Mirae Asset Investment Managers has launched India’s first-ever exchange-traded fund tracking Nifty Financial Services Index.

The NFO of Mirae Asset Nifty Financial Services ETF, an open-ended fund replicating the index, will open for subscription on Thursday and close on July 29.

Financial services includes not only banks but also NBFCs, insurance, capital market which are currently under-penetrated among masses.

The ETF offers an opportunity for investors to participate in the sector that is one of the essential factors for the overall growth of the economy.

Financial services is undergoing rapid expansion due to digitalisation and the emergence of new products and services.

It is ideal for investors with an investment horizon of five years, said the fund house.

Swarup Mohanty, CEO, Mirae Asset Investment Managers, said the fund house intends to create a strong suite of passive products that will provide investors the option to take underlying index exposure in various segments of the market at low cost.

While the financial services sector has grown at a great pace and financial inclusion across the board has improved, it is still long way to go to reach even global averages, he said.

Mirae Asset Nifty Financial services ETF will invest in 20 companies representing various segments of the financial services sector. The index has generated 18 per cent per annum compared to 15 per cent each by Nifty and by Nifty Bank index in five years ended June. The ETF will have a total expense ratio of just 13 bps and listed on both NSE and BSE.

Liquidity will be created by the market maker appointed by the Asset Management Company.

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