries like fintech, auto, e-commerce, healthcare, and new-age businesses.