About Mirae Asset Nifty200 Momentum 30 Plus 8-13 Yr G-Sec 50:50 ETF

The Mirae Asset Nifty200 Momentum 30 Plus 8-13 Yr G-Sec 50:50 ETF is an open-ended hybrid Exchange Traded Fund that seeks to replicate the performance of the Nifty200 Momentum 30 Plus 8-13 Yr G-Sec 50:50 Index.

The index maintains an equal allocation between two distinct asset classes:

• 50% in the Nifty200 Momentum 30 Index, which invests in companies demonstrating strong price momentum.
• 50% in Government Securities with maturities between 8 and 13 years, providing stability and income potential.

This combination aims to balance the higher return potential of equities with the defensive characteristics of sovereign bonds. The ETF follows a passive investment strategy and therefore does not rely on active stock selection.

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Investment Objective

The scheme seeks to provide returns, before expenses, that are commensurate with the performance of the Nifty200 Momentum 30 Plus 8-13 Yr G-Sec 50:50 Index, subject to tracking error.

There is no assurance that the investment objective will be achieved.

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Benchmark Explained

The benchmark is the Nifty200 Momentum 30 Plus 8-13 Yr G-Sec 50:50 Total Return Index (TRI).

It consists of:

• 50% allocation to the Nifty200 Momentum 30 Index, representing 30 high-momentum stocks selected from the Nifty 200 universe.
• 50% allocation to Government Securities with maturities between 8 and 13 years, representing sovereign debt issued by the Government of India.

The TRI version includes dividend income from equities while also reflecting returns from the underlying bond portfolio, making it the most comprehensive benchmark for evaluating the ETF.

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Benchmark Performance

Historically, combining momentum equities with Government Securities has helped investors balance growth and stability across market cycles. During equity bull markets, the momentum portfolio can contribute significantly to returns, while Government Securities may provide support during periods of market volatility or economic uncertainty.

Although the strategy may underperform pure equity funds during strong bull phases, it generally offers lower volatility and improved risk-adjusted returns over the long term.

Sahifund Interpretation – Benchmark

The benchmark represents an innovative asset allocation strategy by combining one of India’s strongest factor indices with long-duration Government Securities. This blend allows investors to participate in equity market growth while benefiting from the stability of sovereign debt. It is particularly suitable for investors seeking a disciplined, rules-based hybrid portfolio instead of making separate allocation decisions themselves.

Benchmark Performance Note: Historically, diversified portfolios combining equity momentum and Government Securities have demonstrated better downside resilience than pure equity portfolios, although returns may lag during sharp equity rallies. Investors should evaluate this ETF over complete market cycles rather than short-term performance.

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Fund Managers

Ekta Gala

Education: B.Com, Inter CA (IPCC)

Experience:

• Mirae Asset Mutual Fund
• ICICI Prudential Asset Management Company Ltd.

She has extensive experience in passive fund management and ETF operations.

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Pranavi Kulkarni

Education: B.E. (Computer Science), MBA (Finance)

Experience:

• Mirae Asset Mutual Fund
• Edelweiss Mutual Fund
• CRISIL Ltd.
• Yes Bank

She has experience in research, portfolio analytics and passive investment management.

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Sahifund Interpretation – Fund Managers

The ETF is managed by Ekta Gala and Pranavi Kulkarni, both of whom possess significant experience in passive investing, portfolio management and financial research. Since this is an index-tracking ETF, the fund managers’ primary responsibility is to minimise tracking error and efficiently replicate the benchmark rather than actively selecting securities.

Backed by Mirae Asset Mutual Fund, which has a strong reputation in the ETF and passive investing space, investors can expect disciplined portfolio management and operational efficiency. The long-term performance of the ETF, however, will primarily depend on the behaviour of the underlying benchmark rather than active management decisions.

Risk Factors

• The ETF invests 50% in momentum-based equities, which can underperform during market reversals or prolonged sideways markets.
• The remaining 50% allocation to 8–13 year Government Securities is exposed to interest rate risk. Rising interest rates may negatively impact bond prices.
• As a passive ETF, returns may differ slightly from the benchmark due to tracking error and operating expenses.
• Investors may experience lower returns than pure equity funds during strong bull markets because half the portfolio remains invested in debt.
• Since this is a new ETF, there is no live performance history available.
• Although the riskometer is High rather than Very High, investors should still be prepared for fluctuations arising from both equity and debt markets.

