Mirae Asset Nifty 200 Alpha 30 ETF · NSE:ALPHAETF
Mirae Asset Nifty 200 Alpha 30 ETF — Mirae Asset Mutual Fund — Investor Presentation (July 2021)
32 slides from Mirae Asset Nifty 200 Alpha 30 ETF's investor presentation, July 2021
Slide 1: Mirae Asset Nifty 50 ETF
MIRAE ASSET NIFTY 50 ETF (An open ended scheme replicating/tracking Nifty 50 Index)
Slide 2: Our Global ETF Presence
Our Global ETF Presence 10 325 $59bn Country | ETFs | AUM Canada Global ETF AUM Growth US Japan (USD bn.) South Korea 54bn Colombia India 39bn 29bn 20bn Brazil 2017 2018 2019 2020 Our Global ETF brands Mirae Asset offers diversified ETF globally as one of the largest ETF provider As on March 2021 So
Slide 3: ETF Market Growth
ETF Market Growth ETF AUM (in Cr) 3,30,746 ETF/ Equity AUM 2,90,053 29% 30% 24% 1,54,338 1,39,550 14% 10% 78,212 7% 50,215 4% 4% 11,403 12,838 20,699 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Jul-21 Dec'14 Dec'15 Dec'16 Dec'17 Dec'18 Dec'19 Dec'20 July'21 ❑ In last five years Indian ET
Slide 4: Drive towards Passive: Shrinking alpha in large-cap funds
Drive towards Passive: Shrinking alpha in large-cap funds CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Average Alpha(%) -5.0 15.2 38.9 12.4 5.6 -2.3 1.1 -0.2 0.9 -0.4 6.6 CY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Average Alpha(%) 1.5 -0.9 -2.1 8.3 3.9 -1.1 0.3 -6.6 -1.7 -2.2 -0.1
Slide 5: ETF v/s MF Performance
ETF v/s MF Performance % of Large Cap MF schemes outperformed by ETF Excess return of ETFs over average returns of MF ETF Type 1 year 3 years 5 Years 7 years 10 years 1 year 3 years 5 Years 7 years 10 years NIFTY 50 52% 77% 88% 44% 55% -0.5 0.8 1.7 -0.2 -0.3 NIFTY Next 50 74% 23% 80% 96% 86% 4.3 -1.
Slide 6: Alpha in top quartile large-cap funds have reduced
Alpha in top quartile large-cap funds have reduced CY 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Average Alpha(%) 0.4 19.1 54.4 14.9 13.5 3.6 6.9 3.0 11.6 0.1 12.8 CY 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Average Alpha(%) 4.4 1.1 0.7 12.2 6.2 0.7 3.3 -5.0 0.8 0.3 2.5 Alpha: Averag
Slide 7: Mirae Asset ETF Advantages
Mirae Asset ETF Advantages Continuous liquidity Low spread on exchange Lower effective spread after considering Provided by Authorized Participant (AP) on Securities Transaction Tax (STT) and brokerage. exchange at all times around latest real For large order, the AP can quote at negotiate time NAV
Slide 8: Advantages of market maker in Mirae ETF
Advantages of market maker in Mirae ETF Lower Bid-Ask Spread Continuous No additional ALGO driven spread by market Quotation maker Large orders can be executed Lower Impact easily at a single price without Cost additional spread 7 Mirae Asset Mutual Fund
Slide 9: MAN50ETF trades closer to NAV on exchange
MAN50ETF trades closer to NAV on exchange (Discount)/Premium to NAV as on 16th March 2020 (Discount)/Premium as on 31st Dec 2020 A 10.66% A -0.06% B 14.72% B -0.08% C 4.98% C -0.14% D 3.51% D -0.12% E 1.32% E -0.13% F 16.51% F -4.19% G 21.69% G -0.75% Mirae Asset Nifty 50 ETF 0.73% Mirae Asset Nifty
Slide 10: Focus to ensure correct pricing and liquidity on Exchange
Focus to ensure correct pricing and liquidity on Exchange NIFTY 50 Change v/s ETF Price movement on exchange (Close price on NSE over opening NAV) 09-Mar 12-Mar 13-Mar 16-Mar 17-Mar 18-Mar 19-Mar 20-Mar 23-Mar 24-Mar 25-Mar 26-Mar 30-Mar 31-Mar Correlation NIFTY 50 -4.90% -8.30% 3.81% -7.61% -2.50%
Slide 11: Real time NAV on Mirae Asset Website
Real time NAV on Mirae Asset Website The above mentioned figures are for illustration purpose only 10 Mirae Asset Mutual Fund
Slide 12: Mirae Asset Nifty 50 ETF
Mirae Asset NIFTY 50 ETF ▪ NIFTY 50 ETFs captures around 44% of the AUM in the ETF market. ▪ MAN50 ETF has low spread on the exchange and usually has low tracking error. ▪ Real time market making by Authorized Participants (AP’s) Benchmark: Expense Ratio: NIFTY 50 TRI 8 bps Authorized Participants:
Slide 13: Index Tracking & Trade Statistics
Mirae Asset NIFTY 50 ETF – Index Tracking & Trade Statistics Particular 3 Month 6 Month 12 Month Since Jan 2019 Mirae Asset Nifty 50 ETF 8.35% 16.54% 44.12% 16.81% Nifty 50 Total Return Index 8.38% 16.58% 44.16% 16.99% Tracking Difference -0.02% -0.05% -0.04% -0.16% Average Tracking Difference of al
Slide 14: About NIFTY 50
About NIFTY 50
Slide 15: NIFTY Index: Profile
