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DRAFT SCHEME INFORMATION DOCUMENT
SECTION I
SO-1
Mirae Asset BSE 500 Dividend Leaders 50 ETF
(An open-ended scheme replicating/tracking BSE 500 Dividend Leaders 50 Total Return Index)
(Scrip Code for NSE & BSE will be added after listing of the units)
SO-3
Note: The above Product Labelling assigned during the NFO is based on internal assessment of the scheme
characteristics or model portfolio and the same may vary post NFO when the actual investments are made.
Offer for Sale of Units at 1/100th value of the BSE 500 Dividend Leaders 50 closing Index as on the date of
allotment for applications received during the New Fund Offer (“NFO”) period and at approximately
indicative NAV based prices (along with applicable charges and execution variations) during the Ongoing
Offer for applications directly received at AMC.
New Fund Offer opens on: - XX/XX/XXXX
New Fund Offer closes on: -XX/XX/XXXX
Scheme re-opens on: - XX/XX/XXXX
The subscription list may be closed earlier by giving at least one day’s notice in one daily newspaper, however
the NFO period shall be open for minimum 3 working days. The Trustee reserves the right to extend the
closing date of the New Fund Offer Period, subject to the condition that the subscription list of the NFO
period shall not be kept open for more than 15 days.
The units of the Scheme are listed on the National Stock Exchange of India Ltd. (NSE) and BSE Limited
(BSE). All investors including Market Makers and Large Investors can subscribe (buy) / redeem (sell) units
on a continuous basis on the NSE/BSE on which the Units are listed during the trading hours on all the trading
days. In addition, Market Makers can directly subscribe to / redeem units of the Scheme on all Business Days
with the Fund in ‘Creation Unit Size’ at NAV based prices on an ongoing basis. Large Investors can transact
directly with the Fund for an amount greater than INR 25 crores.
Name of Mutual Fund: Mirae Asset Mutual Fund
Name of Asset Management Company: Mirae Asset Investment Managers (India) Private Limited
CIN: U65990MH2019PTC324625
Name of Trustee Company: Mirae Asset Trustee Company Private Limited
CIN: U65191MH2007FTC170231
Registered & Corporate Office:
Unit No.606, Windsor Building, Off. C.S.T Road, Kalina, Santacruz (East), Mumbai – 400098
Page 1 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFTel. No.: 022-678 00 300 Fax No.: 022- 6725 3940 - 47
Website: www.miraeassetmf.co.in E-mail: miraeasset@miraeassetmf.co.in
The particulars of the Scheme have been prepared in accordance with Securities and Exchange Board of
India (Mutual Funds) Regulations, 1996 (hereinafter referred to as SEBI (Mutual Funds) Regulations) as
amended till date and circulars issued thereunder filed with SEBI, along with Due Diligence Certificate
from the Asset Management Company. The units being offered for public subscription have not been
approved or recommended by SEBI nor has SEBI certified the accuracy or adequacy of the SID.
The Scheme Information Document sets forth concisely the information about Mirae Asset BSE 500
Dividend Leaders 50 ETF that a prospective investor ought to know before investing. Before investing,
investors should also ascertain about any further changes to this SID after the date of this Document from
the Mutual Fund/ Investor Service Centers/ Website/ Distributors or Brokers.
The Investors are advised to refer to the Statement of Additional Information (SAI) for details of
Mirae Asset Mutual Fund, standard risk factors, special considerations, tax and legal issues and
general information on www.miraeassetmf.co.in
SAI is incorporated by reference (is legally a part of the SID). For a free copy of the current SAI,
please contact your nearest Investor Service Centre or log on to our website.
The SID (Section I and II) should be read in conjunction with SAI and not in isolation.
This SID is dated XX/XX/XXXX
Page 2 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFTable of Contents
SECTION I ............................................................................................................................................ 1
PART I. HIGHLIGHTS/SUMMARY OF THE SCHEME .............................................................. 6
DUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY ................................................. 13
PART II. INFORMATION ABOUT THE SCHEME ........................................................................ 14
A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS? ...................................................... 14
B. WHERE WILL THE SCHEME INVEST? .............................................................................. 17
C. WHAT ARE THE INVESTMENT STRATEGIES? ................................................................ 17
D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE? .................................. 19
E. WHO MANAGES THE SCHEME? ........................................................................................ 19
F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE MUTUAL
FUND? .............................................................................................................................................. 21
G. HOW HAS THE SCHEME PERFORMED ............................................................................. 22
H. ADDITIONAL SCHEME RELATED DISCLOSURES ......................................................... 22
PART III- OTHER DETAILS ....................................................................................................... 23
A. COMPUTATION OF NAV ...................................................................................................... 23
B. NEW FUND OFFER (NFO) EXPENSES ................................................................................ 24
C. ANNUAL SCHEME RECURRING EXPENSES .................................................................... 24
D. LOAD STRUCTURE................................................................................................................ 27
SECTION II ........................................................................................................................................ 29
I. INTRODUCTION .................................................................................................................. 29
A. DEFINITIONS/INTERPRETATION ....................................................................................... 29
B. RISK FACTORS ...................................................................................................................... 29
C. RISK MITIGATION STRATEGIES ....................................................................................... 35
II. INFORMATION ABOUT THE SCHEME:..................................................................... 35
A. WHERE WILL THE SCHEME INVEST ................................................................................ 35
B. WHAT ARE THE INVESTMENT RESTRICTIONS? ........................................................... 46
C. FUNDAMENTAL ATTRIBUTES ........................................................................................... 51
D. INDEX METHODOLOGY ......................................................................................................... 54
E. PRINCIPLES OF INCENTIVE STRUCTURE FOR MARKET MAKERS ........................... 56
F. OTHER SCHEME SPECIFIC DISCLOSURES: ..................................................................... 56
III. OTHER DETAILS .................................................................................................................... 71
A. PERIODIC DISCLOSURES .................................................................................................... 71
B. TRANSPARENCY/NAV DISCLOSURE ............................................................................... 74
C. TRANSACTION CHARGES AND STAMP DUTY- ............................................................. 74
D. ASSOCIATE TRANSACTIONS ............................................................................................. 75
E. TAXATION .............................................................................................................................. 75
F. RIGHTS OF UNITHOLDERS ................................................................................................. 76
G. LIST OF OFFICIAL POINTS OF ACCEPTANCE ................................................................. 76
H. PENALTIES, PENDING LITIGATION OR PROCEEDINGS, FINDINGS OF INSPECTIONS
OR INVESTIGATIONS FOR WHICH ACTION MAY HAVE BEEN TAKEN OR IS IN THE
PROCESS OF BEING TAKEN BY ANY REGULATORY AUTHORITY ................................... 76
Page 3 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFDISCLAIMER 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/5839 dated June 03, 2025 permission to the Mutual Fund to use the Exchange's name in this
Scheme Information Document as one of the stock exchanges on which the Mutual Fund's units are
proposed to be listed subject to, the Mutual Fund fulfilling various criteria for listing. The Exchange
has scrutinized this Scheme Information Document for its limited internal purpose of deciding on the
matter of granting the aforesaid permission to the Mutual Fund. It is to be distinctly understood that the
aforesaid permission given by NSE should not in any way be deemed or construed that the Scheme
Information Document has been cleared or approved by NSE; nor does it in any manner warrant, certify
or endorse the correctness or completeness of any of the contents of this Scheme Information
Document; nor does it warrant that the Mutual Fund's units will be listed or will continue to be listed
on the Exchange; nor does it take any responsibility for the financial or other soundness of the Mutual
Fund, its sponsors, its management or any scheme of the Mutual Fund.
Every person who desires to apply for or otherwise acquire any units of the Mutual Fund may do so
pursuant to independent inquiry, investigation and analysis and shall not have any claim against the
Exchange whatsoever by reason of any loss which may be suffered by such person consequent to or in
connection with such subscription /acquisition whether by reason of anything stated or omitted to be
stated herein or any other reason whatsoever.
DISCLAIMER OF BSE:
“BSE Ltd. (“the Exchange”) has given vide its letter no. LO/IPO/AG/MF/IP/10/2025-26 dated June 03,
2025 permission to use the Exchange’s name in this SID as one of the Stock Exchanges on which this
Mutual Fund’s Units are proposed to be listed. The Exchange has scrutinized this SID for its limited internal
purpose of deciding on the matter of granting the aforesaid permission to. The Exchange does not in any
manner: -
i) warrant, certify or endorse the correctness or completeness of any of the contents of this SID; or
ii) warrant that this scheme’s units will be listed or will continue to be listed on the Exchange; or
iii) take any responsibility for the financial or other soundness of this Mutual Fund, its promoters, its
management or any scheme or project of this Mutual Fund;
and it should not for any reason be deemed or construed that this SID has been cleared or approved by the
Exchange.
Every person who desires to apply for or otherwise acquires any unit of this Fund may do so pursuant to
independent inquiry, investigation and analysis and shall not have any claim against the Exchange
whatsoever by reason of any loss which may be suffered by such person consequent to or in connection
with such subscription/ acquisition whether by reason of anything stated or omitted to be stated herein or
any other reason whatsoever.
DISCLAIMER BSE INDICES LIMITED
The BSE Indices are published by Asia Index Private Limited (“AIPL”), which is a wholly owned
subsidiary of BSE Limited (“BSE”). BSE® and SENSEX® are registered trademarks of BSE. The
trademarks have been licensed to AIPL and have been sublicensed for use for certain purposes by
Page 4 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFLicensee. Licensee’s “[Insert Product]” (the “Product”) is/are not sponsored, endorsed, sold or
promoted by AIPL or BSE. None of AIPL or BSE makes any representation or warranty, express or
implied, to the owners of the Product(s) or any member of the public regarding the advisability of
investing in securities generally or in the Product particularly or the ability of the Index to track general
market performance. AIPL’s and BSE’s only relationship to Licensee with respect to the Index is the
licensing of the Index and certain trademarks, service marks and/or trade names of AIPL, BSE and/or
their licensors. The BSE Indices are determined, composed and calculated by AIPL or its agent without
regard to Licensee or the Product. None of AIPL or BSE are responsible for and have not participated
in the determination of the prices, and amount of the Product or the timing of the issuance or sale of the
Product or in the determination or calculation of the equation by which the Product is to be converted
into cash, surrendered or redeemed, as the case may be. AIPL and BSE have no obligation or liability
in connection with the administration, marketing or trading of the Product. There is no assurance that
investment products based on the Index will accurately track index performance or provide positive
investment returns. AIPL and BSE are not investment advisors. Inclusion of a security within an index
is not a recommendation by AIPL or BSE to buy, sell, or hold such security, nor is it considered to be
investment advice.
AIPL, BSE AND THEIR THIRD PARTY LICENSORS DO NOT GUARANTEE THE ADEQUACY,
ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE INDEX OR ANY DATA
RELATED THERETO. AIPL, BSE AND THEIR THIRD PARTY LICENSORS SHALL NOT BE
SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS
THEREIN. AIPL, BSE AND THEIR THIRD PARTY LICENSORS MAKE NO EXPRESS OR
IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIM ALL WARRANTIES, OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO
RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE PRODUCT, OR ANY OTHER
PERSON OR ENTITY FROM THE USE OF THE INDEX OR WITH RESPECT TO ANY DATA
RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT
WHATSOEVER SHALL AIPL, BSE OR THEIR THIRD PARTY LICENSORS BE LIABLE FOR
ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES
INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR
GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBLITY OF SUCH
DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. THERE
ARE NO THIRDPARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS
BETWEEN AIPL AND LICENSEE, OTHER THAN THE LICENSORS OF AIPL (INCLUDING
BSE).
Page 5 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFPart I. HIGHLIGHTS/SUMMARY OF THE SCHEME
Sr. No. Title Description
I. Name of the scheme Mirae Asset BSE 500 Dividend Leaders 50 ETF
II. Category of the Scheme Other Schemes - Exchange Traded Fund (ETF)
III. Scheme type An open-ended scheme replicating/tracking BSE 500 Dividend
Leaders 50 Total Return Index
IV. Scheme code It is to be obtained from NSDL and will be updated at the time of
SO-7
filing launch SID with SEBI.
V. Investment objective The investment objective of the scheme is to generate returns,
before expenses, that are commensurate with the performance of
the BSE 500 Dividend Leaders 50 Total Return Index, subject to
SO-5
tracking error. The Scheme does not guarantee or assure any
returns.
There is no assurance that the investment objective of the Scheme
will be achieved.
VI. Liquidity/listing details The Units of the ETF will be listed on the Capital Market Segment
of the National Stock Exchange of India Ltd (NSE) /BSE Limited
(BSE) and/or any other recognised stock exchanges as may be
decided by the AMC from time to time. All investors including
Market Makers and Large Investors can subscribe (buy) / redeem
(sell) Units of the Scheme on a continuous basis on the NSE and/
or BSE on which the Units are listed during the trading hours on
all the trading days. The Units of the Scheme may be bought or
sold on all trading days at prevailing listed price on such Stock
Exchange(s). Alternatively, the Market Makers may subscribe to
and/or redeem the units of the Scheme with the Mutual Fund on
any business day during the ongoing offer period commencing not
later than 5(five) business days from the date of allotment at
approximately indicative NAV based prices (along with
applicable charges and execution variations) for applications
directly received at AMC, provided the units offered for
subscription and/or redemption are not less than Creation Unit
size & in multiples thereof. Large investors can subscribe/redeem
directly with the AMC for an amount greater than INR 25 crores.
The price of Units of the Scheme in the secondary market on the
Stock Exchange(s) will depend on demand and supply at that
point of time. There is no minimum trade amount, although Units
are normally traded in round lots of 1 Unit.
In addition, Market Makers can directly subscribe to/ redeem
Units of the Scheme on all Business Days with the Fund in
‘Creation Unit Size’ and Large investors can subscribe to/ redeem
Units of the Scheme for an amount greater than INR 25 crores on
all Business Days on an ongoing basis.
Page 6 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFThe AMC will appoint atleast two Market Maker(s) to provide for
the liquidity in secondary market on an ongoing basis. The Market
Maker(s) would offer two-way quotes (buy and sell quotes) in the
secondary market for ensuring liquidity in the Units of the
Scheme.
The list of Market Makers will be updated on our website,
https://www.miraeassetmf.co.in. Presently, following Market
Makers have been appointed by the AMC:
• Mirae Asset Capital Markets (India) Private Limited.
• Kanjalochana Finserve Private Limited
• East India Securities Limited
• Parwati Capital Markets Privates Limited
• Vaibhav Stock & Derivatives Broking Private Limited
• IRage Broking Services LLP
Redemption of units directly with the Mutual Fund
(other than Market Makers): Investors other than Market
Makers can redeem units directly with the Fund for less than
Creation Unit size at approximately indicative NAV based prices
(along with applicable charges and execution variations) of units
without any exit load if:
i. Traded price (closing price) of the ETF units is at discount of
more than 1% to the day end NAV for 7 continuous trading
days, or
ii. No quotes for such ETFs are available on stock exchange(s)
for 3 consecutive trading days, or
iii. Total bid size on the exchange is less than half of creation
units size daily, averaged over a period of 7 consecutive
trading days.
Such instances shall be tracked by the AMC on an ongoing basis
and in case any of the above mentioned scenarios arises, the same
shall be disclosed on the website of the Mutual Fund.
Under these circumstances, investors, as specified above, can
redeem units of the Scheme directly with the fund house without
any exit load.
The aforesaid criteria for the direct redemption with the fund
house are also available at the website of the AMC. The mutual
fund will track the aforesaid liquidity criteria and display it on its
website viz., https://www.miraeassetmf.co.in/ if the same is
triggered, no exit load would be applicable in such cases.
Redemption by NRIs/FIIs/FPI
Page 7 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFCredit balances in the account of a NRIs/FIIs/FPI unitholder may
be redeemed by such unit holder subject to any procedures laid
down by the RBI. Payment to NRI/FII/FPI, unit holder will be
subject to the relevant laws/guidelines of RBI as are applicable
from time to time (subject to deduction of tax at source as
applicable). The Fund will not be liable for any delays or for any
loss on account of exchange fluctuations while converting the
rupee amount in US Dollar or any other currency. In case of
redemptions by NRIs, requisite TDS will be deducted from the
respective redemption proceeds.
Note: The mutual fund will rely on the NRI status and his account
details as recorded in the depository system. Any changes to the
same can be made only through the depository system.
Mutual fund will repurchase units from Market Maker and large
investors on any business day provided the value of units offered
for repurchase is not less than creation unit size.
VII. Benchmark (Total BSE 500 Dividend Leaders 50 TRI (Total Return Index)
Return Index)
Rationale for adoption of benchmark:
The Trustees have adopted BSE 500 Dividend Leaders 50 Index
as the benchmark index.
As per its investment objective, the investment would primarily be
in Securities which are constituents of the benchmark index. Thus,
the composition of the aforesaid benchmark index is such that it is
most suited for comparing performance of the Scheme.
VIII. NAV disclosure The AMC will calculate and disclose the first NAV under the
SO-41 Scheme not later than 5 Business Days from the date of allotment
of units under the NFO Period. Subsequently, the AMC shall
update the NAVs on the website of the Mutual Fund
https://www.miraeassetmf.co.in/ and on the website of
Association of Mutual Funds in India - AMFI
(www.amfiindia.com) by 11.00 p.m. on every Business Day.
