Mirae Asset launches two passive ESG funds2 min read . Updated: 27 Oct 2020, 08:19 AM IST
- Mirae Asset ESG Sector Leaders ETF and Mirae Asset ESG Sector Leaders Fund of Fund
- Both the funds will be managed by Bharti Sawant and will be benchmarked against the Nifty 100 ESG Sector Leaders Index (TRI)
Mirae Asset Mutual Fund has launched ndia’s first ESG ETF, ‘Mirae Asset ESG Sector Leaders ETF’, an open-ended scheme tracking NIFTY 100 ESG Sector Leaders Total Return Index and India’s first ESG Fund of Fund, the ‘Mirae Asset ESG Sector Leaders Fund of Fund’, an open-ended fund of fund scheme predominantly investing in Mirae Asset ESG Sector Leaders ETF.
The NFO for both the funds opens today, October 27 and will close on November 10.
Both the funds will be managed by Bharti Sawant and will be benchmarked against the Nifty 100 ESG Sector Leaders Index (TRI).
The ‘Mirae Asset ESG Sector Leaders Fund of Fund’ will offer investors the options for a Regular Plan and Direct Plan with Growth Option and Dividend Option (Pay-out & Re-investment).
Key Highlights of the two newly launched schemes are as below:
• Both funds will seek to track the performance of NIFTY 100 ESG Sector Leaders Index.
• This new index by NSE comprises of true to the label ESG focused portfolio with underlying research by Sustainalytics, one of the leading ESG research provider globally.
• Index consist of companies which have scored well on the management of Environmental, Social and Governance (ESG) Factors.
• Index excludes companies with significant ongoing controversy and hence reduces price risk associated with it.
• *NIFTY 100 ESG Sector Leader Index has outperformed NIFTY 100 and NIFTY 50 Indices historically with lower price volatility (i.e. better Return to Risk Profile). (*source: NSE, September 2020)
• NIFTY 100 ESG Sector Leaders Index has outperformed more than 90% of large-cap funds (Regular plan) for an investment horizon of 3 Year.
• Provides relatively low-cost option which may provide a chance to grow your wealth by investing in companies with responsible and sustainable business model
“Companies that integrate the focus on Planet, People and Profit into its core corporate structure tend to have a positive impact on all stake holders and have competitive advantage over others, which in turn could translate to sustainable profit in the long run. Globally, challenges like climate change, issues pertaining to mis governance, labour rights and data privacy have led investors to seek out companies that operate in a sustainable, socially responsible and ethical manner. ESG investing has gained popularity in global markets in the last few years because of its values-led investment philosophy, which has delivered good returns with positive impact on the society," says Swarup Mohanty, CEO, Mirae Asset Investment Managers India.
Mohanty added, “The Mirae Asset ESG Sector Leaders ETF and the Mirae Asset ESG Sector Leaders Fund of Funds now offer Indian investors the opportunity to invest in companies in line with their own core values. These underlying companies aim to delight all stakeholders by being sustainable from an environmental and social perspective along with having the best governance practices."
The minimum initial investment in both the schemes will be ₹5,000 and multiples of Re 1 thereafter.