InvestorQ : What are the IIFL views on Mirae Asset NYSE FANG+ ETF FoF?
Swapnil Sarang made post

What are the IIFL views on Mirae Asset NYSE FANG+ ETF FoF?

IIFL Expert answered.
1 year ago
Mirae Asset NYSE FANG+ ETF FoF is a newly launched fund that aims to generate returns commensurate with the performance of the NYSE FANG+ Total Return Index, a USA-based index. Thus the scheme will have equal weight exposure in innovative high growth technology, internet, and media stocks. Companies that are geared to participate in future technology disruptions.

The inclusion of international equities helps investors further diversify their existing portfolios and reduce risk. In this case, the scheme is suitable for investors who are seeking geographical diversification and at the same time want to invest in high-quality high-growth technology stocks in the US. However, it is very important for the investors to undergo a comprehensive risk profiling exercise and invest according to their risk appetite, investment horizon and long-term realistic financial goals of life as the risk grade of the scheme is "Very High".

Since the scheme falls into the international category, its returns will be taxed like debt funds. That is, returns redeemed before 36 months of one’s investment date will be subject to marginal rate taxes while the returns redeemed post 36 months will attract a flat 20% tax with indexation benefits.

Since it is a newly launched scheme and has no historical information, its performance cannot be measured. However, the index it is following has generated superior returns over a long period of time but the past performance is not guaranteed.