Indicative NAV (iNAV):
The AMC shall also calculate indicative NAV and will be updated
during the market hours on its website
https://www.miraeassetmf.co.in. Indicative NAV will not have any
bearing on the creation or redemption of units directly with the Fund
by the Market Makers /Large Investors.
Indicative NAV shall be disclosed on Stock exchange(s), where the
units will be listed, on continuous basis within a maximum time lag
of 15 seconds during the trading hours.
Page 8 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFFor transactions by Market Makers / large investors directly with
the AMCs, intra-day NAV based on the executed price at which the
securities representing the underlying index are purchased / sold
will be applicable.
Further Details in Section II.
IX. Applicable timelines Timeline for
• Dispatch of redemption proceeds: 3 working days from the
date of redemption
• Dispatch of IDCW (if applicable) etc.: within 7 working days
from the record date
X. Plans and Options The Scheme offers only Growth Option. However, Unit holders are
Plans/Options and sub requested to note that the Trustees may at their absolute discretion
options under the Scheme reserve the right to declare IDCW from time to time (which will be
paid out to the Unit holders) in accordance with the IDCW Policy
set out below. The AMC and the Trustees reserve the right to
introduce such other plans/options as they deem necessary or
desirable from time to time, in accordance with the SEBI
Regulations.
XI. Load Structure Exit Load:
For investors transacting directly with the AMC: No Exit load will
be levied on redemptions made by Market Makers/ Large
Investors directly with the AMC
For investors transacting on the exchange: Not Applicable.
XII. Minimum Application During NFO Period: Rs. 5,000 per application and in multiples
Amount/switch in of Re. 1 thereafter. Units will be allotted in whole figures and the
balance amount will be refunded.
On Continuous Basis:
Market Maker: Application for subscription of Units directly
with the Fund in Creation Unit Size at NAV based prices in
exchange of Portfolio Deposit and Cash Component.
Large Investors: Minimum amount of Rs. 25 crores for
transacting directly with the AMC.
Other investors (including Market Maker, Large Investors
and Regulated Entities): Units of the Scheme can be subscribed
(in lots of 1 Unit) during the trading hours on all trading days on
the NSE and BSE on which the Units are listed.
XIII. Minimum Additional On Continuous Basis:
Purchase Amount
Page 9 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFMarket Maker: Application for subscription of Units directly
with the Fund in Creation Unit Size at NAV based prices in
exchange of Portfolio Deposit and Cash Component.
Large Investors: Minimum amount of Rs. 25 crores for
transacting directly with the AMC.
Other investors (including Market Maker, Large Investors
and Regulated Entities): Units of the Scheme can be subscribed
(in lots of 1 Unit) during the trading hours on all trading days on
the NSE and BSE on which the Units are listed.
XIV. Minimum Redemption:
Redemption/switch out
amount Market Maker: Application for redemption of Units directly
with the Fund in Creation Unit Size.
Large Investors: Minimum amount of Rs. 25 crores for
redeeming directly with the AMC.
Other investors (including Market Maker, Large Investors
and Regulated Entities): Units of the Scheme can be redeemed
(in lots of 1 Unit) during the trading hours on all trading days on
the NSE and BSE on which the Units are listed.
XV. New Fund Offer Period NFO opens on XX/XX/XXX
NFO closes on XX/XX/XXX
This is the period during
which a new scheme sells The Trustee may close subscription list earlier by giving at least
its units to the investors one day’s notice in one daily national newspaper. The Trustee
reserves the right to extend the closing date of the NFO Period,
SO-34
subject to the condition that the entire NFO period including the
extension, shall not be kept open for more than 15 days. Further,
the NFO shall remain open for subscription for a minimum
period of 3 working days in accordance with clause 1.10.1A of
SEBI Master Circular dated June 27, 2024. Any such extension
shall be announced by way of a notice – cum – addendum as
prescribed by the SEBI regulation.
Any modification to the New Fund Offer Period shall be
announced by way of an Addendum uploaded on website of the
AMC - i.e. https://www.miraeassetmf.co.in/
XVI. New Fund Offer Price Offer for Sale of Units at 1/100th value of the BSE 500 Dividend
Leaders 50 closing Index as on the date of allotment for
This is the price per unit applications received during the New Fund Offer (“NFO”) period
that the investors have to and at approximately indicative NAV based prices (along with
pay to invest during the applicable charges and execution variations) during the Ongoing
NFO Offer for applications directly received at AMC.
Page 10 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFXVII. Segregated portfolio/side The Scheme has the provision to segregate a portfolio comprising
pocketing disclosure of debt or money market instrument affected by a credit event.
SO-53
For Details, kindly refer SAI
XVIII Swing pricing disclosure Not Applicable
XIX. Stock lending/short Subject to the SEBI Regulations as applicable from time to time,
selling the Scheme may participate in stock lending upto the limits as
mentioned in the Asset allocation section.
For Details, kindly refer SAI
XX. How to Apply and other Application form and Key Information Memorandum may be
details obtained from Official Points of Acceptance (OPAs) / Investor
Service Centres (ISCs) of the AMC or RTA or Distributors or can
be downloaded from our website www.miraeassetmf.co.in.
The list of the OPA / ISC are available on our website as well.
Investors intending to trade in Units of the Schemes, through the
exchange platform will be required to provide demat account
details in the application form. The application forms for
subscriptions/redemptions (applicable for Market Makers /Large
Investors) should be submitted at any of the ISCs/Official Points
of Acceptance of the AMC.
Details in Section II.
XXII Investor services Contact Details for general service requests and complaint
resolution:
Mr. Chaitanya Chaubal
Mirae Asset Investment Managers (India) Pvt. Ltd.
606, 6th Floor, Windsor Bldg, Off CST Road, Kalina, Santacruz
(E), Mumbai - 400 098.
Telephone Nos.: 6780 0300
e-mail: customercare@miraeasset.com
Investors may contact any of the ISCs or the AMC by calling
the investor line of the AMC at "1800 2090 777" or visit the
website at www.miraeassetmf.co.in for complete details.
XXIII Specific attribute of the Nil
scheme (such as lock in,
duration in case of target
maturity scheme/close
ended schemes) (as
applicable)
XXIV. Special product /facility The following facilities shall be available under the Scheme during
available on ongoing the NFO:
basis
Page 11 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF• Switching
• Transaction through electronic mode (For Large Investors and
Market Makers)
• Auto Switch
The Following facilities are available during Continuous offer
period:
• Transaction through electronic mode (For Large Investors and
Market Makers)
• Mirae Asset MF Mobile Application Facility
Systematic Investment Plan, Systematic Transfer Plan, Systematic
Withdrawal Plan are not available under this scheme
XXV Weblink A weblink for Daily TER and TER for last 6 months:
https://www.miraeassetmf.co.in/downloads/statutory-
disclosure/total-expense-ratio
A weblink for scheme factsheet:
https://www.miraeassetmf.co.in/downloads/factsheet
XXVI Creation Unit Size Creation Unit is fixed number of units of the Scheme, which is
exchanged for a basket of securities underlying the index called
the "Portfolio Deposit" and a "Cash Component" or cash of
equivalent value. The Portfolio Deposit and Cash Component are
defined as follows:
Portfolio Deposit: Portfolio Deposit consists of pre-defined
basket of securities that represent the underlying index and
announced by AMC from time to time.
Cash Component: Cash component represents the difference
between the applicable net asset value of a creation unit and the
market value of the Portfolio deposit.
The Portfolio Deposit and Cash Component may change from
time to time due to change in NAV and will be announced by the
AMC on its website. The Creation Unit size for the scheme shall
be 1,00,000 units approx. For redemption of Units, it is vice versa
i.e., fixed number of units of the Scheme and a cash component is
exchanged for Portfolio Deposit. The Portfolio Deposit and the
cash component will change from time to time as decided by
AMC. The Creation Unit size may be changed by the AMC at their
discretion and the notice of the same shall be published on website
of Mutual Fund (www.miraeassetmf.co.in).
The Market Makers shall transact with the AMC only in multiples
of creation unit size.
Page 12 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFDUE DILIGENCE BY THE ASSET MANAGEMENT COMPANY
It is confirmed that:
(i) The Draft Scheme Information Document submitted to SEBI is in accordance with the SEBI
(Mutual Funds) Regulations, 1996 and the guidelines and directives issued by SEBI from
time to time.
(ii) All legal requirements connected with the launching of the Scheme as also the guidelines,
instructions, etc., issued by the Government and any other competent authority in this behalf,
have been duly complied with.
(iii) The disclosures made in the Scheme Information Document are true, fair and adequate to
enable the investors to make a well-informed decision regarding investment in the Scheme.
(iv) The intermediaries named in the Scheme Information Document and Statement of Additional
Information are registered with SEBI and their registration is valid, as on date.
(v) The contents of the Scheme Information Document including figures, data, yields etc. have
been checked and are factually correct.
(vi) A confirmation that the AMC has complied with the compliance checklist applicable for
Scheme Information Documents and other than cited deviations/ that there are no deviations
from the regulations
(vii) Notwithstanding anything contained in this Scheme Information Document, the provisions of
the SEBI (Mutual Funds) Regulations, 1996 and the guidelines there under shall be
applicable.
(viii) The Trustees have ensured that the Mirae Asset BSE 500 Dividend Leaders 50 ETF approved
by them is a new product offered by Mirae Asset Mutual Fund and is not a minor modification
of any existing scheme/fund/product.
Date: June 11, 2025 Sd/-
Place: Mumbai
Name: Rimmi Jain
Designation: Head – Compliance, Legal and
Company Secretary
Page 13 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFPart II. INFORMATION ABOUT THE SCHEME
A. HOW WILL THE SCHEME ALLOCATE ITS ASSETS?
Under normal circumstances, the asset allocation will be as follows:
Indicative allocation
Types of Instruments (% of tot al assets)
Minimum Maximum
Securities included in BSE 500 Dividend Leaders 50 Index 95 100
Money market instruments* including Tri Party REPO/ debt 0 5
SO-21
securities, Instruments and/or units of debt/liquid schemes of
domestic Mutual Funds.
SO-13
*Money Market Instruments will include TREPS, Commercial Paper, Certificates of Deposit,
Treasury Bills, Bills Rediscounting, Repos, short-term Government securities and any other such
short-term instruments as may be allowed under the regulations prevailing from time to time.
The Asset Allocation portion shall also include subscription and redemption cash flow which may
be undeployed due to various reasons (dividend from underlying securities, rebalancing or
balances for running cost of the scheme, residual amount due to execution on rounding off etc).
Subject to SEBI (MF) Regulations, 1996 and in accordance with Clause 12.11 of SEBI Master
Circular dated June 27, 2024 on Securities Lending Scheme and framework for short selling and
borrowing and lending of securities, the Scheme intends to engage in Stock Lending.
The Scheme shall adhere to the following limits should it engage in Stock Lending:
(a) Not more than 20% of the net assets can generally be deployed in Stock Lending
(b) Not more than 5% of the net assets can generally be deployed in Stock Lending to any single
approved intermediary i.e. broker.
The scheme does not intend to undertake / invest / engage in:
SO-18 • Securities Debt
• Debt Instrument with Special features (AT1 and AT2 bonds)
• Debt Instrument with Structured Obligations / Credit Enhancements
• Foreign securities including ADR/GDR/Foreign equity and overseas ETF
• Units of ReITs and InVITs
• Credit default swaps
• Repo in Corporate Debt Securities
• Short selling
• Unrated debt instruments
Exposure to equity derivatives of the index itself or its constituent stocks may be undertaken when
equity shares are unavailable, insufficient or for rebalancing in case of corporate actions for a
temporary period. The exposure to derivatives will be rebalanced to align with the underlying
index changes in weights or constituents. Index futures/options are meant to be an efficient way of
buying/selling an index compared to buying/selling a portfolio of physical shares representing an
index for ease of execution and settlement. It can help in reducing the Tracking Error in the
Page 14 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFScheme. Index futures/options may avoid the need for trading in individual components of the
index, which may not be possible at times, keeping in mind the circuit filter system and the liquidity
in some of the individual stocks. Index futures/options can also be helpful in reducing the
transaction costs and the processing costs on account of ease of execution of one trade compared
to several trades of shares comprising the underlying index and will be easy to settle compared to
physical portfolio of shares representing the underlying index. In case of investments in index
futures/options, the risk/reward would be the same as investments in portfolio of shares
representing an index. However, there may be a cost attached to buying an index future/option.
The Scheme will not maintain any leveraged or trading positions. Exposure to such derivatives
will be restricted to 20% of net assets of the scheme. The above deviation shall not exceed for
more than 7 days for the asset allocation table. The Scheme may invest in derivatives upto 20% of
the net assets of the Scheme for non-hedging purposes.
The cumulative gross exposure to equity, derivatives, debt instruments and money market
SO-17
instruments including domestic mutual fund will not exceed 100% of the net assets of the scheme
in accordance with Clause 12.24 of SEBI Master Circular dated June 27, 2024.
Cash or cash equivalents with residual maturity of less than 91 days may be treated as not creating
SO-14
any exposure. SEBI vide letter dated November 3, 2021 has clarified that Cash Equivalent shall
consist of Government Securities, T-Bills and Repo on Government Securities having residual
maturity of less than 91 days.
In accordance with Clause 3.4 of SEBI Master Circular dated June 27, 2024, the underlying index
shall comply with the portfolio concentration norms as prescribed.
Debt securities include, but are not limited to, Debt securities of the Government of India, State
and Local Governments, Government Agencies, Statutory Bodies, Public Sector Undertakings,
Public Sector Banks or Private Sector Banks or any other Banks, Financial Institutions,
Development Financial Institutions, and Corporate Entities, collateralized debt securities or any
other instruments as may be prevailing and permissible under the Regulations from time to time).
The Debt Securities (including money market instruments) referred to above could be fixed rate
or floating rate, listed, unlisted, privately placed, unrated among others, as permitted by regulation.
Pending deployment of funds of a Scheme in securities in terms of investment objectives of the
Scheme, a mutual fund can invest the funds of the Scheme in short term deposits of scheduled
commercial banks in accordance with Clause 12.16 of SEBI Master Circular dated June 27, 2024.
Further, the Scheme may, for meeting liquidity requirements invest in units of money
market/liquid schemes of Mirae Asset Mutual Fund and/or any other mutual fund provided that
aggregate inter-scheme investment made by all schemes under the same management or in
schemes under the management of any other asset management company shall not exceed 5% of
the net asset value of the mutual fund. The AMC shall not charge any investment management fees
with respect to such investment.
Indicative Table (Actual instrument/percentages may vary subject to applicable SEBI circulars)
SO-19
Sr. no Type of Instrument Percentage of Circular references*
exposure
Page 15 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF1. Securities Lending Upto 20% of the net Clause 12.11 of SEBI Master
assets can be deployed Circular dated June 27, 2024
in Stock Lending
Upto 5% of the net
assets can be deployed
in Stock Lending to
any single approved
intermediary i.e.
broker.
2. Equity Derivatives Upto 20% Clause 12.25 of SEBI Master
Circular dated June 27, 2024
3. Equity Derivatives for Upto 20% Clause 12.25 of SEBI Master
SO-20
non-hedging purposes Circular dated June 27, 2024
4. Securitized Debt 0% Clause 12.15 of SEBI Master
Circular dated June 27, 2024
5. Overseas Securities 0% Clause 12.19 of SEBI Master
Circular dated June 27, 2024
6. Debt Instruments with 0% Clause 12.3 of SEBI Master
Credit enhancement / Circular dated June 27, 2024
Structured Obligations
7. Repo in Corporate Debt 0% Clause 12.18 of SEBI Master
Securities Circular dated June 27, 2024
8. Short Selling 0% Clause 12.11 of SEBI Master
Circular dated June 27, 2024
9. Credit default swaps 0% Clause 12.28 of SEBI Master
Circular dated June 27, 2024
10. Debt instruments 0% Clause 12.2 of SEBI Master
having Special Features Circular dated June 27, 2024
11. ReITS and InVITS 0% Clause 12.21 of SEBI Master
Circular dated June 27, 2024
12. Unrated Debt 0% Clause 12.1.5 of SEBI Master
Instruments Circular dated June 27, 2024
13. Fund of Fund Schemes 0% Clause 9A of Seventh Schedule
of SEBI (Mutual Funds)
Regulations, 1996
*SEBI circular references (wherever applicable) in support of exposure limits of different types of
asset classes in asset allocation shall be provided.
Rebalancing due to passive breach
SO-22
In accordance with Clause 3.5.3.11 and 3.6.7 of SEBI Master Circular dated June 27, 2024, in case
of change in constituents of the index due to periodic review, the portfolio of the Scheme shall be
SO-24
rebalanced within 7 calendar days. Any transactions undertaken in the scheme portfolio in order
to meet the redemption and subscription obligations shall be done while ensuring that post such
transactions replication of the portfolio with the index is maintained at all points of time.
Page 16 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFIn the event of involuntary corporate action, the Scheme shall dispose the security not forming part
of the underlying index within 7 calendar Days from the date of allotment/ listing.
Rebalancing of deviation due to short term defensive consideration
SO-23
In the event of the asset allocation falling outside the limits specified in the asset allocation table,
the Fund Manager will rebalance the same within 7 days. However, at all times the portfolio will
adhere to the overall investment objectives of the Scheme. Any alteration in the investment pattern
will be for short-term defensive consideration as per Clause 1.14.1.2 of SEBI Master Circular dated
June 27, 2024 the intention being at all times to protect the interests of the Unit Holders.
