MIRAE ASSET NIFTY NEXT 50 ETF
Mirae Asset Investment Managers MIRAE ASSET NIFTY NEXT 50 ETF (An open ended scheme replicating/tracking Nifty Next 50 Index) NIFTY Next 50: Profile
Parameter NIFTY 50 NIFTY Next 50 NIFTY Midcap 150 Segment Large Cap Mid Cap Companies ranked from 101 Criteria Top 50 stocks by M-Cap Remaining 50 Stocks to 250 based on full MCap Constituents 50 50 150 Avg. MCap 1,84,085 46,234 15,498 Avg. MCap (Top 25) 2,99,812 54,824 22,544 Avg. MCap (Next 25) 68,357 37,643 18,164 Reliance (13.24) Adani Green (4.41) Apollo Hospital (2.18) HDFC Bank (10.25) Avenue Supermart (4.39) PI Industries (1.89) Top 5 Stocks Infosys (7.74) Tata Consumer (3.89) Zee Entertainment (1.84) (% Weight) HDFC (6.87) Dabur India(3.81) Jubilant Foodworks (1.78) ICICI General Insurance (3 TCS (5.58) Voltas (1.75) .55)
NIFTY Next 50 portfolio aims to captures the essence of large caps and midcaps
Source: NSE, Oct 30, 2020. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same.
2 Mirae Asset Mutual Fund NIFTY Next 50: Sector distribution
36%
29%
OTHER FINANCIAL 5.4% SERVICES 19% 17% 15% 14% 6.8% 12% NBFC 10% 2.4% 6% 6% 7% 4% 5% 6% 4% 3% 2.4% 2% 2% 3% INSURANCE
1% 1.5%
PHARMA
IT
Others
AUTOMOBILE
CONSUMER CONSUMER GOODS
FINANCIAL FINANCIAL SERVICES
SERVICES POWER
CEMENTCEMENT & OIL OIL & GAS
HOUSING PRODUCTS
FINANCE 6.9%
FINANCIAL 1.3%
INSTITUTION
3.2% NIFTY 50 NIFTY Next 50 BANKS 24.7%
0.0% 10.0% 20.0% 30.0% NIFTY Next 50 portfolio is more diversified as compared to NIFTY 50
Source: NSE, as on Oct 30, 2020. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same.
3 Mirae Asset Mutual Fund NIFTY Next 50: Stock distribution
Weight Distribution Top Stocks by weight Top 15 stocks in NIFTY Next 50 2% Median ADANI GREEN 4.41% 1% DMART 4.39% TATA CONSUMER 3.89% 8% Bottom 10 stocks DABUR 3.81% 2% ICICI GENERAL INSURANCE 3.55% NAUKRI 3.55% 59% Top 20 stocks 79% GODREJ CONSUMER 3.31% PIDILITIE INDUSTRIES 3.15% 36% LUPIN 2.88% Top 10 stocks 63% AURO PHARMA 2.86% COLGATE 2.66%
20% BANDHAN BANK 2.58% Top 5 stocks 44% AMBUJA CEMENT 2.51% MARICO 2.43% NIFTY Next 50 NIFTY 50 HAVELLS 2.40%
NIFTY Next 50 portfolio is more diversified as compared to NIFTY 50
Source: NSE, as on Oct 30, 2020. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same.
4 Mirae Asset Mutual Fund WHY NIFTY NEXT 50? NIFTY Next 50: Aims to capture potential blue chips of tomorrow
Stocks that moved from NIFTY Next 50 to NIFTY 50 in last 10 years (Oct’20)
S. No Name S. No Name 1 ADANI PORTS AND SPECIAL ECONOMIC ZONE 14 JSW STEEL 2 ASIAN PAINTS 15 KOTAK MAHINDRA BANK 3 BAJAJ AUTO 16 SHREE CEMENT 4 BAJAJ FINANCE 17 TECH MAHINDRA 5 BAJAJ FINSERV 18 TITAN COMPANY 6 BHARTI INFRATEL 19 ULTRATECH CEMENT 7 BRITANNIA INDUSTRIES 20 UPL 8 COAL INDIA 21 VEDANTA 9 DR. REDDY'S LABORATORIES 22 ZEE ENTERTAINMENT ENTERPRISES 10 EICHER MOTORS 23 SHREE CEMENTS LIMITED 11 GRASIM INDUSTRIES 24 HDFC LIFE INSURANCE COMPANY LIMITED 12 INDIAN OIL CORPORATION 25 DIVI’S LABORATORIES LIMITED 13 INDUSIND BANK 26 SBI LIFE INSURANCE LIMITED
NIFTY Next 50 portfolio aims to captures the potential blue chips of tomorrow, today !
