Mirae Asset Files Draft SID for BSE 500 Dividend Leaders 50 ETF; Units to be Offered at 1/100th of Index Value

Mumbai, July 15, 2025 – Mirae Asset Mutual Fund has filed the Draft Scheme Information Document (SID) with SEBI for a new passive offering, the Mirae Asset BSE 500 Dividend Leaders 50 ETF, an open-ended scheme that seeks to replicate or track the BSE 500 Dividend Leaders 50 Total Return Index.

Scheme Overview

Asset Allocation & Investment Strategy

The scheme will adopt a passive investment strategy. It will invest 95% to 100% of its assets in securities that are part of the BSE 500 Dividend Leaders 50 Index.

Up to 5% of the assets may be allocated to money market instruments, including:

• TREPS (Tri-party Repo)
• Units of liquid or debt mutual fund schemes.

Key Restrictions:

• No exposure to overseas securities, REITs, InvITs, AT1/AT2 bonds, structured obligations, or unrated debt instruments.
• No short selling or credit default swaps.
• Exposure to equity derivatives capped at 20% of net assets, strictly for tracking efficiency.

Index Composition & Rebalancing

The BSE 500 Dividend Leaders 50 Index selects 50 companies from the BSE 500 based on:

• Consistent dividend declarations in at least 80% of the last 10 years
• Elimination of companies in the bottom quartile of 3-year average dividend yield
• Final selection based on normalized Z-scores with a single stock cap of 4%

Rebalancing Frequency: Quarterly

Impact Cost Compliance: At least 85% of stocks must meet dividend and liquidity norms.

Top Constituents (as of May 31, 2025):

Liquidity & Trading

The scheme will be listed on NSE and BSE, with Market Makers appointed to ensure continuous liquidity. Units will be available for trading like any other equity stock.

• Market Makers include:
  • Mirae Asset Capital Markets (India) Pvt Ltd
  • East India Securities Ltd
  • Kanjalochana Finserve Pvt Ltd
  • Parwati Capital Markets Pvt Ltd
  • Vaibhav Stock & Derivatives Broking Pvt Ltd
  • IRage Broking Services LLP

Redemption Provisions (Direct with AMC):

Allowed for Market Makers and investors above ₹25 crore. Also allowed for other investors under the following SEBI-specified conditions:

1. Units trade at >1% discount to NAV for 7 straight trading days
2. No quotes available on exchanges for 3 consecutive trading days
3. Daily average bid size is <0.5x of creation unit size for 7 consecutive trading days

Expense Ratio & TER

The Total Expense Ratio (TER) is capped at 1.00% p.a., covering investment management fees, custodian, RTA, marketing, and other fund-level operational expenses. A 1 bps allocation is mandated for investor education and awareness initiatives.

NAV Disclosure and Tracking Error

• NAV will be published daily on the AMC and AMFI websites by 11:00 PM.
• iNAV (indicative NAV) will be updated every 15 seconds during market hours on stock exchanges.
• Tracking error is expected to remain under 2% on a 12-month rolling basis, barring abnormal market conditions.

Fund Management Team

About Mirae Asset Mutual Fund

Mirae Asset Mutual Fund is managed by Mirae Asset Investment Managers (India) Pvt. Ltd, registered under SEBI with a presence across equity, hybrid, and passive categories. The AMC manages a broad suite of ETFs including Nifty 50, Nifty Midcap 150, Nifty Financial Services, and thematic sector-based strategies. The ETF offerings are listed on NSE and BSE and are supported by robust market-making infrastructure.

REF: https://www.sebi.gov.in/filings/mutual-funds/jul-2025/mirae-asset-bse-500-dividend-leaders-50-etf_95249.html

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