Tracking Error
The Scheme, in general, will hold all the securities that constitute the underlying Index in the same
proportion as the index. Expectation is that, over a period of time, the tracking error of the Scheme
relative to the performance of the Underlying Index will be relatively low. The AMC would
monitor the tracking error of the Scheme on an ongoing basis and would seek to minimize tracking
error to the maximum extent possible. Under normal market circumstances such tracking error is
not expected to exceed 2% p.a for daily 12 month rolling return. However, in case of events like,
dividend received from underlying securities, and market volatility during rebalancing of the
portfolio following the rebalancing of the Underlying Index, etc. or in abnormal market
circumstances, the tracking error may exceed the above limits and the same shall be brought to the
notice of Trustees with corrective actions taken by the AMC, if any. Since the Scheme is an
exchange traded fund, it will endeavor that at no point of time the Scheme will deviate from the
index.
B. WHERE WILL THE SCHEME INVEST?
The corpus of the Scheme will invest in Securities which are constituents of BSE 500 Dividend
SO-29
Leaders 50 Index and in Money Market Instruments. The corpus of the Scheme will be invested in
various types of securities (including but not limited to) such as:
1. Equity and Equity Related Instruments of companies constituting BSE 500 Dividend Leaders
50 Index
2. Debt & Money Market Instruments
3. Investment in Derivatives
Detailed definition and applicable regulations/guidelines for each instrument shall be included in
Section II.
C. WHAT ARE THE INVESTMENT STRATEGIES?
SO-27
The Mirae Asset BSE 500 Dividend Leaders 50 ETF will be managed passively with investments
in stocks in the same proportion as in the BSE 500 Dividend Leaders 50 Index.
The investment strategy of the Scheme will be to invest in a basket of securities forming part of
BSE 500 Dividend Leaders 50 Index in similar weight proportion.
Page 17 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFThe investment strategy would revolve around reducing the tracking error to the least possible
through regular rebalancing of the portfolio, considering the change in weights of stocks in the
Index as well as the incremental collections/redemptions in the Scheme. A part of the funds may
be invested in debt and money market instruments, to meet the liquidity requirements.
Subject to the Regulations and the applicable guidelines the Scheme may invest in the schemes of
Mutual Funds. The investment strategy shall be in line with the asset allocation mentioned under
“Part II - A: How will the Scheme allocate its assets?”.
Though every endeavour will be made to achieve the objective of the Scheme, the
AMC/Sponsors/Trustee does not guarantee that the investment objective of the Scheme will
be achieved. No guaranteed returns are being offered under the Scheme.
Investment in Derivatives:
SO-28
The Scheme may take derivatives position based on the opportunities available subject to the
guidelines provided by SEBI from time to time and in line with the overall investment objective of
the Scheme. Derivatives can be traded over the exchange or can be structured between two counter-
parties. Those transacted over the exchange are called Exchange Traded derivatives whereas the
other category is referred to as OTC (Over the Counter) derivatives.
Derivative products are leveraged instruments and can provide disproportionate gains as well as
disproportionate losses to the investor. Execution of such strategies depends upon the ability of the
fund manager to identify such opportunities. Identification and execution of the strategies to be
pursued by the fund manager involve uncertainty and decision of fund manager may not always
be profitable. No assurance can be given that the fund manager will be able to identify or execute
such strategies.
The risks associated with the use of derivatives are different from or possibly greater than, the risks
associated with investing directly in securities and other traditional investments.
For detailed derivative strategies, please refer to SAI.
Policy for Investment decisions
The investment policy of the AMC has been determined by the Investment Committee (“IC”)
which has been ratified by the Boards of the AMC and Trustee. At the strategic level, the broad
investment philosophy of the AMC and the authorized exposure limits are spelt out in the
Investment Policy of the AMC. During trading hours, the Fund Managers have the discretion to
take investment decisions for the Scheme within the limits defined in the Investment Policy, these
decisions and the reasons thereof are communicated to the CEO for post facto approval.
The designated Fund Manager(s) of the Scheme will be responsible for taking day-to-day
investment decisions and will inter-alia be responsible for asset allocation, security selection and
timing of investment decisions.
Portfolio Turnover Policy
Page 18 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFPortfolio Turnover measures the volume of trading that occurs in a Scheme’s portfolio during a
given time period. The Scheme is an open-ended Exchange Traded Fund and it is expected that
there may be a number of subscriptions and repurchases on a daily basis through Stock
Exchange(s) or Market Makers and Large Investors. Generally, turnover will depend upon the
extent of purchase and redemption of units and the need to rebalance the portfolio on account of
change in the composition, if any, and corporate actions of securities included in BSE 500
Dividend Leaders 50 Index. However, it will be the endeavor of the Fund Manager to maintain an
optimal portfolio turnover rate commensurate with the investment objective of the Scheme and the
purchase/ redemption transactions on an ongoing basis in the Scheme.
D. HOW WILL THE SCHEME BENCHMARK ITS PERFORMANCE?
Benchmark (Total Returns Index): BSE 500 Dividend Leaders 50 Total Return Index
Rationale for adoption of benchmark:
The Trustees have adopted BSE 500 Dividend Leaders 50 Index as the benchmark index.
As per its investment objective, the investment would primarily be in Securities which are
constituents of the benchmark index. Thus, the composition of the aforesaid benchmark index is
such that it is most suited for comparing performance of the Scheme.
E. WHO MANAGES THE SCHEME?
Sr. Particulars Details Details
SO-33 No.
i. Name Ms. Ekta Gala Mr. Akshay Udeshi
ii. Age 32 years 30 years
iii. Educational B.Com & Inter CA (IPCC) MBA - Finance; B.E (Electronics)
Qualification
Page 19 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFiv. Past experience Ms. Ekta Gala has over 7 years of Mr. Akshay Udeshi has over 6 years of
experience as a dealer. Prior to this experience in the field of financial
assignment, Ms. Ekta Gala was services. He has been associated with
associated with ICICI Prudential Asset the AMC since June 2021. Prior to this
Management Company Ltd. assignment, Mr. Udeshi was
associated with Reliance Retail
The other schemes being managed by Limited where he was involved in
Ms. Ekta Gala are: product development in the
affordability space. He also has an
1. Mirae Asset Nifty Next 50 ETF experience with L&T Financial
2. Mirae Asset Nifty 50 ETF Services where he was involved in
3. Mirae Asset Nifty Financial product management of secured
Services ETF lending products.
4. Mirae Asset Nifty Midcap 150
ETF Others schemes co-managed by him:
5. Mirae Asset Nifty 100 Low
Volatility 30 ETF 1. Mirae Asset Nifty India
6. Mirae Asset BSE Sensex ETF Manufacturing ETF
7. Mirae Asset Nifty 200 Alpha 30 2. Mirae Asset Nifty 100 Low
ETF Volatility 30 ETF
8. Mirae Asset Nifty Smallcap 250 3. Mirae Asset Nifty 200 Alpha 30
Momentum Quality 100 ETF ETF
9. Mirae Asset Nifty 4. Mirae Asset Nifty Smallcap 250
MidSmallcap400 Momentum Momentum Quality 100 ETF
Quality 100 ETF 5. Mirae Asset Nifty
10. Mirae Asset Nifty500 Multicap MidSmallcap400 Momentum
50:25:25 ETF Quality 100 ETF
11. Mirae Asset Nifty India New Age 6. Mirae Asset Nifty India New Age
Consumption ETF Consumption ETF
12. Mirae Asset BSE 200 Equal 7. Mirae Asset BSE 200 Equal
Weight ETF Weight ETF
13. Mirae Asset BSE Select IPO ETF 8. Mirae Asset BSE Select IPO ETF
14. Mirae Asset Nifty 100 ESG 9. Mirae Asset Nifty 100 ESG Sector
Sector Leaders ETF Leaders ETF
15. Mirae Asset Nifty IT ETF 10. Mirae Asset Nifty EV and New
16. Mirae Asset Nifty Manufacturing Age Automotive ETF
ETF 11. Mirae Asset Nifty PSU Bank ETF
17. Mirae Asset Nifty Bank ETF 12. Mirae Asset Nifty Metal ETF
18. Mirae Asset Nifty PSU Bank ETF 13. Mirae Asset Gold ETF
19. Mirae Asset Nifty Metal ETF 14. Mirae Asset Silver ETF
20. Mirae Asset Gold ETF 15. Mirae Asset Nifty 100 ESG Sector
21. Mirae Asset Nifty 100 ESG Leaders Fund of Fund
Sector Leaders Fund of Fund 16. Mirae Asset NYSE FANG + ETF
22. Mirae Asset NYSE FANG + ETF Fund of Fund
Fund of Fund 17. Mirae Asset S&P 500 TOP 50 ETF
23. Mirae Asset S&P 500 TOP 50 Fund of Fund
ETF Fund of Fund 18. Mirae Asset Hang Seng TECH
24. Mirae Asset Hang Seng TECH ETF Fund of Fund
ETF Fund of Fund
Page 20 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF25. Mirae Asset Nifty India 19. Mirae Asset Nifty India
Manufacturing ETF Fund of Fund Manufacturing ETF Fund of Fund
26. Mirae Asset Nifty Smallcap 250 20. Mirae Asset Nifty Smallcap 250
Momentum Quality 100 ETF Momentum Quality 100 ETF Fund
Fund Of Fund Of Fund
27. Mirae Asset Nifty 21. Mirae Asset Nifty
MidSmallcap400 Momentum MidSmallcap400 Momentum
Quality 100 ETF Fund of Fund Quality 100 ETF Fund of Fund
28. Mirae Asset Nifty 200 Alpha 30 22. Mirae Asset Nifty 200 Alpha 30
ETF Fund of Fund ETF Fund of Fund
29. Mirae Asset Nifty India New Age 23. Mirae Asset Gold ETF Fund of
Consumption ETF Fund of Fund Fund
30. Mirae Asset BSE 200 Equal 24. Mirae Asset Nifty India New Age
Weight ETF Fund of Fund Consumption ETF Fund of Fund
31. Mirae Asset BSE Select IPO ETF 25. Mirae Asset BSE 200 Equal
Fund of Fund Weight ETF Fund of Fund
32. Mirae Asset Nifty LargeMidcap 26. Mirae Asset BSE Select IPO ETF
250 Index Fund Fund of Fund
33. Mirae Asset Nifty 50 Index Fund 27. Mirae Asset Nifty50 Equal Weight
34. Mirae Asset Nifty Total Market ETF
Index Fund
35. Mirae Asset Nifty50 Equal
Weight ETF
36. Mirae Asset EV and New Age
Automotive ETF
v. Tenure for NIL since it’s a new scheme
which the fund
manager has
been managing
the scheme
F. HOW IS THE SCHEME DIFFERENT FROM EXISTING SCHEMES OF THE
MUTUAL FUND?
The existing ETFs of Mirae Asset Mutual Fund are as below:
1. Mirae Asset Nifty 50 ETF
2. Mirae Asset Nifty Next 50 ETF
3. Mirae Asset Nifty Financial Services ETF
4. Mirae Asset Nifty India Manufacturing ETF
5. Mirae Asset Nifty Midcap 150 ETF
6. Mirae Asset Nifty 100 Low Volatility 30 ETF
7. Mirae Asset BSE Sensex ETF
8. Mirae Asset Nifty 200 Alpha 30 ETF
9. Mirae Asset Nifty Smallcap 250 Momentum Quality 100 ETF
10. Mirae Asset Nifty MidSmallcap400 Momentum Quality 100 ETF
11. Mirae Asset Nifty500 Multicap 50:25:25 ETF
Page 21 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF12. Mirae Asset Nifty India New Age Consumption ETF
13. Mirae Asset BSE 200 Equal Weight ETF
14. Mirae Asset BSE Select IPO ETF
15. Mirae Asset Nifty 100 ESG Sector Leaders ETF
16. Mirae Asset NYSE FANG + ETF
17. Mirae Asset S&P 500 TOP 50 ETF
18. Mirae Asset Hang Seng TECH ETF
19. Mirae Asset Nifty Bank ETF
20. Mirae Asset Nifty IT ETF
21. Mirae Asset Nifty EV and New Age Automotive ETF
22. Mirae Asset Nifty PSU Bank ETF
23. Mirae Asset Nifty Metal ETF
24. Mirae Asset Gold ETF
25. Mirae Asset Silver ETF
26. Mirae Asset Nifty 8-13 yr G-Sec ETF
27. Mirae Asset Nifty 1D Rate Liquid ETF - IDCW
28. Mirae Asset Nifty 1D Rate Liquid ETF – Growth
29. Mirae Asset Nifty50 Equal Weight ETF
The table showing the differentiation of the Scheme with the existing ETFs of Mirae Asset Mutual
Fund is available at: https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-
disclosure/offer-documents-data
G. HOW HAS THE SCHEME PERFORMED?
This is a new scheme and does not have any performance track record.
H. ADDITIONAL SCHEME RELATED DISCLOSURES
This is a new Scheme and therefore, the requirement of following additional disclosures shall
not be applicable for the Scheme:
i. Scheme’s portfolio holdings (top 10 holdings by issuer and fund allocation towards
various sectors are available on functional website link)
ii. Disclosure of name and exposure to Top 7 issuers, stocks, groups and sectors as a
percentage of NAV of the scheme in case of debt and equity ETFs/index funds through a
functional website link that contains detailed description
iii. Functional website link for Portfolio Disclosure
iv. Portfolio Turnover Ratio
v. The Aggregate Investment in the Scheme by
For any other disclosure w.r.t investments by key personnel and AMC directors including
regulatory provisions in this regard kindly refer SAI.
vi. Investments of AMC in the Scheme
The AMC shall not invest in any of the schemes unless full disclosure of its intention
to invest has been made in the Scheme Information Document and that the AMC
SO-58
shall not be entitled to charge any fees on such investment
Page 22 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFPart III- OTHER DETAILS
A. COMPUTATION OF NAV
The NAV of the Units of the Scheme will be computed by dividing the net assets of the Scheme
by the number of Units outstanding on the valuation date.
NAV of Units under the Options there under can be calculated as shown below:
NAV = (Market or Fair Value of Scheme’s investments + Current assets including Accrued Income
- Current Liabilities and provisions including accrued expenses)
_____________________________________________________________
No. of Units outstanding under the Scheme/Option.
The NAV, the sale and repurchase prices of the Units will be calculated and announced at the close
of each working day. The NAVs of the Scheme will be computed and units will be allotted upto 4
decimals.
Computation of NAV will be done after taking into account Income Distribution Cum Capital
Withdrawal paid, if any, and the distribution tax thereon, if applicable.
The valuation of the Schemes’ assets and calculation of the Schemes’ NAVs shall be subject to
audit on an annual basis and such regulations as may be prescribed by SEBI from time to time.
SO-42 Illustration on Computation of NAV:
If the net assets of the Scheme are Rs.10,65,44,345.34 and units outstanding are 1,00,00,000 then
the NAV per unit will be computed as follows:
10,65,44,345.34 / 1,00,00,000 = Rs. 10.6544 p.u. (rounded off to four decimals)
Methodology for calculation of sale and re-purchase price of the units of mutual fund
scheme:
• Ongoing Price for subscription (purchase)/ switch-in (from other schemes/ plans of the
mutual fund) by investors. (This is the price you need to pay for purchase/ switch-in):
The Sale Price for a valid purchase will be the Applicable NAV.
i.e. Sale Price = Applicable NAV
For a valid purchase request of Rs. 10,000 where the applicable NAV is Rs. 11.1234, the units
allotted will be:
= 10,000 (i.e. purchase amount
11.1234 (i.e. applicable NAV)
= 899.006 units (rounded to three decimals)
Transaction charges and other charges/expenses, if any, borne by the investors have not been
Page 23 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFconsidered in the above illustration.
• Ongoing Price for redemption (sale)/ switch-outs (to other schemes/plans of the mutual fund)
by investors. (This is the price you will receive for redemptions/ switch-outs):
The Repurchase Price for a valid repurchase will be the applicable NAV reduced by any exit load
(say 1%).
i.e. applicable NAV - (applicable NAV X applicable exit load).
For a valid repurchase request where the applicable NAV is Rs. 12.1234, the repurchase price will
be:
= 12.1234 - (12.1234 X 1.00%)
= 12.1234 - 0.1212
= Rs. 12.0022
Therefore, for a repurchase of 899.006 units, the proceeds received by the investor will be -
= 899.006 (units) * 12.0022 (Repurchase price)
= Rs. 10,790.02 (rounded to two decimals)
Transaction charges and other charges/expenses, if any, borne by the investors have not been
considered in the above illustration.
The Mutual Fund may charge the load within the stipulated limit of 5% and without any
discrimination to any specific group. The Repurchase Price however, will not be lower than 95%
of the NAV.
For other details such as policies w.r.t computation of NAV, rounding off, investment in foreign
securities, procedure in case of delay in disclosure of NAV etc. refer to SAI.
B. NEW FUND OFFER (NFO) EXPENSES
These expenses are incurred for the purpose of various activities related to the NFO like sales and
distribution fees paid marketing and advertising, registrar expenses, printing and stationary, bank
charges etc. NFO expenses were borne by the AMC. No NFO expenses will be charged to the
Scheme.
