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Mirae Asset Investment Managers India has launched the Asset Equity Allocator Fund of Funds, an open-ended scheme predominantly investing in units of domestic equity exchange-traded funds.
The NFO will be open for subscription between September 8 and 15. The minimum initial investment in the scheme will be ₹5,000.
The fund will be benchmarked with the Nifty 200 Index. It will follow active asset allocation in Nifty50 ETF, Nifty Next50 ETF and Midcap150 ETF with exposure to the large- and mid-cap segments.
Swarup Mohanty, CEO, Mirae Asset Investment Managers, said the new fund will help investors optimise returns by actively rebalancing the portfolio based on the market scenario at minimal cost.
The Fund of Funds (FoF) provides benefit of using the mutual fund structure to make underlying investments in low-cost ETFs with benefits of equity fund taxation. Investors can make investments in SIP mode for their long-term planning without a demat account for making investments, he said.
Market volatility is expected to continue in the near to medium term as the spread of Covid-19 continues. In such a situation, allocation within equities, diversification into different categories and continuously rebalancing the portfolio to maintain the market-cap allocation become challenges for investors, he added.
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