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NFO Positives

• Unique 50:50 combination of momentum equities and Government Securities, offering both growth and stability.
• Passive investment strategy eliminates stock selection bias and follows a transparent, rules-based approach.
• Government Securities improve portfolio resilience during periods of market volatility.
• Backed by Mirae Asset Mutual Fund, one of India’s leading ETF and passive investment managers.
• Zero exit load provides flexibility for investors.
• Suitable for investors seeking long-term wealth creation with lower volatility than pure equity funds.

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NFO Negatives

• Returns may lag diversified equity funds during prolonged bull markets.
• Long-duration Government Securities remain vulnerable to rising interest rates.
• Tracking error may cause actual returns to differ marginally from benchmark performance.
• New ETF with no historical NAV performance.
• Investors seeking aggressive wealth creation may find the 50% debt allocation too conservative.

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Similar Funds

• Mirae Asset Multi Asset Allocation Fund
• ICICI Prudential Multi Asset Fund
• SBI Multi Asset Allocation Fund
• Nippon India Multi Asset Allocation Fund
• Edelweiss Multi Asset Allocation Fund

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Final Sahifund Verdict

The Mirae Asset Nifty200 Momentum 30 Plus 8–13 Yr G-Sec 50:50 ETF is one of the more innovative passive investment offerings in the market. Instead of investing only in equities or debt, it combines high-momentum stocks with long-term Government Securities, creating a balanced portfolio designed to participate in market growth while reducing overall volatility.

The ETF is particularly attractive for investors who prefer asset allocation through a single investment rather than maintaining separate equity and debt portfolios. The passive investment strategy also eliminates fund manager stock-selection bias and ensures transparent index-based investing.

While the debt allocation may reduce returns during strong equity bull markets, it can provide meaningful downside protection during periods of market stress. For long-term investors seeking a disciplined and balanced investment approach, this ETF offers a compelling proposition.

Sahifund Rating: ★★★★☆ (4.5/5)

Recommendation

🟢 Recommended for investors with a 5–7 year investment horizon who want a balanced, low-maintenance investment combining equity growth and sovereign debt stability.

Investors seeking aggressive equity returns may prefer a pure Momentum ETF or Flexi Cap Fund, whereas this ETF is better suited as a core long-term allocation for balanced wealth creation.

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Frequently Asked Questions

Is the Mirae Asset Nifty200 Momentum 30 Plus 8–13 Yr G-Sec 50:50 ETF suitable for beginners?

Yes. Investors looking for a single investment that combines equity and debt can consider this ETF, provided they have a long-term investment horizon and understand the risks associated with both asset classes.

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How does this ETF allocate its investments?

The ETF follows the Nifty200 Momentum 30 Plus 8–13 Yr G-Sec 50:50 TRI, maintaining approximately 50% exposure to momentum-based equities and 50% exposure to Government Securities with maturities between 8 and 13 years.

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Why combine momentum stocks with Government Securities?

Momentum stocks provide long-term growth potential, while Government Securities help reduce portfolio volatility and may offer stability during periods of equity market weakness. The combination aims to improve overall risk-adjusted returns.

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Why is the Nifty200 Momentum 30 Plus 8–13 Yr G-Sec 50:50 TRI used as the benchmark?

The benchmark accurately reflects the ETF’s investment strategy by combining equity and debt in equal proportions. The TRI (Total Return Index) also includes dividend income from equities, making it a comprehensive measure of performance.

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What is the minimum investment amount?

The minimum investment during the NFO is Rs.5,000.

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Is there any exit load?

No. There is no exit load, allowing investors to redeem units without any exit charge.

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What are the key risks of investing in this ETF?

The major risks include equity market volatility, momentum factor risk, interest rate risk affecting Government Securities, tracking error, and the absence of a live performance history.

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Who should consider investing in this ETF?

Investors with a moderate-to-high risk appetite, a 5–7 year investment horizon, and a preference for passive investing with balanced exposure to equity and debt should consider this ETF.

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efore making your investment decision.