C. ANNUAL SCHEME RECURRING EXPENSES
These are the fees and expenses for operating the scheme. These expenses include Investment
Management and Advisory Fee charged by the AMC, Registrar and Transfer Agents’ fee,
marketing and selling costs etc. as given in the table below:
The AMC has estimated that upto 1.00% of the daily net assets of the scheme will be charged to
the scheme as expenses. For the actual current expenses being charged, the investor should refer
to the website of the mutual fund https://www.miraeassetmf.co.in/downloads/statutory-
disclosure/total-expense-ratio
Page 24 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF% p.a. of daily
Net Assets*
Expense Head
(Estimated
p.a.)
Investment Management & Advisory Fee Upto 1.00%
Audit fees/fees and expenses of trustees
Custodial Fees
Registrar & Transfer Agent Fees including cost of providing account
statements / IDCW / redemption cheques/ warrants
Marketing & Selling Expenses including Agents Commission and statutory
advertisement
Costs related to investor communications
Costs of fund transfer from location to location
SO-43 Cost towards investor education & awareness - 1 bps
Brokerage & transaction cost pertaining to distribution of units
Goods & Services Tax on expenses other than investment and advisory fees
Goods & Services Tax on brokerage and transaction cost
Other Expenses (to be specified as per Reg 52 of SEBI MF Regulations) *
Maximum Total expenses ratio (TER) permissible under Regulation 52
(6) (b)
*Other expenses: Any other expenses which are directly attributable to the Scheme, may be
charged with approval of the Trustee within the overall limits as specified in the Regulations except
those expenses which are specifically prohibited.
For the actual current expenses being charged, the investor should refer to the website of the
Mutual Fund.
The purpose of the above table is to assist the investor in understanding the various costs &
expenses that the investor in the Scheme will bear directly or indirectly. These estimates have been
made in good faith as per the information available to the AMC and the above expenses (including
investment management and advisory fees) are subject to inter-se change and may
increase/decrease as per actual and/or any change in the Regulations, as amended from time to
time.
All scheme related expenses including commission paid to distributors, by whatever name it may
be called and in whatever manner it may be paid, shall necessarily be paid from the scheme only
within the regulatory limits and not from the books of the Asset Management Companies (AMC),
its associate, sponsor, trustee or any other entity through any route.
In addition to the limits as specified in Regulation 52(6) of SEBI (Mutual Funds) Regulations 1996
SO-44 [‘SEBI Regulations’] or the Total Recurring Expenses (Total Expense Limit) as specified above,
the following costs or expenses may be charged to the scheme namely:-
a. GST payable on investment and advisory service fees (‘AMC fees’) charged by Mirae Asset
Investment Managers (India) Private Limited (‘Mirae Asset AMC)’;
Page 25 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFWithin the Total Expense Limit chargeable to the Scheme, following will be charged to the
Scheme:
- GST on other than investment and advisory fees, if any, (including on brokerage and
transaction costs on execution of trades) shall be borne by the Scheme;
- Investor education and awareness initiative fees of 1 basis point on daily net assets of
respective Scheme.
b. Brokerage and transaction cost incurred for the purpose of execution shall be charged to the
schemes (a) up to 12 bps and 5 bps for cash market transactions and derivatives transactions
respectively. Any payment towards brokerage & transaction costs, over and above the said 12
bps and 5 bps for cash market transactions and derivatives transactions respectively may be
charged to the Scheme within the maximum limit of Total Expense Ratio (TER) as prescribed
under Regulation 52 of the SEBI (Mutual Funds) Regulations, 1996
The current expense ratios will be updated on the AMC website
https://miraeassetmf.co.in/downloads/regulatory at least 3 working days prior to the effective date
of the change.
Further, the notice of change in base TER (i.e. TER excluding additional expenses provided in
Regulation 52(6A) (b) and 52(6A)(c) of SEBI (Mutual Funds) Regulations, 1996) in comparison
to previous base TER charged to the scheme will be communicated to investors of the scheme
through notice via email or SMS at least three working days prior to effecting such change.
However, any decrease in TER due to decrease in applicable limits as prescribed in Regulation 52
(6) (i.e. due to increase in daily net assets of the scheme) would not require issuance of any prior
notice to the investors.
The above change in the base TER in comparison to previous base TER charged to the scheme
shall be intimated to the Board of Directors of AMC along with the rationale recorded in writing.
The changes in TER shall also be placed before the Trustees on quarterly basis along with rationale
for such changes.
Illustration of impact of expense ratio on scheme’s returns (by providing simple example)
Particulars NAV
Opening NAV per unit A 10.000
Gross Scheme Returns @ 8.75% B 0.875
Expense Ratio @ 1.00 % p.a. C = (A x 1.00%) 0.100
Closing NAV per unit D = A + B - C 10.775
Net 1 Year Return E/A - 1 7.75%
*Distribution/Brokerage expense is not levied in ETF
The above calculation is provided to illustrate the impact of expenses on the scheme returns and
should not be construed as indicative Expense Ratio, yield or return.
Page 26 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFD. LOAD STRUCTURE
Exit Load is an amount which is paid by the investor to redeem the units from the scheme. Load
amounts are variable and are subject to change from time to time. For the current applicable
structure, please refer to the website of the AMC (https://www.miraeassetmf.co.in/) or may call at
‘1800 2090 777’ or your distributor.
Type of Load Load chargeable (as %age of NAV)
Exit • For investors transacting directly with the AMC: No Exit load will
be levied on redemptions made by Market Maker / Large Investors
directly with the AMC.
• For investors transacting on the exchange: Not Applicable.
Investors other than Market Makers can redeem units directly with the Fund for less than Creation
Unit size at approximately indicative NAV based prices (along with applicable charges and
execution variations) during the Ongoing Offer for units without any exit load if:
• Traded price (closing price) of the ETF units is at discount of more than 1% to the day end NAV
for 7 continuous trading days, or
• No quotes for such ETFs are available on stock exchange(s) for 3 consecutive trading days, or
• Total bid size on the exchange is less than half of creation units size daily, averaged over a period
of 7 consecutive trading days.
Such instances shall be tracked by the AMC on an ongoing basis and in case if any of the above
mentioned scenario arises, the same shall be disclosed on the website of the Mutual Fund.
For any change in exit load, AMC will issue an addendum and display it on the website/Investor
Service Centres.
The Mutual Fund may charge exit load within the stipulated limit of 5% and without any
SO-47
discrimination to any specific group. The Repurchase Price however, will not be lower than 95% of
the NAV.
The Trustee reserves the right to modify/alter the load structure and may decide to charge on the
Units with prospective effect, subject to the maximum limits as prescribed under the SEBI
Regulations. At the time of changing the load structure, the AMC shall take the following steps:
• Arrangements shall be made to display the changes/modifications in the SID in the form of a
notice in all the Mirae Asset ISCs’ and distributors’ offices and on the website of the AMC.
• The notice–cum-addendum detailing the changes shall be attached to SIDs and Key Information
Memoranda. The addendum will be circulated to all the distributors so that the same can be
attached to all SIDs and Key Information Memoranda already in stock.
• The introduction of the exit load along with the details shall be stamped in the acknowledgement
slip issued to the investors on submission of the application form and may also be disclosed in
the statement of accounts issued after the introduction of such load.
• A public notice shall be given in respect of such changes in one English daily newspaper having
nationwide circulation as well as in a newspaper published in the language of region where the
Head Office of the Mutual Fund is situated.
Page 27 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF• Any other measures which the mutual funds may feel necessary.
The AMC may change the load from time to time and in case of an exit/repurchase load this may be
linked to the period of holding. It may be noted that any such change in the load structure shall be
applicable on prospective investment only. The exit load (net off GST, if any, payable in respect of
the same) shall be credited to the Scheme of the Fund.
The distributors should disclose all the commissions (in the form of trail commission or any other
mode) payable to them for the different competing schemes of various mutual funds from amongst
which the scheme is being recommended to the investor.
Page 28 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFSection II
I. Introduction
A. Definitions/interpretation
Please refer the definitions/interpretation as disclosed under:
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-disclosure/offer-
documents-data
B. Risk factors
Standard Risk Factors:
• Investment in Mutual Fund units involves investment risks such as trading volumes, settlement risk,
liquidity risk, default risk including the possible loss of principal
• As the price / value / interest rate of the securities in which the Scheme invests fluctuates, the value
of your investment in the scheme can go up or down depending on various factors and forces
affecting capital markets and money markets.
• Past performance of the Sponsor/ AMC/ Mutual Fund does not guarantee the future performance
of the Scheme.
• The name of the Scheme does not in any manner indicate its quality or its future prospects and
returns.
• The Sponsor is not responsible or liable for any loss resulting from the operation of the Scheme
beyond the initial contribution of Rs. 1 lakh made by it towards setting up the Fund.
• The present scheme is not a guaranteed or assured return scheme.
Scheme Specific Risk Factors
SO-8
• Risk Factors associated with Exchange Traded Schemes
The Scheme is subject to the specific risks that may adversely affect the Scheme’s NAV, return and
/ or ability to meet its investment objective. The specific risk factors related to the Scheme include,
but are not limited to the following:
Passive Fund Investment Risks
1. Market Risk
The NAV of the Scheme will react to the securities market movements. The Investor may lose money
over short or long periods due to fluctuation in the Scheme’s NAV in response to factors such as
economic, political, social instability or diplomatic developments, changes in interest rates and
perceived trends in stock prices, market movements and over longer periods during market downturns.
Investments may be adversely affected by the possibility of expropriation or confiscatory taxation,
imposition of withholding taxes on Dividend or interest payments, limitations on the removal of funds
or other assets of the Scheme. The Scheme may not be able to immediately sell certain types of illiquid
Securities. The purchase price and subsequent valuation of restricted and illiquid Securities may reflect
a discount, which may be significant, from the market price of comparable Securities for which a liquid
market exists.
Page 29 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF2. Market Trading Risks
1. Absence of prior Active Market: Although the Scheme is listed on NSE/BSE, there can be no
assurance that an active secondary market will develop or be maintained. Hence there would be
time when trading in the Units of the Scheme would be infrequent.
2. Trading in Units may be Halted: Trading in the Units of the Scheme on NSE/BSE may be halted
because of market conditions or for reasons that in view of NSE/BSE or SEBI, trading in the
Units of the Scheme are not advisable. In addition, trading of the Units of the Scheme are subject
to trading halts caused by extraordinary market volatility and pursuant to NSE and SEBI ‘circuit
filter’ rules. There can be no assurance that the requirements of NSE/BSE necessary to maintain
the listing of the Units of the Scheme will continue to be met or will remain unchanged.
3. Lack of Market Liquidity: The Scheme may not be able to immediately sell certain types of
illiquid Securities. The purchase price and subsequent valuation of restricted and illiquid
Securities may reflect a discount, which may be significant, from the market price of comparable
Securities for which a liquid market exists.
4. Units of the Scheme May Trade at prices Other than NAV: The Units of the Scheme may trade
above or below their NAV. The NAV of the Scheme will fluctuate with changes in the market
value of the holdings of the Scheme. The trading prices of the Units of the Scheme will fluctuate
in accordance with changes in their NAV as well as market supply and demand for the Units of
the Scheme. However, given that Units of the Scheme can be created and Redeemed in Creation
Units directly with the Fund, it is expected that large discounts or premiums to the NAV of
Units of the Scheme will not sustain due to arbitrage opportunity available.
5. Regulatory Risk: Any changes in trading regulations by NSE/BSE or SEBI may affect the ability
of market maker to arbitrage resulting into wider premium/discount to NAV.
6. Reinvestment Risk: This risk refers to the interest rate levels at which cash flows received from
the Securities in the Scheme are reinvested. The additional income from reinvestment is the
“interest on interest” component. The risk is that the rate at which interim cash flows can be
reinvested may be lower than that originally assumed.
7. Risk of Substantial Redemptions: Substantial Redemptions of Units within a limited period of
time could require the Scheme to liquidate positions more rapidly than would otherwise be
desirable, which could adversely affect the value of both the Units being Redeemed and that of
the outstanding Units of the Scheme. The risk of a substantial Redemption of the Units may be
exacerbated where an investment is made in the Scheme as part of a structured product with a
fixed life and where such structured products utilize hedging techniques. Please also refer
Statement of Additional Information for additional details.
8. Regardless of the period of time in which Redemptions occur, the resulting reduction in the
NAV of the Scheme could also make it more difficult for the Scheme to generate profits or
recover losses. The Trustee, in the general interest of the Unit holders of the Scheme offered
under this SID and keeping in view of the unforeseen circumstances/unusual market conditions,
may limit the total number of Units which can be Redeemed on any Working Day depending
on the total “Saleable Underlying Stock” available with the Fund.
3.Volatility Risk
The equity markets and Derivative markets are volatile and the value of Securities, Derivative
contracts and other instruments correlated with the equity markets may fluctuate dramatically
from day to day. This volatility may cause the value of investment in the Scheme to decrease.
Page 30 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF4.Redemption Risk
Investors may note that even though the Scheme is an open-ended Scheme, the Scheme would
ordinarily repurchase Units in Creation Unit Size from Market Makers/large investors. Thus Unit
holdings less than creation unit size for Market Makers and Large investors can only be sold
through the secondary market on the Exchange unless any of the scenarios mentioned below have
occurred:
i. Traded price (closing price) of the ETF units is at discount of more than 1% to the day end
NAV for 7 continuous trading days, or
ii. No quotes for such ETFs are available on stock exchange(s) for 3 consecutive trading days, or
iii. Total bid size on the exchange is less than half of creation units size daily, averaged over a
period of 7 consecutive trading days.
5. Asset Class Risk
The returns from the types of Securities in which the Scheme invests may underperform returns
of general Securities markets or different asset classes. Different types of Securities tend to go
through cycles of out-performance and under-performance in comparison of Securities markets.
6. Passive Investments
As the Scheme proposes to invest not less than 95% of the net assets in the securities of the
underlying Index, the Scheme will not be actively managed. The Scheme which is linked to the
underlying index may be affected by a general decline in the Indian markets relating to its
underlying index. The Scheme as per its investment objective invests in in Securities which are
constituents of its underlying index regardless of its investment merit. The AMC does not attempt
to individually select stocks or to take defensive positions in declining markets.
The index methodology may be changed by the index provider in future due to several externalities.
The change in the methodology of the index may affect the future portfolio and/or performance of
the index and the scheme.
7. Tracking Error and Tracking Difference Risk
SO-10
The Fund Manager would not be able to invest the entire corpus exactly in the same proportion as
in the underlying index due to certain factors such as the fees and expenses of the Scheme,
corporate actions, cash balance, changes to the underlying index and regulatory restrictions, which
may result in Tracking Error with the underlying index. The Scheme’s returns may therefore
deviate from those of the underlying index. “Tracking Error” is defined as the standard deviation
of the difference between daily returns of the underlying index and the NAV of the Scheme.
Tracking Difference” is the annualized difference of daily returns between the Index and the NAV
of the scheme (difference between fund return and the index return). Tracking Error and Tracking
difference may arise including but not limited to the following reasons:
• Expenditure incurred by the Fund.
• Available funds may not be invested at all times as the Scheme may keep a portion of the funds
in cash to meet Redemptions, for corporate actions or otherwise.
• Securities trading may halt temporarily due to circuit filters.
• Corporate actions such as debenture or warrant conversion, rights issuances, mergers, change
in constituents etc.
Page 31 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF• Rounding-off of the quantity of shares in the underlying index.
• Dividend payout.
• Index providers undertake a periodical review of the scrips that comprise the underlying index
and may either drop or include new scrips. In such an event, the Fund will try to reallocate its
portfolio but the available investment/reinvestment opportunity may not permit absolute
mirroring immediately.
SEBI Regulations (if any) may impose restrictions on the investment and/or divestment activities
of the Scheme Such restrictions are typically outside the control of the AMC and may cause or
exacerbate the Tracking Error.
It will be the endeavor of the fund manager to keep the tracking error as low as possible. However,
in case of events like, dividend received from underlying securities, rights issue from
underlying securities, and market volatility during rebalancing of the portfolio following the
rebalancing of the underlying index, etc. or in abnormal market circumstances may result in
tracking error. There can be no assurance or guarantee that the Scheme will achieve any particular
level of tracking error relative to performance of the Index.
Risks Associated with Equity Investments:
• Equity and equity related securities are volatile and prone to price fluctuations on a daily basis. The
liquidity of investments made in the Scheme may be restricted by trading volumes and settlement
periods. Settlement periods may be extended significantly by unforeseen circumstances. The
inability of the Scheme to make intended securities purchases, due to settlement problems, could
cause the Scheme to miss certain investment opportunities. Similarly, the inability to sell securities
held in the Scheme portfolio would result at times, in potential losses to the Scheme, should there
be a subsequent decline in the value of securities held in the Scheme portfolio. Also, the value of
the Scheme investments may be affected by interest rates, changes in law/ policies of the
government, taxation laws and political, economic or other developments which may have an
adverse bearing on individual Securities, a specific sector or all sectors.
• Investments in equity and equity related securities involve a degree of risk and investors should not
invest in the equity Schemes unless they can afford to take the risk of losing their investment.
Risks Associated with Debt & Money Market Instruments
• Price-Risk or Interest-Rate Risk: Fixed income securities such as bonds, debentures and money
market instruments run price-risk or interest-rate risk. Generally, when interest rates rise, prices of
existing fixed income securities fall and when interest rates drop, such prices increase. The extent
of fall or rise in the prices is a function of the existing coupon, days to maturity and the increase or
decrease in the level of interest rates.
