The Mirae Asset Nifty Total Market Index Fund NFO presents a unique opportunity for investors to gain comprehensive exposure to the Indian stock market. This fund tracks the Nifty Total Market Index, which consists of 750 stocks spanning large-cap, mid-cap, small-cap, and micro-cap segments. Offering broad diversification across 22 sectors, the fund is designed for investors looking to capitalize on India’s long-term growth potential through a low-cost, passive investment strategy.
The NFO period runs from 8th October to 22nd October 2024, making it an ideal entry point for investors eager to tap into India’s expanding market.
Key Highlights of the NFO
Investment Strategy
The Mirae Asset Nifty Total Market Index Fund will follow a passive investment strategy, mirroring the Nifty Total Market Total Return Index. With a focus on minimizing tracking error, the fund will invest 95-100% in equity securities that make up the index. It will offer exposure across large, mid, small, and micro-cap segments, ensuring a well-diversified portfolio. For liquidity management, the fund may invest up to 5% in money market instruments or debt securities. This simple and effective strategy allows investors to capture the full growth potential of the Indian stock market with minimal risk.
Stock and Sector Constituents
The Nifty Total Market Index offers extensive diversification by including top stocks and sectors across various market segments. HDFC Bank Ltd. leads with a weightage of 6.17%, followed by Reliance Industries Ltd. (5.11%) and ICICI Bank Ltd. (4.33%). Technology giants like Infosys Ltd. (3.52%) and Tata Consultancy Services Ltd. (2.31%) also feature prominently, along with ITC Ltd., Larsen & Toubro, Bharti Airtel, and State Bank of India.
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In terms of sectors, Financial Services dominate the index with a weightage of 26.97%, followed by Information Technology (9.64%) and Oil, Gas & Consumable Fuels (8.47%). Other sectors such as Automobile and Auto Components (7.37%), FMCG (7.18%), and Healthcare ensure a balanced and diversified portfolio that minimizes risk while maximizing growth potential.
Why Total Market Strategy?
The Nifty Total Market Index is an attractive strategy because it provides broad exposure to the entire Indian market, covering 750 stocks across large-cap, mid-cap, small-cap, and micro-cap segments. It represents approximately 96% of the total market capitalization of companies listed on the NSE, ensuring investors are well-positioned to benefit from both established blue-chip companies and emerging growth stocks.
The index spans 22 sectors, offering significant diversification. Additionally, the Nifty Total Market Index has consistently outperformed other major indices like Nifty 500, Nifty 200, Nifty 100, and Nifty 50 across all time periods, including in 12 of the last 19 calendar years (as of YTD 2024). This makes it a strong and reliable choice for investors seeking to capture the full growth potential of the Indian economy.
Conclusion
The Mirae Asset Nifty Total Market Index Fund NFO provides an exceptional opportunity for investors to gain comprehensive exposure to India’s entire market landscape. By investing across large, mid, small, and micro-cap stocks, this fund offers a well-diversified approach aligned with the Nifty Total Market Total Return Index. With its low tracking error and broad sectoral representation, this fund is an ideal choice for investors looking to benefit from India’s long-term growth potential and capitalize on diverse opportunities across key industries.
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