Stocks

Mirae to launch 2 ETFs on Tuesday

Our Bureau Mumbai | Updated on October 26, 2020 Published on October 26, 2020

Swarup Mohanty, CEO, Mirae Asset Global Invesments (India)

Both funds are on ESG theme

Mirae Asset Investment Managers India has announced launch of two ETFs based on ESG (Environmental, Social and Governance) companies for the India’s first ever. The new fund offer of both the funds will open for subscription on Tuesday and close on November 10.

Mirae Asset ESG Sector Leaders ETF, an open-ended scheme, will track Nifty 100 ESG Sector Leaders Total Return Index while ‘Mirae Asset ESG Sector Leaders Fund of Fund will predominantly invest in Mirae Asset ESG Sector Leaders ETF.

The new index by NSE comprises true to the label ESG focused portfolio with underlying research by Sustainalytics, one of the leading ESG research provider globally. The index consists of companies which have scored well on the management of ESG factors. The index excludes companies with significant ongoing controversy and hence reduces price risk associated with it.

Outperforms

Nifty 100 ESG Sector Leader Index has outperformed Nifty 100 and Nifty 50 indices historically with lower price volatility and better return to risk profile. The ESG index has outperformed over 90 per cent of large-cap funds (Regular plan) for an investment horizon of three years.

Swarup Mohanty, CEO, Mirae Asset Investment Managers India, said companies that integrate the focus on planet, people and profit into its core corporate structure tend to have a positive impact and have competitive advantage over others, which in turn could translate to sustainable profit in the long run.

Globally, challenges like climate change, issues pertaining to mis governance, labour rights and data privacy have led investors to seek out companies that operate in a sustainable, socially responsible and ethical manner, he said.

The minimum initial investment in both the schemes will be ₹5,000 and multiples of ₹1 thereafter.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on October 26, 2020
This article is closed for comments.
Please Email the Editor