Upcoming NFO: Mirae Asset Mutual Fund Files Draft with SEBI for Multi Factor Equity Fund

Mirae Asset Mutual Fund has submitted the draft Scheme Information Document for the Mirae Asset Multi Factor Fund, an open-ended equity scheme based on a multi-factor investment approach.  

The scheme is categorised under equity sectoral or thematic funds and aims to generate long-term capital appreciation through investments in equity and equity-related instruments.  

Units will be offered at ₹10 each during the New Fund Offer (NFO). After the offer period, the scheme will reopen for ongoing subscriptions and redemptions at net asset value-linked prices. The units are not proposed to be listed on stock exchanges, and redemption proceeds are to be dispatched within three working days.  

Asset Allocation 

Under normal conditions, the scheme will invest 80–100% of its assets in equities aligned with the multi-factor theme.  

Up to 20% may be allocated to other equities, while debt and money-market instruments may also account for as much as 20% of the portfolio. Exposure to InvIT units is capped at 10%.  

The scheme may use derivatives for up to 50% of its equity exposure, subject to limits on non-hedging positions. Securities lending is permitted up to 20% of net assets, with a cap of 5% per intermediary.  

Investment Strategy and Benchmark 

The fund will follow an active approach built on a systematic multi-factor framework. The model considers fundamental indicators such as valuation, earnings growth, profitability and balance-sheet strength, along with technical factors including momentum, volatility and trend behaviour.  

The portfolio will be rebalanced periodically, with limits on sector and stock-level exposure. Performance will be measured against the BSE 200 Total Return Index, which represents the broad market universe targeted by the scheme.  

Plans, Expenses and Exit Load 

The scheme will offer Regular and Direct plans, each with Growth and IDCW options. The minimum application amount is ₹5,000, while systematic investment plans can begin from ₹99.  

The total expense ratio is estimated at up to 2.25% of daily net assets. An exit load of 1% will apply if units are redeemed within 1 year from allotment, with no load after that period.  

Read More: NFO Alert: DSP Mutual Fund Introduces Multi Asset Omni Fund of Funds with Dynamic Allocation! 

Conclusion 

The draft document sets out a diversified equity strategy built around multiple investment factors, with most assets directed towards equities. The scheme is new and does not have a performance record. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.   
 
Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.