Source: NSE, as on Oct 30, 2020. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same.
6 Mirae Asset Mutual Fund NIFTY Next 50: Get active flavor in passive
93% Stock journey From NIFTY Next 50 to NIFTY 50 (CAGR Returns)
57% 45% 46% 36% 41% 27% 24% 25% 22% 25% 14%
Asian Paints Bajaj Finance Bajaj Finserv IndusInd Bank Kotak Mahindra Bank Titan (9yrs/8yrs) (1yr/2yrs) (5yrs/2yrs) (2yrs/7yrs) (7yrs/10yrs) (7yrs/2yrs)
Returns with NIFTY Next 50 By design, NIFTY Next 50 may capture the upside of potential blue-chips of tomorrow, before probable move to NIFTY 50
In last 10 years, 99 stocks have been replaced in NIFTY Next 50 Index, resulting in a turnover of almost 20% of stocks. A passive index usually have a rule based stock churn resulting in portfolio turnover like active mutual funds NIFTY Next 50 portfolio aims to captures the potential blue chips of tomorrow, today !
Source: NSE. CAGR Returns Past performance may or may not sustain in future. Returns data considered till Dec 2019, to remove the biasness of recent correction in NIFTY 50 figures. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same.
7 Mirae Asset Mutual Fund NIFTY Next 50: Provides an alternate exposure in large cap segm ent Industry based exposure (Top 15 sectors) Average of all Large Cap Fund Sector s NIFTY 50 ETF NIFTY Next 50 ETF Consumer Non Durables 7.63 10.57 22.63 Pharmaceuticals 6.45 3.74 15.50 Finance 9.24 10.79 12.16 Software 13.83 17.13 6.10 Power 2.53 1.72 5.44 Retailing 1.44 - 4.39 Cement 2.93 2.24 4.35 Gas 0.46 0.31 4.13 Banks 23.49 24.67 3.70 Chemicals 0.50 - 3.15 Transportation 0.63 0.52 3.07 Auto Ancillaries 0.78 - 2.98 Consumer Durables 1.25 0.97 2.40 Telecom - Equipment & Accessories 0.06 - 2.08 Petroleum Products 9.06 14.18 1.84 NIFTY Next 50 portfolio provides different stock and sector exposure in large cap space
Source: ACE MF. Industry based exposure data is as on as on Oct 30, 2020. The sector(s)/stock(s)/issuer(s) mentioned in this presentation do not constitute any research report/recommendation of the same.
8 Mirae Asset Mutual Fund NIFTY Next 50: Return and risk profile
Returns Return to Risk Ratio Period NIFTY 50 NIFTY NEXT 50 NIFTY Midcap 100 NIFTY 50 NIFTY NEXT 50 NIFTY Midcap 100
3 Months 5.5% 2.0% 10.5% 0.11 0.53 0.34
6 Months 18.9% 13.9% 26.9% 0.79 1.34 0.95
1 Year 14.8% 5.1% 1.2% 0.19 0.04 0.48
3 Years 5.4% -1.6% -3.6% (0.08) (0.16) 0.26
5 Years 9.0% 8.2% 6.3% 0.44 0.32 0.50
7 Years 10.5% 13.6% 13.6% 0.74 0.71 0.61
10 Years 8.1% 9.0% 7.5% 0.49 0.40 0.46
NIFTY Next 50 has given better returns than NIFTY 50 and NIFTY Midcap Index along with comparable return to risk ratio v/s NIFTY 50 over longer horizons
Source: NSE, as on Oct 30, 2020. Returns of period more than 1 year are CAGR returns. Past performance may or may not sustain in future. The above is performance of the Index and does not in any manner indicate the performance of any individual scheme of Mutual Fund.
9 Mirae Asset Mutual Fund NIFTY Next 50: Calendar year returns
58%
49% 50% 48% 46% 41% 33% 30% 29% 20% 19% 19% 13% 8% 8% 8% 8% 8% 5% 4% 6% 1% 2%
-3% -3% -3% -3% -4% -8% -15% -24%
-30% -31%
2020 YTD 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
NIFTY Midcap 100 - TRI NIFTY 50 - TRI NIFTY NEXT 50 - TRI
• Since 2010, NIFTY Next 50 has outperformed NIFTY 50 and NIFTY Midcap 100 in 6 Calendar years respectively. • Year subsequent to the period in which all three indices have given negative return, Nifty Next 50 has recovered the highest. (e.g. : 2012 followed by 2011 ) Source: NSE, as on Oct 30, 2020. Returns of period more than 1 year are CAGR returns. Past performance may or may not sustain in future. The above is performance of the Index and does not in any manner indicate the performance of any individual scheme of Mutual Fund.
