Mirae Asset Unveils Hybrid ETF: Tackling Market Volatility by Blending Nifty200 Momentum and G-Secs

Mirae Asset Unveils Hybrid ETF: Tackling Market Volatility by Blending Nifty200 Momentum and G-Secs​

Mirae Asset Investment Managers has launched a new hybrid Exchange Traded Fund (ETF): the Mirae Asset Nifty200 Momentum 30 Plus 8-13 yr G-Sec 50:50 ETF. This fund is designed for investors seeking diversification by combining exposure to equity momentum with stability offered by government securities. The ETF aims to replicate/track the performance of the Nifty200 Momentum 30 Plus 8-13 yr G-Sec 50:50 Total Return Index.

This new offering is categorized as a Hybrid Exchange Traded Fund (ETF) and is intended for investors seeking balanced growth potential alongside risk mitigation strategies. The fund's objectives are clearly defined, aiming to generate returns before expenses that are commensurate with the performance of its underlying index, subject to inherent tracking error.

Investment Strategy and Asset Allocation Breakdown​

The ETF maintains a clear structure focusing on replicating the blend of equity and debt components defined by its benchmark. Nearly all investments in the scheme must be directed towards securities included in the Nifty200 Momentum 30 Plus 8-13 yr G-Sec 50:50 Index, with an indicative allocation ranging from a minimum of 95% to a maximum of 100%.

For stability and liquidity, the fund allows for a minor exposure up to 5% in Money Market instruments. These include Treasury Bills, Government Securities, or Tri-party Repo on government securities or T-bills. This controlled allocation ensures the scheme remains tightly aligned with the primary objective—tracking the predefined index structure.

Understanding the Nifty200 Momentum and Debt Indices​

The fund's dual focus is critical to its design. The Equity Portion (50% of the index) tracks the Nifty200 Momentum 30 Index, which selects companies based on a Normalized Momentum Score derived from both 6-month and 12-month price returns. Weighting in this component uses a factor tilt methodology combining free float market capitalization and the momentum score.

The Debt Portion (50% of the index) focuses on the Nifty 8-13 yr G-Sec Index. This index represents the most active tenor of the Indian Government Securities (G-Sec) market, measuring the performance of liquid bonds with maturities between 8 to 13 years. The weights in this segment are based on a combined score factoring liquidity (40%) and outstanding amount (60%).

Risk Management and Performance Benchmarks​

As an ETF, the scheme is subject to both equity and debt market risks. The investment strategy is passive, meaning the AMC does not attempt to select stocks or take defensive positions beyond short-term mitigation measures. The fund monitors tracking error closely to minimize deviation from the underlying index performance.

The Scheme’s exposure to derivatives is capped at 20% of net assets for option premium payment and a combined gross cumulative exposure limit of 100%. This structured approach, along with defined limits on exposure to certain types of debt instruments (e.g., no more than 5% in unrated debt), highlights the rigorous risk management embedded within the fund structure.

Operational Details and Expense Structure​

The Asset Management Company (AMC) is committed to transparency regarding the scheme's costs. The maximum Base expense ratio (BER) permissible under regulations is up to 0.90% of the daily net assets. This BER covers various expenses, including investment management and advisory fees, audit fees, and custodial charges.

The fund aims to provide returns commensurate with the Nifty200 Momentum 30 Plus 8-13 yr G-Sec 50:50 Index. The units of the Scheme are listed on both the NSE and BSE, enabling continuous trading by all investors, including Market Makers who transact in Creation Unit Size multiples.

Leadership Driving the Hybrid Strategy​

The success of this hybrid portfolio relies on seasoned fund management. The scheme is managed by Ms. Ekta Gala, who has 7 years of experience and has managed various Mirae Asset ETFs. She partners with Ms. Pranavi Kulkarni, a veteran with 16 years in the financial sector, bringing extensive experience from her tenure at Edelweiss Asset Management Ltd.

The AMC affirmed that the Scheme Information Document adheres to all SEBI (Mutual Funds) Regulations, 2026, and is suitable for prospective investors seeking exposure to this specific blend of equity momentum and government debt securities.