 "Mirae Asset launches 2 funds targeting India's emerging consumer landscape")
Mirae Asset Investment Managers (India) has launched two funds to provide investors with an opportunity to potentially participate in the evolving consumption landscape of India, driven by changing demographics and rising discretionary spending.
The two funds are Mirae Asset Nifty India New Age Consumption ETF and Mirae Asset Nifty India New Age Consumption ETF Fund of Fund.
Mirae Asset Nifty India New Age Consumption ETF is an open-ended scheme replicating/tracking the Nifty India New Age Consumption Index, while Nifty India New Age Consumption ETF Fund of Fund is an open-ended fund of fund scheme investing in units of the ETF.
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The Nifty India New Age Consumption Index comprises 75 stocks representing segments like Ecommerce, Fintech, Wealth Management, Tours & Travels, Real estate, Consumer electronics, entertainment etc. which capture emerging discretionary and aspirational spending by Indian consumers. The index focuses on India’s non-food spending in the business-to-consumer discretionary segment.
“India’s spending patterns are evolving at a significant pace, fuelled by demographic advantages, rise of new age companies, digitalisation, higher access and increasing penetration and rising disposable incomes. The Mirae Asset Nifty India New Age Consumption ETF and Fund of Fund are designed to potentially capture this transformation, providing investors with a gateway to participate in the growth of India’s discretionary & aspirational consumption segment,” said Siddharth Srivastava, Head-ETF Product & Fund Manager at Mirae Asset.
Market context
Recent data reveals a remarkable shift in consumer spending patterns. As of June 2024, rural India allocated 54 per cent of its monthly expenditure to non-food discretionary items, while urban areas spent 61 per cent on similar discretionary purchases. This trend is underpinned by India’s growing per capita GDP, which has now exceeded USD 2,000.
Fund details
Mirae Asset Nifty India New Age Consumption ETF
Objective of scheme: The Mirae Asset Nifty India New Age Consumption ETF will be managed passively with investments in stocks in the same proportion as in the Nifty India New Age Consumption Index. The investment strategy of the scheme will be to invest in a basket of securities forming part of Nifty India New Age Consumption Index in similar weight proportion.
New Fund Offer (NFO) period: December 12-20, 2024.
Reopening for trading: December 27, 2024
Minimum subscription amount: Schemes require a minimum initial investment of Rs 5,000, with subsequent investments possible in multiples of Re 1.
Mirae Asset Nifty India New Age Consumption ETF Fund of Fund
Objective of scheme: As per investment objective, the scheme will be managed passively with investment in units of Mirae Asset Nifty India New Age Consumption ETF. Investments made from the net assets of the Scheme would be in accordance with the investment objective of the Scheme and the provisions of the SEBI (MF) Regulations.
NFO period: December 12-26, 2024.
Reopening for trading: January 3, 2025
Minimum subscription amount: Schemes require a minimum initial investment of Rs 5,000, with subsequent investments possible in multiples of Re 1.
Who should invest
Investors looking for long-term opportunities in India’s growing discretionary and aspirational spending trends might find these new schemes appealing. These offerings present a distinct chance to benefit from the shifting consumption patterns fueled by demographic changes and economic expansion.