10 Mirae Asset Mutual Fund NIFTY Next 50: Rolling returns
Average Rolling Returns 3 years investment horizon 1 year investment horizon NIFTY Midcap 1 Period NIFTY 50 NIFTY NEXT 50 NIFTY 50 NIFTY NEXT 50 NIFTY Midcap 100 00
14 years 13.8% 16.1% 15.4% 13.4% 18.4% 16.2%
10 years 10.8% 14.8% 12.9% 9.9% 12.4% 10.6%
7 years 11.8% 16.0% 14.3% 11.9% 15.9% 14.9%
5 years 10.8% 15.0% 13.9% 7.7% 9.0% 6.5%
3 years 10.2% 10.3% 7.7% 8.3% 3.5% -1.0%
1 Year 7.3% 2.5% -1.5% -2.2% -3.6% -10.4%
1 year & 3 year average rolling returns of NIFTY Next 50 is consistently better than NIFTY Midcap 100 & is also better than NIFTY 50 in longer horizon
Source: NSE, as on Oct 30, 2020. Past performance may or may not sustain in future. 3 year rolling return in five year period provides the return which investor has realized in last 5 years (daily average), with investment horizon/period of 3 years. The above is performance of the Index and does not in any manner indicate the performance of any individual scheme of Mutual Fund
11 Mirae Asset Mutual Fund NIFTY Next 50: Drawdown profile in last 10 years
Oct-2010 Oct-2011 Oct-2012 Oct-2013 Oct-2014 Oct-2015 Oct-2016 Oct-2017 Oct-2018 Oct-2019 Oct-2020 0.0%
-5.0%
-10.0%
-15.0%
-20.0%
-25.0%
-30.0%
-35.0%
-40.0%
-45.0%
-50.0% NIFTY Midcap 100 - TRI NIFTY 50 - TRI NIFTY NEXT 50 - TRI
NIFTY Next 50 is more volatile than NIFTY 50 but had better drawdowns performance than Midcap in last 10 year. Source: ACE MF, as on Oct 30, 2020. Drawdown is the % decline from the last all time high on the concerned index. Past performance may or may not sustain in future. The above is performance of the Index and does not in any manner indicate the performance of any individual scheme of Mutual Fund
12 Mirae Asset Mutual Fund Mirae Asset NIFTY Next 50 ETF
. Listing: NSE & BSE . Transaction Options: . Through Stock Exchange: In multiple of 1 unit, around real time NAV price (NAV : 271.681 as on Oct 30, 2020) . Through AMC: In multiples of 10,000 units , around real time NAV price Returns: Expense Ratio: Price & Div. Reinvestment returns similar 14 bps* to NIFTY Next 50 TR Index (Benchmark) subject to tracking error
ETF Units: Authorized Participants: Creation Unit Size = 10,000 units Mirae Asset Capital Markets (India) (Approx. 27,16,810 INR*)
Listing: Others: NSE (MANXT50) & BSE (542922 ) iNAV available on Website
Source: ACE MF, as on Oct 30, 2020. * Effective from Feb 12, 2020
13 Mirae Asset Mutual Fund Summary: Why Mirae Asset NIFTY Next 50 ETF
NIFTY Next 50 blends the flavor of large cap and midcap segment
Historical Performance of Nifty Next 50 Index/ETF
Has provided higher returns than NIFTY 50 and NIFTY Midcap 100 in longer horizon
Higher volatility and draw down than NIFTY 50 but lower than NIFTY Midcap 100
Comparable Return to Risk Profile with NIFTY 50 in longer horizon
Has outperformed 72% & 92% of Large cap MF’s in previous 5 & 7 years horizon respectively by an
average margin of 70bps or more.
