Paytm announced that, in collaboration with Mirae Asset's NYSE FANG+ ETF, its wholly-owned subsidiary 'Paytm Money' will provide Indian retail investors with access to top tech stocks from the United States.
The scheme's investment goal is to achieve returns that are comparable to the NYSE FANG+ Total Return Index before expenditures, subject to monitoring error and currency fluctuations. The Scheme does not promise or guarantee any specific returns.
The NYSE FANG+ Index is a market capitalization-weighted index that represents a subset of the technology and consumer discretionary sectors made up of actively traded growth stocks.
In addition to the NYSE FANG+ ETF, Mirae Asset is launching a mutual fund scheme (NYSE FANG+ ETF Fund of Fund) that will invest primarily in NYSE FANG+ ETF.
The Mirae Asset NYSE FANG+ ETF will be controlled passively, with investments in stocks that are weighted as closely as possible to the NYSE FANG+ Index's weights.
ETFs have a 0.33 percent expense ratio, Direct Mutual Funds have a 0.50 percent expense ratio, and Regular Mutual Funds have a 1% expense ratio. In all three categories listed above, the minimum investment through NFO has been held at $5,000.
Alibaba, Facebook, Alphabet, Apple, Baidu, Nvidia, Amazon, Netflix, Twitter, and Tesla are among the ten stocks that make up the NYSE FANG+ Index.
On April 19, 2021, the NFOs for both funds will open for subscription. The FANG+ETF Fund of Fund will close on May 3, 2021, while the FANG+ETF will close on April 30, 2021.
For quite some time, ETFs have been quite common in the US markets, and we are now seeing ETFs gain acceptance in India as well, with ETFs accounting for 27% of Paytm Money's transactions.
Returns that are comparable to the NYSE FANG+ Total Return Index's results. due to monitoring errors and fluctuating foreign exchange rates.