Mirae Asset Mutual Fund launches Hang Seng Tech ETF

Mirae Asset Mutual Fund has launched the ‘Mirae Asset Hang Seng TECH ETF’, an open-ended scheme replicating/tracking Hang Seng TECH Total Return Index and the ‘Mirae Asset Hang Seng TECH ETF Fund of Funds’, an open-ended fund of fund scheme predominantly investing in units of Mirae Asset Hang Seng TECH ETF.

The NFO for both the funds will open for subscription on November 17. While the Mirae Asset Hang Seng TECH ETF will close on November 29, the Mirae Asset Hang Seng TECH ETF Fund of Fund will close on December 1. The minimum initial investment in both the schemes will be Rs 5,000 and multiples of Re 1 thereafter.

The Mirae Asset Hang Seng TECH ETF will be managed by Siddharth Srivastava and the Mirae Asset Hang Seng TECH ETF Fund of Fund will be managed by Ekta Gala. The Mirae Asset Hang Seng TECH ETF Fund of Fund will also offer investors the options for a Regular Plan and Direct Plan with Growth Option.

The ETF provides exposure to 30 largest Tech-centric Chinese companies listed on Hong Kong Stock Exchange. According to the press release, the portfolio aims to provide exposure to multiple tech themes including cloud, AI, IOT etc. Hang Seng TECH Index has outperformed Nifty50 Index in 5 out of 7 calendar years with significant outperformance in 2019 and 2020 but underperformance in 2018 and 2021 YTD. With recent corrections, the China market may provide an attractive investment opportunity at lower valuations. Hang Seng TECH Index is currently trading at a 38% discount to its historical average.

“This is the Asian century with China being one of the dominant economies , with a focus on achieving major breakthroughs in core technologies such as AI, semiconductors, cloud computing, and other key areas for its future growth. The recent correction in Hang Seng TECH Index may provide Indian investors an attractive opportunity to diversify and get exposure in the growing digital economy of China,” said Swarup Mohanty, Director & CEO, Mirae Asset Investment Managers (India).

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