• Credit Risk: In simple terms this risk means that the issuer of a debenture/ bond or a money market
instrument may default on interest payment or even in paying back the principal amount on
maturity. Even where no default occurs, the price of a security may go down because the credit
rating of an issuer goes down. It must, however, be noted that where the Scheme has invested in
Government securities, there is no credit risk to that extent.
• Liquidity or Marketability Risk: This refers to the ease with which a security can be sold at or near
to its valuation yield-to-maturity (YTM). The primary measure of liquidity risk is the spread
Page 32 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFbetween the bid price and the offer price quoted by a dealer. Liquidity risk is today characteristic
of the Indian fixed income market.
• Reinvestment Risk: Investments in fixed income securities may carry reinvestment risk as interest
rates prevailing on the interest or maturity due dates may differ from the original coupon of the
bond. Consequently, the proceeds may get invested at a lower rate.
• Pre-payment Risk: Certain fixed income securities give an issuer the right to call back its securities
before their maturity date, in periods of declining interest rates. The possibility of such prepayment
may force the fund to reinvest the proceeds of such investments in securities offering lower yields,
resulting in lower interest income for the fund.
• Spread Risk: In a floating rate security the coupon is expressed in terms of a spread or mark up over
the benchmark rate. In the life of the security this spread may move adversely leading to loss in
value of the portfolio. The yield of the underlying benchmark might not change, but the spread of
the security over the underlying benchmark might increase leading to loss in value of the security.
• Concentration Risk: The Scheme portfolio may have higher exposure to a single sector, subject to
maximum of 20% of net assets, depending upon availability of issuances in the market at the time
of investment, resulting in higher concentration risk. Any change in government policy / businesses
environment relevant to the sector may have an adverse impact on the portfolio.
• Different types of securities in which the scheme would invest as given in the SID carry different
levels and types of risk. Accordingly the scheme’s risk may increase or decrease depending upon
its investment pattern. E.g. corporate bonds carry a higher amount of risk than Government
securities. Further even among corporate bonds, bonds, which are AA rated, are comparatively
more risky than bonds, which are AAA rated.
Risks Associated with Derivatives
The risks associated with the use of derivatives are different from or possibly greater than the risks
associated with investing directly in securities and other traditional instruments. Such risks include
mispricing or improper valuation and the inability of derivatives to correlate perfectly with underlying
assets, rates and indices. Trading in derivatives carries a high degree of risk although they are traded at
a relatively small amount of margin which provides the possibility of great profit or loss in comparison
with the principal investment amount. The options buyer’s risk is limited to the premium paid, while
the risk of an options writer is unlimited. However the gains of an options writer are limited to the
premiums earned. The writer of a call option bears a risk of loss if the value of the underlying asset
increases above the exercise price. The loss can be unlimited as underlying asset can increase to any
levels. The writer of a put option bears the risk of loss if the value of the underlying asset declines
below the exercise price and the loss is limited to strike price.
Investments in futures face the same risk as the investments in the underlying securities. The extent of
loss is the same as in the underlying securities. However, the risk of loss in trading futures contracts
can be substantial, because of the low margin deposits required, the extremely high degree of leverage
involved in futures pricing and the potential high volatility of the futures markets. The derivatives are
also subject to liquidity risk as the securities in the cash markets. The derivatives market in India is
nascent and does not have the volumes that may be seen in other developed markets, which may result
Page 33 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFin volatility in the values. For further details please refer to section “Investments Limitations and
Restrictions in Derivatives” in this SID.
Risk factors associated with processing of transaction through Stock Exchange Mechanism
The trading mechanism introduced by the stock exchange(s) is configured to accept and process
transactions for mutual fund units in both Physical and Demat Form. The allotment and/or redemption
of Units through NSE and/or BSE or any other recognised stock exchange(s), on any Business Day will
depend upon the modalities of processing viz. collection of application form, order
processing/settlement, etc. upon which the Fund has no control. However, units of the Scheme can only
be subscribed in demat mode. Moreover, transactions conducted through the stock exchange
mechanism shall be governed by the operating guidelines and directives issued by respective recognized
stock exchange(s).
Risk factors associated with Securities Lending
In accordance with the Regulations and applicable guidelines, the Fund may engage in stock lending
activities. The Securities will be lent by the Approved Intermediary against collateral received from
borrower, for a fixed period of time, on expiry of which the securities lent will be returned by the
borrower.
There are risks inherent to securities lending, including the risk of failure of the other party, in this
case the approved intermediary which is the clearing corporations of the Stock exchanges, to comply
with the terms of the agreement entered into between the lender of securities i.e. the Scheme and the
approved intermediary. Such failure can result in the possible loss of rights to the collateral put up by
the borrower of the securities, the inability of the approved intermediary to return the securities
deposited by the lender and the possible loss of any corporate benefits accruing to the lender from the
securities deposited with the approved intermediary.
The risk is adequately covered as Securities Lending & Borrowing (SLB) is an Exchange traded
product. Exchange offers an anonymous trading platform and gives the players the advantage of
settlement guarantee without the worries of counter party default. However, the Fund may not be able
to sell such lent securities during contract period or have to recall the securities which may be at higher
than the premium at which the security is lent.
Risks associated with segregated portfolio
1) Investor holding units of segregated portfolio may not able to liquidate their holding till the time
recovery of money from the issuer.
2) Security comprises of segregated portfolio may not realise any value.
3) Listing of units of segregated portfolio in recognised stock exchange does not necessarily guarantee
their liquidity. There may not be active trading of units in the stock market. Further trading price of
units on the stock market may be significantly lower than the prevailing NAV.
Risk Associated while transacting through Email:
The AMC allows investors for transacting in mutual fund units through email. This may involve certain
risks which the investor should carefully consider. Investors should note that email based instructions
are inherently vulnerable to risks such as interception, unauthorized access, phishing, spoofing, failed
Page 34 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFdelivery and unintended transmission and should ensure appropriate safeguards are in place when using
such mode of transaction. The AMC does not accept any responsibility or liability for any loss, damages
or inconvenience caused due to errors, delays, non - receipt or unauthorized access associated with
transacting through email.
C. Risk mitigation strategies
SO-9
Risks Associated with Equity and Equity Related Investments
Market Risk: Market risk is inherent to an equity scheme. Being a passively managed scheme, it will
invest in the securities included in its Underlying Index.
Risks Associated with Debt & Money Market Instruments
Credit Risk - The fund has a rigorous credit research process. There is a regulatory and internal cap on
exposure to each issuer. This ensures a diversified portfolio and reduced credit risk in the portfolio.
While these measures are expected to mitigate the above risks to a large extent, there can be no
assurance that these risks would be completely eliminated.
RISK CONTROL
The scheme aims to track the BSE 500 Dividend Leaders 50 Index (before expenses) as closely as
possible. The index is tracked on a regular basis and changes to the constituent’s or their weights, if any,
are replicated in the underlying portfolio with the purpose of minimizing tracking error.
ETF being a passive investment carries lesser risk as compared to active fund management. The
portfolio follows the index and therefore the level of stock concentration in the portfolio and its volatility
would be the same as that of the index, subject to tracking error. Thus there is no additional element of
volatility or stock concentration on account of fund manager decisions. The fund manager would
endeavor to keep cash levels at the minimal to control tracking error.
II. Information about the scheme:
SO-29
A. Where will the scheme invest?
Equity and Equity Related Instruments
The Scheme would invest in stocks constituting the BSE 500 Dividend Leaders 50 Index in the similar
proportion (weightage) as in the Index and endeavour to track the benchmark index.
The Scheme may take derivatives position based on the opportunities available subject to the guidelines
issued by SEBI from time to time and in line with the overall investment objective of the Scheme. These
may be taken to hedge the portfolio, rebalance the same or to undertake any other strategy as permitted
under the SEBI Regulations.
Debt & Money Market Instruments:
Page 35 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFThe Scheme will invest in debt and money market instruments. It retains the flexibility to invest across
all the securities in the debt and money markets.
Debt securities and Money Market Instruments will include but will not be limited to:
a. Securities created and issued by the Central and State Governments as may be permitted by RBI
(including but not limited to coupon bearing bonds, zero coupon bonds and treasury bills).
b. Securities guaranteed by the Central and State Governments (including but not limited to coupon
bearing bonds, zero coupon bonds and treasury bills).
c. Debt securities of domestic Government agencies and statutory bodies, which may or may not carry
a Central/State Government guarantee.
d. Corporate debt (of both public and private sector undertakings).
e. “money market instruments” includes commercial papers, commercial bills, treasury bills,
Government securities having an unexpired maturity up to one year, call or notice money, certificate
of deposit, usance bills, and any other like instruments as specified by the Reserve Bank of India
from time to time; subject to regulatory approvals where applicable.
f. Certificate of Deposits (CDs).
g. Commercial Paper (CPs). A part of the net assets may be invested in the Collateralized Borrowing
& Lending Obligations (CBLO) or in an alternative investment as may be provided by RBI to meet
the liquidity requirements.
h. The non-convertible part of convertible securities.
i. Any other domestic fixed income securities as permitted by SEBI / RBI from time to time.
j. Any other instruments/securities, which in the opinion of the fund manager would suit the
investment objective of the scheme subject to compliance with extant Regulations.
The Investment Manager will invest only in those debt securities that are rated investment grade by a
domestic credit rating agency authorized to carry out such activity, such as CRISIL, ICRA, CARE,
FITCH, etc. The securities may be acquired through Initial Public Offerings (IPOs), secondary market
operations, private placement, rights offer or negotiated deals.
The Scheme shall not enter into any repurchase and reverse repurchase obligations in all securities held
by it. The scheme does not intend to invest into any credit default swaps.
Investment in Derivatives:
The Scheme may take derivatives position based on the opportunities available subject to the guidelines
provided by SEBI from time to time and in line with the overall investment objective of the Scheme.
Derivatives can be traded over the exchange or can be structured between two counter-parties. Those
transacted over the exchange are called Exchange Traded derivatives whereas the other category is
referred to as OTC (Over the Counter) derivatives.
Page 36 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFConcepts and Examples of investing into Derivatives
Derivatives are financial contracts of pre-determined fixed duration, whose values are derived from the
value of an underlying primary financial instrument, commodity or index, such as: interest rates,
exchange rates, commodities and equities.
• Futures
A futures contract is an agreement between the buyer and the seller for the purchase and sale of a
particular asset at a specific price on a specific future date. The price at which the underlying asset
would change hands in the future is agreed upon at the time of entering into the contract. The actual
purchase or sale of the underlying asset involving payment of cash and delivery of the instrument does
not take place until the contracted date of delivery. A futures contract involves an obligation on both
the parties to fulfill the terms of the contract.
Currently, futures contracts have a maximum expiration cycle of 3-months. Three contracts are
available at any time for trading, with 1 month, 2 months and 3 months expiry respectively. Futures
contracts typically expire on the last Thursday of the month. For example, a contract with the January
expiration expires on the last Thursday of January.
A futures contract on the stock market index gives its owner the right and obligation to buy or sell the
portfolio of stocks characterized by the index. Stock index futures are cash settled; there is no delivery
of the underlying stocks.
Let us assume that the Nifty Index at the beginning of the month October 2018 was 5070 and three
index futures as under were available:
Expiry Month Bid Price Offer Price
October 18 5075 5080
November 18 5085 5090
December 18 5095 5100
The Scheme could buy an index future of October, 2018 at the offer price of Rs. 5080. The Fund will
be required to pay the initial margin as required by the exchanges.
The following is a hypothetical example of a typical trade in index future and the costs associated with
the trade.
Actual Purchase of
Particulars Index Future
Stocks
Index as on beginning October 2018 5070 5070
October 2018 Futures Price 5080 -
1.Carry Cost associated with Futures 10 (5080-5070)
2.Brokerage Cost @ 0.02% for Index Future 1.016 1.521
and 0.03% for Cash Markets (0.02% of 5080) (0.03% of 5070)
3.Securities Transaction Tax (STT)
NIL 1.2675
STT on purchase of index futures – NIL
(0% of 5080) (0.025% of 5070)
STT on purchase of stocks – 0.025%
Page 37 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFActual Purchase of
Particulars Index Future
Stocks
4.Gain on Surplus Funds (Assumed 6% returns 18.74
on 75% of the money left after paying margin (6%*(100% of 5070 – 25% NIL
of 25% of 5080)*30/365)
Spot Market Price at the expiry of October
5569 5569
Contract
5.Brokerage Cost on Sale @ 0.02% for Index 1.114 1.671
Future and 0.03% for Cash Markets (0.02% of 5569) (0.03% of 5569)
6.Securities Transaction Tax STT on sale of
1.114 1.392
index future – 0.025%
(0.025% of 5569) (0.025% of 5569)
STT on sale of stocks – 0.025%
Total Cost
-5.50 5.85
(1+2+3-4+5+6)
Please note that the above example is based on assumptions and is used only for illustrative purposes
(including an assumption that there will be a gain pursuant to investment in index futures). As can be
seen in the above example, the costs associated with the trade in futures are less than that associated with
the trade in actual stock. Thus, in the above example the futures trade seems to be more profitable than
the trade in actual stock. However, buying of the index future may not be beneficial as compared to
buying stocks if the execution and brokerage costs on purchase of index futures are high and the return
on surplus funds are low. The actual returns may vary based on actuals and depends on final guidelines /
procedures and trading mechanism as envisaged by stock exchanges and other regulatory authorities.
• Options
An option is a contract which provides the buyer of the option (also called the holder) the right, without
the obligation, to buy or sell a specified asset at an agreed price on or upto a particular date. For acquiring
this right, the buyer has to pay a premium to the seller. The seller on the other hand has the obligation to
buy or sell that specified asset at the agreed price. The premium is determined considering number of
factors such as the underlying asset's market price, the number of days to expiration, strike price of the
option, the volatility of the underlying asset and the risk less rate of return. The strike price, the expiration
date and the market lots are specified by the exchanges.
An option contract may be of two kinds, viz., a call option or a put option. An option that provides the
buyer the right to buy is a call option. The buyer of the call option (known as the holder of the option)
can call upon the seller of the option (known as writer of the option) and buy from him the underlying
asset at the agreed price at any time on or before the expiry date of the option. The seller of the option
has to fulfill the obligation on exercise of the option.
The right to sell is called a put option. Here, the buyer of the option can exercise his right to sell the
underlying asset to the seller of the option at the agreed price.
Options are of two types: European and American. In a European option, the holder of the option can
only exercise his right on the date of expiration. In an American option, he can exercise this right anytime
between the purchase date and the expiration date.
Example of options
Page 38 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFBuying a Call option: Assume that the Scheme buys a call option at the strike price of Rs. 5,000 and
pays a premium of Rs. 100. If the market price of the underlying stock on the date of expiry of the option
is Rs. 5,400 (i.e. more than Rs. 5,000 which is the strike price of an option), the Scheme will exercise the
option. However, it may not result into profit. The profit is made only in those circumstances when the
intrinsic value (5400 (spot price)-5000(strike price)) is greater than cost paid i.e. option premium (100).
If on the date of the expiry of the option, the market price of the underlying stock is Rs. 4,900, the Scheme
will not exercise the option and it shall lose the premium of Rs. 100.
Thus, in the above example, the loss for the Scheme, as the buyer of the option, is limited to the premium
paid by him while the gains are unlimited.
Writing a Call Option: Assume that the Scheme writes a call option at the strike price of Rs. 5,000 and
earns a premium of Rs. 100. If the market price of the underlying stock on the date of expiry increases to
Rs. 5,400 (i.e. more than Rs. 5,000) then the option is exercised. The Scheme earns the premium of Rs.
100/- but loses the difference between the market price and the exercise price i.e. Rs. 400/-. In case the
market price of the underlying stock decreases to Rs. 4,900, the Scheme gets to keep the premium of
Rs.100.
Buying a Put Option: Assume that the Scheme buys a put option at the strike price of Rs. 5,000 and
pays a premium of Rs. 100. If the market price of the underlying stock decreases to Rs. 4,850 (i.e. less
than strike price of 5000) the Scheme would be protected from the downside and would exercise the put
option. However, it may not result into profit. The profit is resulted only when the intrinsic value (5000
(strike price)– 4850(spot price)) is greater than the cost paid i.e. option premium of 100. Whereas if the
stock price moves up to say Rs. 5,150 the Scheme may let the option expire and forego the premium.
Writing a Put Option: Assume that the Scheme writes a put option at the strike price of Rs. 5,000 and
earns a premium of Rs. 100. If the market value of the underlying stock decreases to Rs. 4,850, the put
option will be exercised and the Scheme will earn the premium of Rs. 100 but looses the difference
between the exercise price and the market price which is Rs. 150. However if the market price of the
underlying stock is Rs. 5,150, the option-holder will not exercise the option. As a result of which the
option will expire and the Scheme will earn the premium income of Rs. 100.
A forward contract is a transaction in which the buyer and the seller agree upon the delivery of a specified
quality (if commodity) and quantity of underlying asset at a predetermined rate on a specified future date.
Please note that the above examples are based on assumptions and are used only for illustrative purposes.