Portfolio
More diversified than NIFTY 50 at both stock and sector level
Provides different stock & sector level exposure compared to Large cap MFs and NIFTY 50 ETF
NIFTY Next 50 aims to provides the stability of large cap with return potential of midcap
Source: ACE MF and NSE Oct 30, 2020. Past performance may or may not sustain in future. * Effective from Feb 12, 2020. The above is performance of the Index and does not in any manner indicate the performance of any individual scheme of Mutual Fund
14 Mirae Asset Mutual Fund THANK YOU ANNEXURE How to trade in an ETF ?
Transact on Exchange Transact directly with AMC
Investors Large Investors (Buy/Sell just like stocks in (Buy /Sell in multiple of any quantity) creation unit size)
Cash ETF Units
Stock Exchange Cash/stock for (Quotes by other investors transaction in Multiple Multiple of ETF and market maker) of ETF creation unit creation units* size*
Also a buyer and Ensures trading seller of ETF Units around real time NAV Mutual Fund Market Maker* (Creates ETF basket/units (Authorized Participants) to mirror an Index) * Authorized participants are assigned by the AMC to provide continuous liquidity on the exchange around real time NAV. They provide both buy and sell quotes like Banks in forex *Creation unit is the minimum portfolio size which the ETF deploy in the market. stocks of underlying index to create a replicable portfolio.
17 Mirae Asset Mutual Fund ETF: Two investment ideas brought together
Stock Mutual Fund Tradable during day
ETF Fund that trades like a stock
Exchange Traded Fund (ETF) aims to generate total returns of the underlying index like NIFTY 50 by investing in the index portfolio
18 Mirae Asset Mutual Fund ETF v/s Other Mutual Funds
Portfolio Low Cost Diversification
Trades on Exchange
Professional Management Similarities Difference
Replicates the Benchmark (Beta instead of Alpha) Can be broad, strategy, Daily sector or Portfolio theme based Transparency
19 Mirae Asset Mutual Fund Advantages of ETF
Low Cost: Lower expense ratio (Avg. of Large cap ETFs: 0.15 %) than equity MFs (Avg. of Large Cap MFs: 2.2%) No Exit Load
Performance: NIFTY Next 50 ETFs have outperformed 92% of large cap mutual funds in previous 7 year period*
Liquidity: Trades on exchange like stocks throughout the day Priced close to Live NAV, hence can be brought and sold intra day at real time NAV
Transparency: Portfolio is disclosed on a daily basis Aim to replicate the return of the underlying Index
Reduces Non Market risk: Reduces the unsystematic risk / Non Market risk
Data as on Oct 30, 2020. Source: ACE MF. *Large Cap Mutual funds based on the SEBI circular on categorization and rationalization of Mutual Fund Scheme. Past performance may or may not sustain in future.
20 Mirae Asset Mutual Fund ETF Performance v/s MF performance
Excess return of ETFs over average returns of M % of Large Cap MF schemes outperformed by ETF F's ETF Type 1 year 3 years 5 Years 7 years 10 years 1 year 3 years 5 Years 7 years 10 years
NIFTY 50 63% 92% 88% 40% 50% 1.6 2.8 1.8 -0.4 -0.3
NIFTY Next 50 26% 4% 72% 92% 60% -1.3 -4.1 0.7 2.2 0.3
• NIFTY 50 ETFs have outperformed 92% and 88% of large cap mutual funds in 3 year and 5 year respectively.
• For investment horizon of 5 years or more, NIFTY Next 50 ETFs have outperformed at least 60% of large-cap mutual fund.
• The average margin of outperformance by Nifty50 ETFs over 3 Yr. stood at 280bps.
Large Cap funds are finding increasingly difficult to outperform Large cap ETFs
Source: ACE MF, as on Oct 30, 2020. * Based on 28 Large cap, funds (Regular: Growth). *Large Cap Mutual funds based on the SEBI circular on categoriz ation and rationalization of Mutual Fund Scheme. Large cap funds are defined as minimum investment in equity & equity related instruments of large cap companies-80% of total assets Past performance may or may not sustain in future. The above is performance of the category and does not in any mann er indicate the performance of any individual scheme of Mutual Fund.
21 Mirae Asset Mutual Fund ETF Market Growth
ETF AUM (in Cr.) % of ETF AUM to Equity MF AUM 224,247 29%
164,660 24%
94,524 14% 65,527 10% 7% 28,239 4% 4% 8,842 10,596 14,523
Oct Oct Oct Oct Oct Oct Oct Oct Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Oct-20 2013 2014 2015 2016 2017 2018 2019 2020
In last three year Indian ETF has clocked a CAGR of 51% per annum
Primarily drivers: EPFO investments in NIFTY 50 & Sensex ETFs Disinvestment via ETFs by government. Issuance of CPSE Bond via Issuer Driven ETF Low cost and outperformance of Large Cap ETFs over Mutual funds
Source: ACE MF and AMFI , as on Oct 30, 2020.
