Mirae Asset NYSE FANG+ ETF Fund of Fund NFO – Review
Do you want to invest in Top 10 US gaint stocks containing Google, Facebook, Twitter, Amazon, Tesla? Currently there are mutual funds in India which would either invest in few stocks in US stock market or in NASDAQ 100 Index. Mirae Asset has launched a new ETF and Fund of Fund (FoF) which would invest in FANG+ Index. Investors would get opportunity to invest in Facebook, Apple, Amazon, Netflix and Alphabets Google etc. by investing in this mutual fund scheme. Mirae Asset NYSE FANG+ ETF Fund of Fund would open for subscription on 19th April, 2021. Should you invest in Mirae Asset NYSE FANG+ ETF Fund of Fund NFO? What are the various risk factors associated with such funds?
Also Read: 5 Midcap Multibaggers that grown 1 Lakh upto 7.3 Lakhs in 1 year
Mirae Asset NYSE FANG+ ETF Fund of Fund NFO Details
This is an open-ended equity mutual fund scheme. Here are the NFO issue details.
|Scheme reopens for continuous purchase/sale||11-May-21|
|Minimum Lumpsum||Rs 5000|
|Minimum SIP||Rs 5000 for 6 months|
|NAV of the fund||Rs 10 during NFO period|
|Exit Load||< 90 days – 0.5%
> 90 days – Nil
|Max expense Ratio (TER)||1.00%|
|Benchmark||NYSE FANG+ Total Return Index (TRI) (INR)|
Download Mirae Asset NYSE FANG+ ETF Fund of Fund SID
What is the investment objective of Mirae Asset NYSE FANG+ ETF Fund of Fund NFO?
The investment objective of the scheme is to provide long-term capital appreciation from a portfolio investing predominantly in units of Mirae Asset NYSE FANG+ ETF. The underlying ETF would invest in NYSE FANG+ Index.
There is no assurance or guarantee that the investment objective of the scheme will be realized.
What is the allocation pattern in this mutual fund?
This fund investment pattern is as follows:
|Type of instruments||Min %||Max %||Risk Profile|
|Units of Mirae Asset NYSE FANG+ ETF||95%||100%||High|
|Money market instruments / debt securities, Instruments
and/or units of debt/liquid schemes of domestic Mutual
|0%||5%||Low to Medium|
What does NYSE FANG+ Index contain?
Here are the list of stocks which are part of this index.
5) Alphabet Google
Why to invest in the Mirae Asset NYSE FANG+ ETF Fund of Fund NFO?
Here are a few reasons to invest in such mutual fund schemes.
1) This fund would invest in ETF that would invest in overseas NYSE FANG+ Index. NYSE FANG+ Index is relatively new that was formed in 2017. This index has outperformed in the last 3.5 years and moved from 2,000 index points to 6,500+ points. In the last 1 year, this index generated 130% returns.
2) This fund invests in NYSE FANG+ Index which includes 5 core FANG stocks like Facebook, Amazon, Apple, Netflix, Alphabet Google and 5 other high growth technology stocks. These 10 stocks are highly traded growth stocks of next generation technology and tech-enabled companies. Investors can get opportunity to invest in these companies.
Some key risk factors you should consider before you invest in such funds
One should consider some of these risk factors / negative factors before investing.
1) This fund would invest in ETF that invests in NYSE FANG+ Index. This index is relatively new i.e. formed only in 2017. In medium to long term, we do not know how such index would be performed.
2) This fund invests in the NYSE FANG+ index companies. Investments in overseas countries would have currency risk and geopolitical risks.
3) It invests some part in debt instruments which are turned to be high risk these days.
4) You can refer complete risk factors in NFO Scheme Information Document.
Performance of underlying ETFs / Index Funds
NYSE FANG+ index was formed in 2017, the data from 2014 to 2017 is back tested index calculations. Here is the performance of the underlying index.
1) 1 Year returns – 132%
2) Annualized returns since 2014 – 34%
You may like: Top Performing Funds in last 15 years
Mirae Asset NYSE FANG+ ETF Fund of Fund NFO – Should you invest?
Mirae Asset NYSE FANG+ ETF Fund of Fund invests in ETF that would invest in NYSE FANG+ Index. Earlier, I have recommended a few times to invest in Motilal Oswal NASDAQ ETF that outperformed in the last 5-10 years. This NYSE FANG+ Index too outperformed and generated 32% annualized returns in last 7 years compared to NASDAQ 100 which generated 12.5% annualized returns. While this new fund is good, this is high risk fund considering the short term performance + overseas investment. If you are high risk investor, you can invest in this new fund for 5-10 years time frame. Moderate to low risk investors should avoid such funds.
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I am investing in above ETF through weekly SIP(only for 10 units each week but it may increase later on) besides my main mutual funds investment ( which consists diversified mutual funds including foreign funds) and wish to continue it at least for 15 years. Whether, my idea for long term investment in FANG+ ETF is good or bad? Thank you very much sir.
Long term of 15 years is good, you can continue to invest.
NAV of this MAFANG fund was Rs. 10 as per the prospectus but after allottment it was put at Rs. 48.60 and accordingly units got reduced by nearly 5 times. why it is so?
Hello Saindranath, The NAV of mutual fund would start at Rs 10 during NFO offer and later would go up or down depending on the performance.
But looks you have invested in ETF where the unit value is showing 49 now. The NAV of ETF would be computed by the net investments (total investments minus liabilities) / total shares outstanding. As an example if mutual fund collected Rs 1,000 and invested in company at Rs 500 per share i.e. 2 shares only. The NAV would be 1,000/2 = Rs 500. This is how ETF NAV is computed which is completely different from mutual fund NAV.
Hello Suresh Ji,
I don’t have any foreign exposure in my portfolio. Should i go with Mirae Asset NYSE FANG+ ETF Fund of Fund??? and what is the difference between Mirae Asset NYSE FANG+ ETF & Mirae Asset NYSE FANG+ ETF Fund of Fund. Pls give your valuable comments.
Yes, you can invest in such funds, but don’t expect immediate returns as stock markets are at peak even in US. First one is ETF (you need demat account for this) and second one is mutual fund that invests in this ETF (you do not need demat account, you can just invest like any other mutual fund). I would recommend go for second option.
Very good info. As I am already invested in Nasdaq100, US Bluechip & Parag Parikh FlexiCap
Do you think investing in this will add more diversification?
I responded on your other comment.
Hi I am already investing in
ICICI US Bluechip
Do you think adding this would be overlapping or diversification?
What is your opinion? Should I avoid or invest?
Hello Shriram, Since you have two international funds and another flexicap fund that invests in US markets too, there is an overlapping of funds. If your overall portfolio has 10% or 15% from international funds, then avoid, else you can consider this fund too.