Risks associated with investment strategy which may be followed by the fund managers for investment
in derivatives:
Execution of investment strategies depends upon the ability of the fund manager to identify such
opportunities which may not be available at all times. Identification and execution of the strategies to be
pursued by the fund manager involve uncertainty and decision of fund manager may not always be
profitable.
The Scheme may face execution risk, whereby the rates seen on the screen may not be the rate at which
the ultimate execution of the derivative transaction takes place.
Overview of Debt Markets in India
Page 39 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFIndian fixed income market, one of the largest and most developed in South Asia, is well integrated with
the global financial markets. Screen based order matching system developed by the Reserve Bank of
India (RBI) for trading in government securities, straight through settlement system for the same,
settlements guaranteed by the Clearing Corporation of India and innovative instruments like TREPS have
contributed in reducing the settlement risk and increasing the confidence level of the market participants.
The RBI reviews the monetary policy six times a year giving the guidance to the market on direction of
interest rate movement, liquidity and credit expansion. The central bank has been operating as an
independent authority, formulating the policies to maintain price stability and adequate liquidity. Bonds
are traded in dematerialized form. Credit rating agencies have been playing an important role in the
market and are an important source of information to manage the credit risk.
Government (Central and State) is the largest issuer of debt in the market. Public sector enterprises, quasi
government bodies and private sector companies are other issuers. Insurance companies, provident funds,
banks, mutual funds, financial institutions, corporates and FPIs are major investors in the market.
Government loans are available up to 40 years maturity. Variety of instruments available for investments
including plain vanilla bonds, floating rate bonds, money market instruments, structured obligations and
interest rate derivatives make it possible to manage the interest rate risk effectively.
Indicative levels of the instruments as on May 30, 2025 are as follows:
Instrument Maturity Tenure Yield Liquidity
TREPS / Repo Short Overnight 5.45 Very High
3 months CP* 6.51
CP / CD / T Bills Short High
3 months CD 6.14
1 Year CP* 6.95
1 Year CD 6.50
Central Government securities Low to High 10 years 6.29 Medium
Source: Bloomberg *Data is for NBFC.
INTRODUCTION TO EXCHANGE TRADED FUNDS
Exchange Traded Fund (ETF)
ETFs are innovative products that provide exposure to an index or a basket of securities or physical
gold that trade on the exchange like a single stock. ETFs have a number of advantages over traditional
open-ended Index Funds as they can be bought and sold on the exchange at prices that are usually
close to the actual intra-day NAV of the Scheme. ETFs are an innovation to traditional mutual funds
as ETFs provide Investors a fund that closely tracks the performance of an index / physical gold with
the ability to buy/sell on an intra-day basis. Unlike listed close ended funds, which trade at substantial
premiums or more frequently at discounts to NAV, ETFs are structured in a manner which allows to
create new Units and Redeem outstanding Units directly with the fund, thereby ensuring that ETFs
trade close to their actual NAVs.
ETFs are usually passively managed funds wherein subscription /redemption of units work on the
concept of exchange with underlying securities. In other words, Large Investors/institutions can
Page 40 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFPurchase Units by depositing the underlying Securities with the Fund/AMC and can Redeem by
receiving the underlying shares in exchange of Units. Units can also be bought and sold directly on
the exchange.
ETFs have all the benefits of indexing such as diversification, low cost and transparency. As ETFs are
listed on the exchange, costs of distribution are much lower and the reach is wider. These savings in
cost are passed on to the Investors in the form of lower costs. Furthermore, exchange traded mechanism
helps reduce minimal collection, disbursement and other processing charges.
The structure of ETFs is such that it protects long-term Investors from inflows and outflows of short-
term Investor. This is because the Fund does not bear extra transaction cost when buying/selling due to
frequent Subscriptions and Redemptions.
Tracking Error of ETFs is likely to be low as compared to a normal Index Fund. Due to the
creation/redemption of units through the in-kind mechanism the fund can keep lesser funds in cash.
Also, time lag between buying/selling units and the underlying shares is much lower.
ETFs are highly flexible and can be used as a tool for gaining instant exposure to the equity markets,
equitising cash or for arbitraging between the cash and futures market.
Benefits of ETFs
1. Can be easily bought / sold like any other stock on the exchange through terminals spread across
the country.
2. Can be bought/sold anytime during market hours at prices that are expected to be close to actual
NAV of the schemes. Thus, investor invests at real-time prices as opposed to end of day prices.
3. No separate form filling for buying / selling units. It is just a phone call to your broker or a click on
the net.
4. Ability to put limit orders.
5. Minimum investment for an ETF is one unit.
6. Protects long-term investors from the inflows and outflows of short-term investors.
7. Flexible as it can be used as a tool for gaining instant exposure to the respective equity/gold
markets, equitizing cash, hedging or for arbitraging between the cash and futures market.
8. Helps in increasing liquidity of underlying cash market.
9. Aids low cost arbitrage between futures and cash market.
10. An investor can get a consolidated view of his investments without adding too many different
account statements as the Units issued would be in demat form.
Uses of ETFs
1. Investors with a long-term horizon
2. Allows diversification of portfolio at one shot thereby reducing scrip specific risk at a low cost.
Gold ETFs reduce risk of holding physical gold.
3. FIIs, Institutions and Mutual Funds
4. Allows easy asset allocation, hedging and equitizing cash at a low cost.
5. Arbitrageurs
6. Low impact cost to carry out arbitrage between the cash and the futures market.
7. Investors with a shorter term horizon
8. Allows liquidity due to ability to trade during the day and expected to have quotes near NAV
Page 41 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFduring the course of trading day.
Risks of ETFs
1. Absence of Prior Active Market: Although the units of ETFs are listed on the Exchange for
trading, there can be no assurance that an active secondary market will develop or be maintained.
2. Lack of Market Liquidity: Trading in units of ETFs on the Exchange on which it is listed may be
halted because of market conditions or for reasons that, in the view of the concerned stock
exchange or market regulator, trading in the ETF units is inadvisable. In addition, trading in the
units of ETFs is subject to trading halts caused by extraordinary market volatility pursuant to
‘circuit filter’ rules. There can be no assurance that the requirements of the concerned stock
exchange necessary to maintain the listing of the units of ETFs will continue to be met or will
remain unchanged.
3. Units of Exchange Traded Funds May Trade at prices Other than NAV: Units of ETFs may
trade above or below their NAV. The NAV of units of ETFs may fluctuate with changes in the
market value of a Scheme’s holdings. The trading prices of units of ETF will fluctuate in
accordance with changes in their NAVs as well as market supply and demand. However, given
that ETFs can be created / redeemed in creation units, directly with the fund, large discounts or
premiums to the NAVs will not sustain due to arbitrage possibility available.
Comparison of ETFs v/s Open Ended Funds v/s Close Ended Funds:
Open Ended Closed Ended Fund Exchange Traded Fund
Fund
Fund Size Flexible Fixed Flexible
NAV Daily Daily Real time (indicative NAV)
Liquidity Fund itself Stock Market Stock Market / Fund itself
provider
Sale price At NAV plus Significant premium / Very close to actual NAV of
Load, if any discount to NAV Scheme
Availability Fund itself Through Exchange where Through Exchange where
listed listed / Fund itself.
portfolio Disclosed Disclosed monthly Daily
disclosure monthly
Intra-day Not possible Expensive Possible at low cost
trading
An illustration of the working of ETF is given below:
Page 42 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFSeller
Cash ETF Units
C
Buy/ Sell
Market Makers/ Large
a
Investors National Stock Exchange s
Market Making/
h
Arbitrage
Subscription / Cash ETF Units a
Redemption in kind (in C Cs
Creation Unit Size)
a ah
b
s s B
Mirae Asset Mutual Fund h h u
a a y
s s /
h h S
B Be
Procedure for creation of BSE 500 Dividend Leaders 50 ETF units in Creation Unit size:
u ul
y yl
The Fund/AMC allows cash/exchange of Portfolio Deposit for Purchase of Uni/t s of the Scheme in / C
Creation Unit size by Large Investors/Market Makers. S Sa
e es
The Fund/AMC allows cash/exchange of Portfolio Deposit for Purchase of Units of the Scheme in
l l h
Creation Unit size by Large Investors/Market Makers. l Cash l
C C
• Creation of Units in exchange of Portfolio Deposit: a a
s s
h h
The requisite Securities constituting the Portfolio Deposit have to be transferred to the Scheme’s
Cash Cash
Depository Participant account while the Cash Component has to be paid to the C ustodian/AMC. On
confirmation of the same by the Custodian/AMC, the AMC will create and transfer the equivalent
number of Units of the Scheme into the Investor’s Depository Participant account and pay/ recover the
Cash Component and transaction handling charges, if any.
• Creation of Units in Cash: Subscription of BSE 500 Dividend Leaders 50 ETF Units in Creation
Unit Size will be made by payment of requisite amount, as determined by the AMC equivalent to the
cost incurred towards the purchase of predefined basket of securities that represent the underlying index
(i.e. portfolio deposit), Cash Component and transaction handling charges, if any, only by means of
payment instruction of Real Time Gross Settlement (RTGS) / National Electronic Funds Transfer
(NEFT) or Funds Transfer Letter / Transfer Cheque of a bank where the Scheme has a collection
account.
• The Creation Unit will be subject to transaction handling charges incurred by the Fund/AMC. Such
transaction handling charges shall be recoverable from the transacting Authorized Participant or Large
Investor.
• The Portfolio Deposit and/or Cash Component for units of the Scheme may change from time to time
due to changes in the Underlying Index on account of corporate actions and changes to the index
constituents.
Page 43 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF• The investors are requested to note that the Units of the Scheme will be credited into the Investor’s
Depository Participant account only on receipt of Cash Component and transaction handling charges,
if any.
‘Creation Unit size’ is fixed number of units of the Scheme, which is exchanged for a basket of securities
underlying the designated index called the Portfolio Deposit and a Cash Component equal to the value
of 150,000 Units of the Scheme and/or subscribed in cash equal to the value of said predefined units of
the Scheme. Each Creation Unit size consists of 100,000 Units of BSE 500 Dividend Leaders 50 ETF.
Each unit of BSE 500 Dividend Leaders 50 will be approximately equal to the 1/100th value of the BSE
500 Dividend Leaders 50 Index. ‘Portfolio Deposit’ consists of pre-defined basket of securities that
represent the underlying index as announced by AMC from time to time.’
Procedure for Redemption in Creation Unit size
The requisite number of Units of the Scheme equivalent to the Creation Unit has to be transferred to
the Fund’s Depository Participant account and the Cash Component to be paid to the AMC/Custodian.
• On confirmation of the same by the AMC, the AMC will transfer the Portfolio Deposit to the Investor’s
Depository Participant account and pay/recover the Cash Component and transaction handling charges,
if any.
• The Fund allows cash Redemption of the Units of the Scheme in Creation Unit size by Large
Investors/Authorized Participant.
• Such Investors shall make Redemption request to the Fund/AMC whereupon the Fund/AMC will
arrange to sell underlying portfolio Securities on behalf of the Investor. Accordingly, the sale proceeds
of portfolio Securities, after adjusting the Cash Component and transaction handling charges will be
remitted to the Investor.
• Redemption proceeds will be sent to Market Makers/Large Investors within 10 Business Days of the
date of redemption subject to confirmation with the depository records of the Scheme’s DP account.
Note:
1. The Creation Unit size may be changed by the AMC at their discretion and the notice of the same
shall be published on AMC’s website.
2. Transaction handling charges include brokerage, Securities transaction tax, regulatory charges if any,
depository participant charges, uploading charges and such other charges that the mutual fund may have
to incur in the course of cash subscription/redemption or accepting the Portfolio Deposit or for giving
a portfolio of securities as consideration for a redemption request. Such transaction handling charges
shall be recoverable from the transacting Authorized Participant or Large Investor.
3. The Portfolio Deposit and / or Cash Component for BSE 500 Dividend Leaders 50 ETF may change
from time to time due to change in NAV and due to any other market factors.
4. The Fund may from time to time change the size of the Creation Unit in order to equate it with
marketable lots of the underlying securities.
Page 44 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFProcedure for Creation of Units along with example for creation and redemption of units in the
ETF
Each Creation Unit consists of 25,000 units XYZ ETF tracking XYZ Index. The Creation Unit is made
up of 2 components i.e. Portfolio Deposit and Cash Component. The Portfolio Deposit will be
determined by the Fund as per the weights of each security in the Underlying Index. The value of this
Portfolio Deposit will change due to change in prices during the day. The number of shares of each
security that constitute the Portfolio Deposit will remain constant unless there is any corporate action
in the Underlying Index or there is a rebalance in the Underlying Index or the fund manager re-align
the weights of the securities to reduce the tracking error.
The example of Creation Unit is given below for an hypothetical XYZ Index:
SECURITY Index Weight Quantity Price Value
Reliance Industries Ltd 15.67 384 1,704.10 654,374.40
HDFC Bank Ltd 13.41 523 1,065.85 557,439.55
Housing Development Finance 8.80 210 1,754.65 368,476.50
Corporation Ltd
Infosys Ltd 7.82 448 735.95 329,705.60
ICICI Bank Ltd 6.61 773 351.45 271,670.85
Tata Consultancy Services Ltd 6.35 127 2,082.15 264,433.05
Kotak Mahindra Bank Ltd 5.78 169 1,360.45 229,916.05
Hindustan Unilever Ltd 5.65 102 2,180.00 222,360.00
ITC Ltd 4.94 1,007 194.65 196,012.55
Bharti Airtel Ltd 3.90 285 559.85 159,557.25
Larsen & Toubro Ltd 3.35 149 943.65 140,603.85
Axis Bank Ltd 2.67 277 406.65 112,642.05
Asian Paints Ltd 2.25 56 1,687.45 94,497.20
Maruti Suzuki India Ltd 2.20 16 5,838.30 93,412.80
Bajaj Finance Ltd 2.18 31 2,831.00 87,761.00
State Bank of India 1.99 464 178.45 82,800.80
HCL Technologies Ltd 1.78 133 556.85 74,061.05
Nestle India Ltd 1.75 4 17,174.4 68,697.80
5
Sun Pharmaceutical Industries Limited 1.49 129 472.95 61,010.55
Mahindra & Mahindra Ltd 1.42 117 510.70 59,751.90
Total Value of Portfolio Deposit 100 4,129,184.8
0
Value of Portfolio Deposit 4,129,184.80
Value of Cash Component 20,815.20
Total Value of Creation Unit 4,150,000.00
Cash component arrived in the following manner:
Value of portfolio deposit (A) 4,129,184.80
NAV as on 30 June 2020 166.0000
Creation Unit 25,000.00
Page 45 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFValue of creation unit (B) 4,150,000.00
CASH COMPONENT (C = B-A) 20,815.20
*The above is just an example to illustrate the calculation of cash component. Cash Component (other
charges) will vary depending upon the actual charges incurred like Custodial Charges, stamp duty and
other incidental charges for creating units.
B. What are the investment restrictions?
SO-19
The following investment limitations and other restrictions, inter alia, as contained in the Trust Deed
and the Regulations apply to the Scheme:
• No mutual fund under all its schemes should own more than ten per cent of any company’s paid
up capital carrying voting rights.
• The scheme shall not invest more than 10 per cent of its NAV in the equity shares or equity related
instruments of any company. Provided that, the limit of 10 per cent shall not be applicable for
investments in case of index fund or exchange traded fund or sector or industry specific scheme.
• A mutual fund scheme shall not invest more than 10% of its NAV in debt instruments comprising
money market instruments and non-money market instruments issued by a single issuer which are
rated not below investment grade by a credit rating agency authorized to carry out such activity
under the Act. Such investment limit may be extended to 12% of the NAV of the scheme with the
prior approval of the Board of Trustees and the Board of directors of the asset management
company.
Provided that such limit shall not be applicable for investments in Government Securities, treasury
bills and TREPS. Provided further that investment within such limit can be made in mortgaged
backed securitised debts which are rated not below investment grade by a credit rating agency
registered with the SEBI.
Further, in accordance with Clause 12.8 of SEBI Master dated June 27, 2024, the Scheme shall
not invest more than:
a) 10% of its NAV in debt and money market securities rated AAA; or
b) 8% of its NAV in debt and money market securities rated AA; or
c) 6% of its NAV in debt and money market securities rated A and below issued by a single
Issuer.
The above investment limits may be extended by up to 2% of the NAV of the scheme with prior
approval of the Board of Trustees and Board of Directors of the AMC, subject to compliance with
the overall 12% limit specified above.
Considering the nature of the scheme, investments in such instruments will be permitted upto 5%
of its NAV.
• Debentures, irrespective of any residual maturity period (above or below one year), shall attract
the investment restrictions as applicable for debt instruments.
Page 46 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF• The Scheme may invest in another scheme under the same asset management company or any
other mutual fund without charging any fees, provided that aggregate inter-scheme investment
made by all schemes under the management or in schemes under the management of any other
asset management company shall not exceed 5% of the NAV of the mutual fund.
• Pending deployment of funds of a scheme in securities in terms of investment objectives of the
scheme a mutual fund can invest the funds of the scheme in short term deposits of scheduled
commercial banks. The investment in these deposits shall be in accordance with Clause 12.16.1.8
of SEBI Master Circular dated June 27, 2024.
• The mutual fund shall not borrow except to meet temporary liquidity needs of the mutual funds
for the purpose of repurchase, redemption of units or payment of interest or dividend to the
unitholders. Provided that the mutual fund shall not borrow more than 20 per cent of the net asset
of the scheme and the duration of such a borrowing shall not exceed a period of six months.