22 Mirae Asset Mutual Fund ExchangeMirae Asset Traded Global Funds ETF Footprint
18th ~37.8bn ~370 Global ETF AUM Total ETF AUM ETF Globally Ranking
Horizons Canada Global X (Japan) TIGER (Korea) • AUM: US$ 9.5B Global X (USA)
• AUM: US$ 8.9B • 91 ETFs • AUM: US$ 10.9B
• 72 ETFs • 124 ETFs Horizons Hong Kong
• AUM: US$ 627M
Global X (Colombia) • 14 ETFs
• AUM: US$ 307M Mirae Asset Brazil • 1 ETF
• AUM: US$ 30M • 1 ETF
Mirae Asset India BetaShares (Australia) • AUM: US$ 23M • AUM: US$ 7.5B • 2 ETFs • 65 ETFs *as on May 31, 2020. Ranking data is as on Oct,2019
2323 | Mirae Asset Mutual Fund Source: ACE MF and AMFI , as on Oct 30, 2020.
24 Mirae Asset Mutual Fund Disclaimers
DISCLAIMER OF NSE: As required, a copy of this Scheme Information Document has been submitted to National Stock Exchange of India Limited (hereinafter referred to as NSE). NSE has given vide its letter NSE/LIST/57869 dated August 21, 2018 permission to the Mutual Fund to use the Exchange’s name in this Scheme Information Document as one of the stock exchanges on which the Mutual Fund’s Units are proposed to be listed subject to, the Mutual Fund fulfilling the various criteria for listing. The Exchange has scrutinized this Scheme Information Document for its limited internal purpose of deciding on the matter of granting the aforesaid permission to the Mutual Fund. It is to be distinctly understood that the aforesaid permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE; nor does it in any manner warrant, certify or endorse the correctness or completeness of any of the contents of this Scheme Information Document; nor does it warrant that the Mutual Fund’s Units will be listed or will continue to be listed on the Exchange; nor does it take any responsibility for the financial or other soundness of the Mutual Fund, its Sponsors, its management or any scheme of the Mutual Fund. Every person who desires to apply for or otherwise acquire any Units of the Mutual Fund may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription /acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever.
DISCLAIMER OF BSE: “BSE Ltd. (“the Exchange”) has given vide its letter DCS/IPO/LK/MF/IP/801 2018-19 dated August 21, 2018 permission to to use the Exchange’s name in this SID as one of the Stock Exchanges on which this Mutual Fund’s Units are proposed to be listed. The Exchange has scrutinized this SID for its limited internal purpose of deciding on the matter of granting the aforesaid permission to. The Exchange does not in any manner:- i) warrant, certify or endorse the correctness or completeness of any of the contents of this SID; or ii) warrant that this scheme’s units will be listed or will continue to be listed on the Exchange; or iii) take any responsibility for the financial or other soundness of this Mutual Fund, its promoters, its management or any scheme or project of this Mutual Fund; and it should not for any reason be deemed or construed that this SID has been cleared or approved by the Exchange. Every person who desires to apply for or otherwise acquires any unit of of this Mutual Fund may do so pursuant to independent inquiry, investigation and analysis and shall not have any claim against the Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in connection with such subscription/ acquisition whether by reason of anything stated or omitted to be stated herein or any other reason whatsoever.
Statutory Details: Trustee: Mirae Asset Trustee Company Private Limited; Investment Manager: Mirae Asset Investment Managers (India) Private Limited (AMC); Sponsor: Mirae Asset Global Investments Company Limited.
The information contained in this document is compiled from third party and publically available sources and is included for general information purposes only. There can be no assurance and guarantee on the yields. Investments in the sectors may or may not remain the same. Views expressed by the Fund Manager cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. Whilst Mirae Asset Investment Managers (India) Private Limited (the AMC) shall have no responsibility/liability whatsoever for the accuracy or any use or reliance thereof of such information. The AMC, its associate or sponsors or group companies, its Directors or employees accepts no liability for any loss or damage of any kind resulting out of the use of this document. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice and shall alone be fully responsible / liable for any decision taken on the basis of information contained herein. Any reliance on the accuracy or use of such information shall be done only after consultation to the financial consultant to understand the specific legal, tax or financial implications.
There is no guarantee or assurance of returns/income generation/capital protection in any scheme of the Fund.
For further information about other schemes (product labelling and performance of the fund) please visit the website of the AMC: www.miraeassetmf.co.in Mutual fund investments are subject to market risks, read all scheme related documents carefully. 25 Mirae Asset Mutual Fund THANK YOU