NFO Alert: Mirae Asset Mutual Fund launches Mirae Asset Nifty IT ETF; all you need to know

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objective of the scheme is to generate returns, before expenses, that are commensurate with the performance of the Nifty IT Total Return Index, subject to tracking error. There is no assurance or guarantee that the investment objective of the scheme will be achieved.

Investors can invest under the scheme with a minimum investment of ₹5000 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:Indicative allocations (% of total assets)MinimumMaximumEquity and Equity Related Securities of companies constituting the Nifty IT Index, the Underlying Index95%100%Very HighCash and Cash Equivalents0%5%Low to Medium The asset allocation component will also encompass subscription and redemption cash flows that might remain uninvested for various reasons, such as dividends from underlying securities, rebalancing, mutual funds set aside for the operational expenses of the scheme, or residual amounts resulting from rounding off during execution. To date, many asset management companies (AMCs) have launched such exchange-traded funds (ETFs), thus, allowing inclined investors to avail of returns corresponding to the total returns of the securities in this particular index.

These include:Mutual Fund HouseIT ETFNippon India Mutual FundNippon India ETF Nifty ITICICI Prudential Mutual Fund ICICI Prudential IT ETFKotak Mutual FundKotak It ETFSBI Mutual FundSBI ETF ITAxis Mutual FundHDFC Mutual FundAditya Birla Sun Life Mutual Fund The Nifty IT index tracks the performance of Indian IT companies, consisting of 10 firms listed on the National Stock Exchange (NSE). This index is calculated using the free float market capitalisation