NIFTY 50 Index : Profile Portfolio of 50 blue chip companies Represents over Exposure in 65% of the large cap space market by Free Float M-Cap NIFTY 50 Total return of Rebalanced 11.2% in last 15 every 6 month years History of wealth creation over 20 years Source: NSE and ACE MF, as on April 30, 202
Slide 16: NIFTY 50 Index: Stock & Sector distribution
NIFTY 50 Index : Stock & Sector distribution Top 15 Stocks by weight Weightage (%) 37% Reliance Industries Ltd. 9.63 HDFC Bank Ltd. 9.11 Infosys Ltd. 8.74 ICICI Bank Ltd. 6.92 18% HDFC Ltd. 6.44 11% 11% Tata Consultancy Services Ltd. 4.80 5% 4% 4% Kotak Mahindra Bank Ltd. 3.55 3% 3% 2% 2% 1% Hindust
Slide 17: NIFTY 50 Index: Returns
NIFTY 50 Index : Returns CY TRI Returns 33% 30% 2011 -23.8% 29% 2012 29.4% 16% 2013 8.1% 13% 14% 8% 2014 32.9% 4% 5% 2015 -3.0% 2016 4.4% -3% 2017 30.3% 2018 4.6% 2019 13.5% -24% 2020 16.1% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD 2021 YTD 2021 13.7% The bear market of 2011 was followed
Slide 18: NIFTY 50 Index: Large cap exposure at lower cost
NIFTY 50 Index : Large cap exposure at lower cost Industry based exposure (Top 14 sectors) Sector Avg. of all large cap funds NIFTY 50 ETF Bank 26.18 26.50 IT 14.13 16.11 Crude Oil 7.42 12.00 Finance 7.52 10.05 FMCG 5.80 8.01 Automobile & Ancillaries 5.23 5.32 Healthcare 6.26 3.53 Chemicals 2.33 2.6
Slide 19: Recovery across the segment
Recovery across the segment M-Cap Segment Movement 2000 1800 1600 1400 1200 1000 800 600 400 200 0 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 NIFTY 50 - TRI Midcap 150 TRI Nifty Smallcap 250 - TRI • Since the bottom of market on March 23, 2020, markets have recovered across broad
Slide 20: NIFTY 50 Index: Rolling returns
NIFTY 50 Index : Rolling returns Average Rolling Returns Period 1 Year Investment Horizon 3 Year Investment Horizon 14 Years 13.4% 12.6% 10 Years 11.8% 11.3% 7 Years 14.2% 12.4% 5 Years 14.4% 11.0% 3 Years 12.8% 11.1% 1 Year 30.5% 11.0% NIFTY 50 has given average rolling returns of ~13 % with invest
Slide 21: How to trade in an ETF?
How to trade in an ETF ? Transact on Exchange Transact directly with AMC Investors Large Investors (Buy/Sell just like stocks in any (Buy /Sell in multiple of quantity) creation unit size) Cash ETF Units Stock Exchange (Quotes by Cash/stock for other investors and market transaction in Multiple Mult
Slide 22: Ways to Transact
Ways to Transact Client Subscription/ Redemption Features • Trades like a stock • Can trade as less as 1 Units Through Stock Exchange • Unit credit on T+2 Wants to trade in any no. of units via broker • Transaction on Exchange traded price • Quotations provided by AP around iNAV • No paper work • Ca
Slide 23: Summary: Why Mirae Asset Nifty 50 ETF
Summary: Why Mirae Asset NIFTY 50 ETF NIFTY 50 ETF aims to capture the performance of top 50 blue chips companies listed on NSE ❑ Historical Performance ➢ On an average, NIFTY 50 TRI gave rolling return of 11.0% in last 5 years, for an investment horizon of 3 years. ❑ Low Cost ❑ Expense ratio of jus
Slide 24: Thank You
THANK YOU J MIRAE ASSET Mutual Fund
Slide 25: Annexure
ANNEXURE
Slide 26: Annexure: ETF Identifiers and Authorized Participants
Annexure ETF Identifiers Value Authorized Participants Address NSE Symbol MAN50ETF Edelweiss Securities Limited Edelweiss House, Off C.S.T. Road, BSE Code 542131 Edelweiss Securities Limited Kalina, Mumbai - 400098. ISIN INF769K01EG9 Bloomberg Code MAN50ETF IN Equity 10/1D, Lal Bazaar Street, 3rd Fl
Slide 27: ETF: Two investment ideas brought together
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 26 Mirae Asset Mutual Fund
Slide 28: ETF v/s Other Mutual Funds
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 27 Mirae Asset Mutual Fund
Slide 29: Portfolio Management with ETF
Portfolio Management with ETF ETF as a Core Strategy ETF as a Satellite Strategy Active Strategy ETF 1 1 Active Active Active Strategy 1 ETF Strategy 1 ETF 4 Strategy ETF 2 Active Strategy ETF 3 1 • Predominantly active exposure is used to generate • Beta exposure via ETF at low cost potential retur
Slide 30: Product Labelling
Product Labelling . . . . . Riskometer Mirae Asset NIFTY 50 ETF is suitable for investors who are seeking* + Returns that are commensurate with the performance of the NIFTY 50 Index, subject to tracking errors over long term + Investment in equity securities covered by the NIFTY 50 Index = Investors
Slide 31: Disclaimers
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
Slide 32: Thank You
THANK YOU J MIRAE ASSET Mutual Fund
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