• The Scheme shall not invest in unlisted debt instruments including commercial papers (CPs), other
than (a) government securities, (b) other money market instruments and (c) derivative products
such as Interest Rate Swaps (IRS), Interest Rate Futures (IRF), etc.
However, the scheme may invest in unlisted Non-Convertible debentures (NCDs) not exceeding
10% of the debt portfolio of the scheme subject to the condition that such unlisted NCDs have a
simple structure (i.e. with fixed and uniform coupon, fixed maturity period, without any options,
fully paid up upfront, without any credit enhancements or structured obligations) and are rated and
secured with coupon payment frequency on monthly basis.
• Inter scheme transfers of investments from one scheme to another scheme in the same Mutual
SO-30
Fund shall be allowed only if such transfers are done at the prevailing market price for quoted
instruments on spot basis. Explanation - “Spot basis” shall have same meaning as specified by
stock exchange for spot transactions. The securities so transferred shall be in conformity with the
investment objective of the scheme to which such transfer has been made.
Pursuant to Clause 12.30 of SEBI Master Circular dated June 27, 2024, ISTs may be allowed in
the following scenarios:
i. for meeting liquidity requirement in a scheme in case of unanticipated redemption pressure
ii. for Duration/ Issuer/ Sector/ Group rebalancing
No IST of a security shall be done, if there is negative news or rumors in the mainstream media or
an alert is generated about the security, based on internal credit risk assessment. The Scheme shall
comply with the guidelines for inter-scheme transfers as specified under clause 12.30 of SEBI
Master Circular dated June 27, 2024.
• The Mutual Fund shall buy and sell securities on the basis of deliveries and shall in all cases of
purchases, take delivery of relevant securities and in all cases of sale, deliver the securities. The
scheme may engage in Securities lending and the borrowing which shall be within the framework
specified by SEBI.
• The Scheme shall get the securities purchased or transferred in the name of the mutual fund on
account of the concerned scheme, wherever investments are intended to be of long-term nature.
Page 47 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF• The Scheme shall not make any investment in: a) Any unlisted security of an associate or group
company of the Sponsor; or b) Any security issued by way of private placement by an associate
or group company of the sponsor; or c) The listed securities of group companies of the Sponsor
which is in excess of 25% of the net assets.
• The scheme shall not make any investment in any fund of funds scheme.
• All investments by a mutual fund scheme in equity shares and equity related instruments shall only
be made provided such securities are listed or to be listed.
• The Mutual Fund having an aggregate of securities which are worth Rs.10 crores or more, as on
the latest balance sheet date, shall subject to such instructions as may be issued from time to time
by SEBI, settle their transactions entered on or after January 15, 1998 only through dematerialized
securities. Further, all transactions in government securities shall be in dematerialized form.
Pursuant to Clause 12.16 of SEBI Master Circular dated June 27, 2024: -
• Total investment of the Scheme in Short term deposit(s) of all the Scheduled Commercial Banks
put together shall not exceed 15% of the net assets. However, this limit can be raised upto 20% of
the net assets with prior approval of the trustees. Further, investments in Short Term Deposits of
associate and sponsor scheduled commercial banks together shall not exceed 20% of total
deployment by the Mutual Fund in short term deposits.
• “Short Term” for parking of funds by Mutual Funds shall be treated as a period not exceeding 91
days
• The Scheme shall not invest more than 10% of the net assets in short term deposit(s), of any one
scheduled commercial bank including its subsidiaries.
• The Scheme shall not invest in short term deposit of a bank which has invested in that Scheme.
AMC shall also ensure that the bank in which a scheme has Short term deposit do not invest in the
said scheme until the scheme has Short term deposit with such bank.
• Asset Management Company (AMC) shall not be permitted to charge any investment management
and advisory fees for parking of funds in short term deposits of scheduled commercial banks.
• The investments in short term deposits of scheduled commercial banks will be reported to the
Trustees along with the reasons for the investment which, inter-alia, would include comparison
with the interest rates offered by other scheduled commercial banks. Further, AMC shall ensure
that the reasons for such investments are recorded in the manner prescribed in Clause 12.23 of
SEBI Master Circular dated June 27, 2024.
• The Scheme will comply with SEBI regulations and any other regulations applicable to the
investments of Funds from time to time. The Trustee may alter the above restrictions from time to
time to the extent that changes in the regulations may allow. All investment restrictions shall be
applicable at the time of making investment.
Page 48 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF• In accordance with clause 12.16.1.9 SEBI Master Circular dated June 27, 2024, the aforesaid limits
shall not be applicable to term deposits placed as margins for trading in cash and derivatives
market.
• Pursuant to Clause 3.4 of SEBI Master Circular dated June 27, 2024, the underlying index shall
comply with the below restrictions:
a) The index shall have a minimum of 10 stocks as its constituents.
b) For a sectoral/ thematic Index, no single stock shall have more than 35% weight in the index.
For other than sectoral/ thematic indices, no single stock shall have more than 25% weight in
the index.
c) The weightage of the top three constituents of the index, cumulatively shall not be more than
65% of the Index.
d) The individual constituent of the index shall have a trading frequency greater than or equal to
80% and an average impact cost of 1% or less over previous six months.
Investments Limitations and Restrictions in Derivatives
In accordance with clause 12.25 of SEBI Master Circular dated June 27, 2024, the following investment
restrictions shall apply with respect to investment in Derivatives:
Sr. Particulars
No.
1 The cumulative gross exposure through equity, debt and derivative positions will not exceed
100% of the net assets of the scheme. However, cash or cash equivalents with residual maturity
of less than 91 days shall be treated as not creating any exposure.
2 The Scheme shall not write options or purchase instruments with embedded written options.
3 The total exposure related to option premium paid shall not exceed 20% of the net assets of
the scheme.
4 Exposure due to hedging positions may not be included in the above-mentioned limits subject
to the following:
a. Hedging positions are the derivative positions that reduce possible losses on an existing
position in securities and till the existing position remains.
b. Hedging positions shall not be taken for existing derivative positions. Exposure due to such
positions shall be added and treated under gross cumulative exposure limits mentioned under
Point 1.
c. Any derivative instrument used to hedge shall have the same underlying security as the
existing position being hedged.
d. The quantity of underlying associated with the derivative position taken for hedging
purposes shall not exceed the quantity of the existing position against which hedge has been
taken.
5 • The scheme may enter into plain vanilla Interest Rate Swaps (IRS) for hedging purposes.
The value of the notional principal in such cases shall not exceed the value of respective
existing assets being hedged by the scheme.
Page 49 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFIn case of participation in IRS is through over the counter transactions, the counter party shall
be an entity recognized as a Market Maker by RBI and exposure to a single counterparty in
such transactions shall not exceed 10% of the net assets of the scheme. However, if mutual
funds are transacting in IRS through an electronic trading platform offered by the Clearing
Corporation of India Ltd. (CCIL) and CCIL is the central counterparty for such transactions
guaranteeing settlement, the single counterparty limit of 10% shall not be applicable.
6 Exposure due to derivative positions taken for hedging purposes in excess of the underlying
position against which the hedging position has been taken, shall be treated under gross
cumulative exposure limits mentioned under Point 1.
7 Each position taken in derivatives shall have an associated exposure as defined below.
Exposure is the maximum possible loss that may occur on a position. However, certain
derivative positions may theoretically have unlimited possible loss. Exposure in derivative
positions shall be computed as follows:
Position Exposure
Long Future Futures Price * Lot Size * Number of Contracts
Short Future Futures Price * Lot Size * Number of Contracts
Option bought Option Premium Paid * Lot Size * Number of Contracts
8 Derivatives transa ctions shall be disclosed in the half-yearly portfolio / annual report of the
schemes in line with requirements under SEBI Regulations.
In accordance with clause 7.5 of SEBI Master Circular dated June 27, 2024, the following conditions
shall apply to the Scheme’s participation in the derivatives market. Please note that the investment
restrictions applicable to the Scheme’s participation in the derivatives market will be as prescribed or
varied by SEBI or by the Trustees (subject to SEBI requirements) from time to time.
Position limit for the Fund in index options contracts
• The Fund’s position limit in all index options contracts on a particular underlying index shall be
Rs.500 Crores or 15% of the total open interest of the market in index options, whichever is higher,
per Stock Exchange.
• This limit would be applicable on open positions in all options contracts on a particular underlying
index.
Position limit for the Fund in index futures contracts
• The Fund’s position limit in all index futures contracts on a particular underlying index shall be
Rs.500 Crores or 15% of the total open interest of the market in index futures, whichever is higher,
per Stock Exchange.
• This limit would be applicable on open positions in all futures contracts on a particular underlying
index.
Additional position limit in index derivatives for hedging for the Fund
In addition to the position limits above, the Fund may take exposure in equity index derivatives subject
to the following limits:
• Short positions in index derivatives (short futures, short calls and long puts) shall not exceed (in
notional value) the Fund’s holding of stocks.
• Long positions in index derivatives (long futures, long calls and short puts) shall not exceed (in
notional value) the Fund’s holding of cash, government securities, T-Bills and similar instruments.
Position limit for the Fund for stock based derivative contracts
Page 50 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFThe combined futures and options position limit shall be 20% of the applicable Market Wide Position
Limit (MWPL).
Position limit for the Scheme
The position limit/disclosure requirements for the Scheme shall be as follows:
• For stock option and stock futures contracts, the gross open position across all derivative contracts
on a particular underlying stock of the Scheme shall not exceed the higher of:
1% of the free float market capitalization (in terms of number of shares)
OR
5% of the open interest in the derivative contracts on a particular underlying stock (in terms of number
of contracts (Shares)).
• For index based contracts, the Fund shall disclose the total open interest held by its scheme or all
schemes put together in a particular underlying index, if such open interest equals to or exceeds 15%
of the open interest of all derivative contracts on that underlying index.
• This position limits shall be applicable on the combined position in all derivative contracts on an
underlying stock at a stock exchange.
The Trustee may alter the above restrictions from time to time to the extent that changes in the
Regulations may allow and as deemed fit in the general interest of the Unit Holders.
SO-19 Apart from the investment restrictions prescribed under SEBI (MF) Regulations, the Fund does not
follow any internal norms vis-a-vis limiting exposure to a particular scrip or sector etc.
C. Fundamental Attributes
SO-59
Following are the Fundamental Attributes of the scheme, in terms of Clause 1.14 of SEBI Master
Circular for Mutual Funds dated June 27, 2024:
(i) Type of scheme
An open-ended scheme replicating/tracking BSE 500 Dividend Leaders 50 Total Return Index
Open ended – Exchange Traded Fund
(ii) Investment Objective
The investment objective of the scheme is to generate returns, before expenses, that are
commensurate with the performance of the BSE 500 Dividend Leaders 50 Index, subject to tracking
error. The Scheme does not guarantee or assure any returns. There is no assurance that the
investment objective of the scheme will be achieved.
• Main Objective - Growth
• Investment pattern
Page 51 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFAsset allocation:
Indicative allocation
T ypes of Instruments (% of total assets)
Minimum Maximum
Securities included in the BSE 500 Dividend Leaders 50 Index 95 100
Money market instruments including Tri Party REPO/ debt 0 5
securities, Instruments and/or units of debt/liquid schemes of
domestic Mutual Funds.
In the event of the asset allocation falling outside the limits specified in the asset allocation table, the
Fund Manager will rebalance the same within 7 days. However, at all times the portfolio will adhere to
the overall investment objectives of the Scheme. Any alteration in the investment pattern will be for
short-term defensive consideration as per Clause 1.14.1.2 of SEBI Master Circular dated June 27, 2024,
the intention being at all times to protect the interests of the Unit Holders.
(iii) Terms of Issue
• Listing:
The Units of the Scheme will be listed on the Capital Market Segment of the NSE and BSE.
The AMC engages Market Makers for creating liquidity for the Units of the Scheme on the Stock
Exchange(s) so that investors other than Market Makers and Large Investors are able to buy or redeem
Units on the Stock Exchange(s) using the services of a stock broker.
The Mutual Fund may at its sole discretion list the Units of the Scheme on any other recognized Stock
Exchange(s) at a later date.
The AMC/Trustee reserves the right to delist the Units of the Scheme from a particular stock exchange
provided the Units are listed on at least one stock exchange.
An investor can buy/sell Units on a continuous basis on the NSE and BSE on which the Units are listed
during the trading hours like any other publicly traded stock at prices which may be close to the NAV
of the Scheme. The price of the Units in the market will depend on demand and supply at that point of
time. There is no minimum investment, although Units are purchased in round lots of 1.
Redemption:
The Unit Holder has the option to request for Redemption either in amount in rupees or in number of
Units. The minimum redemption amount shall be ‘any amount’ or ‘any number of units’ as requested
by the investor at the time of redemption request.
Redemption Price:
The Redemption Price of the Units is the price at which a Unit Holder can redeem Units of a scheme.
It will be calculated as described below:
Redemption Price = Applicable NAV - (Applicable NAV x Exit Load*)
Page 52 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF* Exit Load, whatever is applicable, will be charged.
Redemption Price will be calculated for up to four decimal places for the Scheme.
For example, if the Applicable NAV of a Scheme is Rs.10.5550, and it has a 2% Exit Load, the
Redemption Price will be calculated as follows:
Redemption Price = 10.5550 - (10.5550 X 2.00%) i.e. 10.4550 - 0.2110 = 10.3440
If the Scheme has no Exit Load, the Redemption Price will be equal to the Applicable NAV.
The Securities Transaction Tax levied under the Income Tax Act, 1961, at the applicable rate on the
amount of redemption will be reduced from the amount of redemption.
To illustrate:
If a Redemption of 4,900 units is sought by the Unit Holder at a Redemption Price of Rs. 10.3440 (as
calculated above), the redemption amount is Rs. 50,685.60. Securities Transaction Tax (STT) for
instance is 0.001%. This will be further reduced by the STT of Re. 0.50 (i.e. Rs. 50,685.60 x 0.001%),
making the net redemption amount Rs. 50,685.10.
If a Redemption of Rs. 10,000 is sought by the Unit Holder at a Net Redemption Price of Rs. 10.3440
(as calculated above), which will give 966.744 Units; the effective redemption amount will be grossed
up to Rs. 10,204.08 (i.e. 10,000 ÷ (1-2%)) and 966.744 units (10,204.08 ÷ 10.555) will be redeemed.
This is to ensure that the Unit Holder receives the net amount of Rs. 10,000 as desired.
Investors may note that the Trustee has a right to modify the existing Load structure in any manner
subject to a maximum as prescribed under the Regulations and with prospective effect only.
Please refer section – LOAD STRUCTURE.
Applicable NAV for Redemption / Switch-Out / Systematic Transfer Plan:
In respect of valid Redemption applications accepted at a Designated Collection Centre up to 3 p.m. on
a Business Day, the NAV of such day will be applicable.
In respect of valid Redemption applications accepted at a Designated Collection Centre after 3 p.m.
on a Business Day, the NAV of the next Business Day will be applicable.
• Aggregate fees and expenses charged to the scheme
For detailed fees and expenses charged to the scheme please refer to section- I Part - III ‘C – Annual
Scheme Recurring Expenses’.
• Any safety net or guarantee provided
There is no assurance OR guarantee of returns.
In accordance with Regulation 18(15A) of the SEBI (MF) Regulations and Clause 1.14.1.4 of
SEBI Master Circular for Mutual Funds dated June 27, 2024, the Trustees shall ensure that no
Page 53 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFchange in the fundamental attributes of the Scheme(s) and the Plan(s) / Option(s) thereunder or
the trust or fee and expenses payable or any other change which would modify the Scheme(s)
and the Plan(s) / Option(s) thereunder and affect the interests of Unitholders is carried out unless:
• SEBI has reviewed and provided its comments on the proposal
• A written communication about the proposed change is sent to each Unitholder and an
advertisement is given in one English daily newspaper having nationwide circulation as well
as in a newspaper published in the language of the region where the Head Office of the
Mutual Fund is situated; and
• The Unitholders are given an option for a period of atleast 30 calendar days to exit at the
prevailing Net Asset Value without any exit load.
D. Index methodology
Index Objective and Highlights
The index measures the performance of companies in the BSE 500 index that have paid dividends
consistently over the past ten years.
Eligibility Factors
Index Universe: The index is derived from the constituents of the BSE 500 that have paid dividends
consistently over the past ten years.
Listing History: Stocks must have a listing history of at least 5 years.
Security Type: Only common stocks are eligible.
Constituent Selection
At each quarterly rebalancing, eligible companies must meet the following criteria:
1. Companies must have completed a listing history of at least 5 years as on the reference date.
2. The company should have declared dividend at least 80% of times in past 10 years or from the
date of listing, whichever is lower.
3. 3 Year Average Dividend Yield should not be in the bottom quartile within the eligible universe
Companies satisfying the criteria in Step A are then ranked based on their Normalized Z score. The top
30 companies are selected for direct inclusion. Existing constituents ranked 31 to 70 are selected in
order of highest rank until the target constituent count of 50 is reached. If after this step the target count
is not achieved, then non-constituents are added in order of highest rank until the target constituent
count is reached.
The following additional checks are also considered:
1. At least 85% of the securities in the portfolio should have given dividends in 2 out of 3 previous
years
2. At least 85% of the securities in the portfolio should have a dividend rate of at least 10%
If any of the above constraints are violated, the next eligible stock is selected for index inclusion based
on the rank derived in Step B giving preference to those meeting above requirement.
