NFO Alert: Mirae Asset Mutual Fund launches Nifty50 Equal Weight ETF

Mirae Asset Mutual Fund has launched the New Fund Offer (NFO) for the Mirae Asset Nifty50 Equal Weight ETF, an open-ended scheme replicating/tracking the Nifty50 Equal Weight Total Return Index. According to a release by the fund house, the ETF aims to offer investors equal-weighted exposure across all Nifty 50 stocks.

The NFO is currently open for subscription and will close on May 6. The scheme will reopen for continuous sale and repurchase from May 12.

During the NFO period, the minimum initial investment is Rs 5,000, with subsequent investments in multiples of Re 1. The fund will be jointly managed by Ekta Gala and Akshay Udeshi.

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The Nifty50 Equal Weight Index assigns equal weight (~2%) to all Nifty 50 large-cap stocks, reducing concentration risk in individual stocks and offering better diversification. This structure gives relatively more weight to tail-end stocks, making the index more representative of broader market trends, the release noted.

The index tends to exhibit cyclical performance—potentially outperforming during broad-based market rallies but underperforming during corrections or when markets are led by a few large-cap names.

“This ETF seeks to capitalise on opportunities in the large-cap segment during phases of broad-based economic growth, by providing equal opportunity to each company in the Nifty 50,” said Siddharth Srivastava, Head – ETF Products and Fund Manager, Mirae Asset Investment Managers (India).

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Investors looking for more diversified exposure to Nifty 50 stocks—with lower concentration in top constituents and increased participation from tail stocks—may find this strategy appealing. It is particularly suited for periods of broad market participation, when gains are more evenly distributed across sectors and companies.