Page 54 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFConstituent Weightings
Index constituents are weighted by the product of float-adjusted market capitalization and Normalized
Z score, subject to an individual stock weight cap of 4%. Individual stock weight caps are applied
annually effective at the open of Monday following the third Friday of December. Constituents’ index
shares are calculated using closing prices on the Wednesday prior to the second Friday of the
rebalancing month as the reference price. Individual stock weight caps are also applied at each adhoc
rebalancing.
Rebalancing
The index is rebalanced and reconstituted quarterly, effective as of market open on the Monday
following the third Friday of March, June, September and December, respectively.
The weightage of the constituents of BSE 500 Dividend Leaders 50 Index along with impact cost as on
May 31, 2025:
SR. No. Security Name Weightage Impact
% Cost in %
1 HERO MOTOCORP LTD. 4.53% 0.02
2 HINDUSTAN PETROLEUM CORPORATIO LTD. 4.41% 0.03
3 BHARAT PETROLEUM CORPORATION LTD. 4.35% 0.03
4 TECH MAHINDRA LTD. 4.27% 0.03
5 GAIL (INDIA) LTD. 4.16% 0.03
6 INDIAN OIL CORPORATION LTD. 4.13% 0.02
7 HCL TECHNOLOGIES LTD. 4.00% 0.02
8 ITC LTD. 3.94% 0.02
9 POWER GRID CORPORATION OF INDIA LTD. 3.92% 0.03
10 TATA STEEL LTD. 3.92% 0.02
11 POWER FINANCE CORPORATION LTD. 3.81% 0.03
12 OIL AND NATURAL GAS CORPORATIO 3.78% 0.02
13 INFOSYS LTD. 3.75% 0.01
14 COAL INDIA LTD. 3.74% 0.03
15 NTPC LTD. 3.64% 0.03
16 REC LIMITED 3.59% 0.03
17 VEDANTA LIMITED 3.57% 0.02
18 NMDC LTD. 3.24% 0.04
19 HINDUSTAN ZINC LTD. 2.99% 0.04
20 PETRONET LNG LTD. 2.28% 0.04
21 OIL INDIA LTD. 2.18% 0.04
22 NHPC LTD. 2.07% 0.03
23 ORACLE FINANCIAL SERVICES SOFTWARE LTD. 1.76% 0.04
24 MPHASIS LTD. 1.67% 0.03
25 Redington Limited 1.54% 0.05
26 NATIONAL ALUMINIUM CO.LTD. 1.54% 0.03
27 CASTROL INDIA LTD. 1.17% 0.04
28 Housing &Urban Development CORPORATION LTD. 1.10% 0.05
Page 55 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF29 NIPPON LIFE INDIA ASSET MANAGEMENT
LIMITED 0.93% 0.04
30 CESC LTD. 0.91% 0.04
31 Manappuram Finance Ltd 0.88% 0.05
32 GLAXOSMITHKLINE PHARMACEUTICAL LTD. 0.75% 0.06
33 GREAT EASTERN SHIPPING CO.LTD. 0.72% 0.05
34 SANOFI INDIA LTD 0.61% 0.07
35 PIRAMAL ENTERPRISES LTD. 0.61% 0.04
36 PROCTER & GAMBLE HEALTH LIMITED 0.54% 0.1
37 Mahanagar Gas Limited 0.47% 0.05
38 BAYER CROPSCIENCE LTD. 0.46% 0.08
39 GUJARAT PIPAVAV PORT LTD. 0.46% 0.07
40 SJVN LTD 0.41% 0.05
41 SUN TV NETWORK LTD. 0.39% 0.06
42 NLC India Limited 0.37% 0.06
43 PCBL Chemical Limited 0.36% 0.05
44 ENGINEERS INDIA LTD. 0.36% 0.05
45 IRCON International Ltd 0.34% 0.04
46 RITES Limited 0.34% 0.06
47 GUJARAT NARMADA VALLEY FERTILISERS &
CHEMICALS LIMITED 0.34% 0.05
48 GUJARAT STATE FERTILIZERS & CHEMICALS
LTD. 0.29% 0.05
49 GUJARAT MINERAL DEVELOPMENT
CORPORATION LTD. 0.23% 0.06
50 RASHTRIYA CHEMICALS & FERTILIZERS LTD. 0.17% 0.05
For additional details, please refer to index methodology on:
https://www.asiaindex.co.in/Downloads/BSE_Indices_Methodology.pdf
E. Principles of incentive structure for market makers
The incentive structure shall be based on the performance of the Market Maker. It shall have recourse
to factors such as trading volumes, bid-ask spread in units of ETFs and such other information as may
be required to formalize performance-based incentive structure or a fixed monthly compensation at the
discretion of the AMC and is to be decided between the AMC and the Market Maker. The incentives,
if any, shall be charged to the respective scheme within the maximum permissible limit of TER. A
transparent incentive structure for the MMs shall be put in place, and the incentives shall, inter alia, be
linked to performance of the MMs in terms of generating liquidity in units of ETFs.
F. Other Scheme Specific Disclosures:
Listing and transfer of units The Units of the Scheme shall be listed on the Capital Market
Segment of the NSE and BSE.
The AMC engages Market Makers for creating liquidity for the
Units of the Scheme on the Stock Exchange(s) so that investors
other than Market Makers and Large Investors are able to buy or
Page 56 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFredeem Units on the Stock Exchange(s) using the services of a
stock broker.
The Mutual Fund may at its sole discretion list the Units of the
Scheme on any other recognized Stock Exchange(s) at a later date.
The AMC/Trustee reserves the right to delist the Units of the
Scheme from a particular stock exchange provided the Units are
listed on at least one stock exchange.
An investor can buy/sell Units on a continuous basis on the NSE
and BSE on which the Units are listed during the trading hours like
any other publicly traded stock at prices which may be close to the
NAV of the Scheme. The price of the Units in the market will
depend on demand and supply at that point of time. There is no
minimum investment, although Units are purchased in round lots
of 1.
Units held in Demat form are transferable (subject to lock-in
period, if any and subject to lien, if any marked on the units) in
accordance with the provisions of SEBI (Depositories and
Participants) Regulations, 2018, as may be amended from time to
time. Transfer can be made only in favor of transferees who are
capable of holding Units and having a Demat Account. The
delivery instructions for transfer of Units will have to be lodged
with the DP in requisite form as may be required from time to time
and transfer will be effected in accordance with such rules /
regulations as may be in force governing transfer of securities in
dematerialized mode. Further, for the procedure of release of lien,
the investors shall contact their respective Depository.
However, if a person becomes a holder of the Units consequent to
operation of law or upon enforcement of a pledge, the Mutual Fund
will, subject to production of satisfactory evidence, effect the
transfer, if the transferee is otherwise eligible to hold the Units.
Similarly, in cases of transfers taking place consequent to death,
insolvency etc., the transferee’s name will be recorded by the
Mutual Fund subject to production of satisfactory evidence.
Please refer SAI for details on transmission, nomination, lien,
pledge, duration of the Scheme and Mode of Holding.
Page 57 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFDematerialization of units The Units of the Scheme will be available only in dematerialized
(electronic) form. Investors intending to invest in Units of the
Scheme will be required to have a beneficiary account with a
Depository Participant (DP) of NSDL/ CDSL and will be required
to mention in the application form DP’s Name, DP ID No. and
SO-57 Beneficiary Account No. with the DP at the time of purchasing
(a), (b) Units directly from the fund in Creation Unit Size.
The Units of the Scheme will be issued, traded and settled
compulsorily in dematerialized (electronic) form.
Minimum Target amount The Scheme seeks to collect a minimum subscription amount of
Rs. 5 Crores under the Scheme during the NFO Period.
Dividend Policy (IDCW) Unit holders to note that the Trustee may still declare a IDCW
from time to time in accordance with the IDCW Policy set out
below.
IDCW Policy: The Trustee may declare IDCW to the Unit holders
under the Scheme subject to the availability of distributable surplus
and the actual distribution of IDCWs and the frequency of
distribution will be entirely at the discretion of the Trustee. Such
IDCW will be payable to the Unit holders whose names appear on
the register of Unit holders on the record date as fixed for the
Scheme. The IDCW declared will be paid net of tax deducted at
source, wherever applicable, to the Unit holders within 7 working
days from the record date. The amounts can be distributed out of
investors capital (Equalization Reserve), which is part of sale price
that represents realized gains. The Scheme will follow the
requirements stipulated in the listing agreement for declaration of
IDCW. There is no assurance or guarantee to the Unit holders as to
the rate of IDCW distribution nor that will the IDCW be paid
regularly. If the Fund declares IDCW, the NAV of the Scheme will
stand reduced by the amount of IDCW and tax deducted at source
(if applicable) paid. All the IDCW payments shall be in accordance
and compliance with Regulations, as applicable from time to time.
Allotment All Applicants whose monies towards purchase of Units have been
realised by the Fund will receive a full and firm allotment of Units,
provided also the applications are complete in all respects and are
found to be in order. For applicants applying through ‘Applications
Supported by Blocked Amount (ASBA)’, on allotment, the amount
will be unblocked in their respective bank accounts and account will
be debited only to the extent required to pay for allotment of Units
applied in the application form. The AMC shall allot Units within 5
business days from the date of closure of the NFO period.
Units will be allotted in whole figure. Offer for Sale of Units at
1/100th value of the BSE 500 Dividend Leaders 50 Index as on the
date of allotment for applications received during the New Fund
Offer (“NFO”) period and at approximately indicative NAV based
Page 58 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFprices (along with applicable charges and execution variations)
during the Ongoing Offer for applications directly received at
AMC. Balance amount will be refunded to the investor.
Example of issue of Unit during the NFO:
Example of Units allotted to the Investor (Amt. in Rs.)
Net amount invested by investor A 5,000
Allotment Price B 260
Units allotted rounded off to nearest C=A/B 19
lowest integer
Value of units allotted D=B*C 4940
Balance fractional units refunded to E=A-D 60
investor
The Trustee retains the sole and absolute discretion to reject any
application which is incomplete in any aspect.
Dematerialization
The Units of the Scheme will be available in dematerialized
(electronic) form. The investor intending to invest in Units of the
Scheme will be required to have a beneficiary account with a
SO-57
Depository Participant (DP) of the NSDL/CDSL and will be
(c)
required to mention in the DP’s Name, DP ID No. and Beneficiary
Account No. with the DP at the time of purchasing Units.
The Units of the Scheme will be issued, traded and settled
compulsorily in dematerialized (electronic) form.
The Units allotted will be credited to the DP account of the Unit
holder as per the details provided in the application form.
However, the Trustee / AMC reserves the right to change the
dematerialization/rematerialization process in accordance with the
procedural requirements laid down by the Depositories, viz. NSDL/
CDSL and/or in accordance with the provisions laid under the
Depositories Act, 1996 and the Regulations thereunder.
An account statement will be sent by ordinary post/courier/secured
encrypted electronic mail to each Unit Holder, stating the number
of Units purchased, not later than 5 business days from the close of
the NFO Period.
In case of specific request received from investors, Mutual Fund
shall provide the account statement to the investors within 5
SO-60
working days from the receipt of such request without any charges.
Allotment of Units and dispatch of Account Statements to FPIs will
be subject to RBI approval, if required.
Page 59 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFFor investors who have given demat account details in the
application form, the Units issued by the AMC shall be credited by
the Registrar to the investors’ beneficiary account with the DP as
per information provided in the application form and information of
allotment will be accordingly sent by the Registrar.
Refund If the Schemes fail to collect the minimum subscription amount of
Rs. 5 Crores, the Mutual Fund shall be liable to refund the money
to the applicants within 5 business days from the closure of the
NFO.
If application is rejected, full amount will be refunded within 5
business days from the closure of NFO. If refunded later than 5
business days, interest @15% p.a. for delayed period will be paid
and charged to the AMC.
Who can invest • Indian resident adult individuals, either singly or jointly (not
This is an indicative list and exceeding three);
investors shall consult their • Minor through parent / lawful guardian; (please see the note
financial advisor to ascertain below)
whether the scheme is suitable to • Companies, bodies corporate, public sector undertakings,
their risk profile. association of persons or bodies of individuals and societies
registered under the Societies Registration Act, 1860;
• Partnership Firms constituted under the Partnership Act, 1932;
• Limited Liability Partnerships (LLP);
• A Hindu Undivided Family (HUF) through its Karta;
• Banking Company as defined under the Banking Regulation
Act, 1949;
• Banks (including Co-operative Banks and Regional Rural
Banks) and Financial Institutions;
• Public Financial Institution as defined under the Companies
Act, 1956;
• Insurance Company registered with the Insurance Regulatory
and Development Authority (IRDA);
• Non-Resident Indians (NRIs) / Persons of Indian Origin (PIO)
on full repatriation basis or on non-repatriation basis;
• Foreign Portfolio Investors (FPI) (including overseas ETFs,
Fund of Funds) registered with SEBI on repatriation basis;
• Mutual Funds/ Alternative Investment Funds registered with
SEBI
• Army, Air Force, Navy and other para-military funds and
eligible institutions;
• Scientific and Industrial Research Organizations;
• Provident / Pension / Gratuity and such other Funds as and when
permitted to invest;
• International Multilateral Agencies approved by the
Government of India / RBI; and
• The Trustee, AMC or Sponsor or their associates (if eligible and
permitted under prevailing laws).
Page 60 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF• A Mutual Fund through its schemes if permitted by the
regulatory authorities.
• Special Purpose Vehicles (SPVs) approved by appropriate
authority (subject to RBI approval).
• Religious and Charitable Trusts, Wakfs or endowments of
private trusts (subject to receipt of necessary approvals as
required) and Private Trusts authorized to invest in mutual fund
schemes under their trust deeds;
• Qualified Foreign Investors subject to the conditions prescribed
by SEBI, RBI, Income Tax authorities and the AMC, from time
to time on repatriation basis.
• Such other individuals/institutions/body corporate etc., as may
be decided by the AMC from time to time, so long as wherever
applicable they are in conformity with SEBI Regulations/RBI,
etc.
Note: 1.
Minor Unit Holder on becoming major may inform the Registrar
about attaining majority and provide his specimen signature duly
authenticated by his banker as well as his details of bank account
and a certified true copy of the PAN card as mentioned under the
paragraph “Anti Money Laundering and Know Your Customer” to
enable the Registrar to update their records and allow him to operate
the Account in his own right.
Note 2. Applicants under Power of Attorney:
An applicant willing to transact through a power of attorney must
lodge the photocopy of the Power of Attorney (PoA) attested by a
Notary Public or the original PoA (which will be returned after
verification) within 30 Days of submitting the Application Form /
Transaction Slip at a Designated Collection Centre. Applications are
liable to be rejected if the power of attorney is not submitted within
the aforesaid period.
Who cannot invest It should be noted that the following entities cannot invest in the
scheme:
• Any individual who is a foreign national or any other entity that
is not an Indian resident under the Foreign Exchange
Management Act, 1999, except where registered with SEBI as
a FPI. However, there is no restriction on a foreign national from
acquiring Indian securities provided such foreign national meets
the residency tests as laid down by Foreign Exchange
Management Act, 1999.
• Overseas Corporate Bodies (OCBs) shall not be allowed to
invest in the Scheme. These would be firms and societies which
are held directly or indirectly but ultimately to the extent of at
least 60% by NRIs and trusts in which at least 60% of the
beneficial interest is similarly held irrevocably by such persons
(OCBs.)
Page 61 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF• Non-Resident Indians residing in the Financial Action Task
Force (FATF) Non-Compliant Countries and Territories
(NCCTs)
• “U.S. Person” under the U.S. Securities Act of 1933 and
corporations or other entities organized under the laws of U.S.
• Residents of Canada or any Canadian jurisdiction under the
applicable securities laws.
• The Fund reserves the right to include / exclude new / existing
categories of investors to invest in the Scheme from time to
time, subject to SEBI Regulations and other prevailing statutory
regulations, if any.
Subject to the Regulations, any application for subscription of Units
may be accepted or rejected if found incomplete or due to
unavailability of underlying securities, etc. For example, the Trustee
may reject any application for the Purchase of Units if the
application is invalid or incomplete or if, in its opinion, increasing
the size of any or all of the Scheme's Unit capital is not in the general
interest of the Unit Holders, or if the Trustee for any other reason
does not believe that it would be in the best interest of the Scheme
or its Unit Holders to accept such an application.
The AMC / Trustee may need to obtain from the investor
verification of identity or such other details relating to a subscription
for Units as may be required under any applicable law, which may
result in delay in processing the application.
How to apply and other details Application form and Key Information Memorandum may be
SO-35
obtained from Official Points of Acceptance (OPAs) / Investor
Service Centres (ISCs) of the AMC or RTA or Distributors or can
be downloaded from our website www.miraeassetmf.co.in.
The list of the OPA / ISC are available on our website as well.
Investors intending to trade in Units of the Schemes, through the
exchange platform will be required to provide demat account details
in the application form.
Please refer to the SAI and application form for the instructions.
Where can you submit the filled- Registrar & Transfer Agent:
up applications. KFin Technologies Limited
Registered Office:
Karvy Selenium, Tower B, Plot Number 31 & 32, Financial District,
Gachibowli, Hyderabad - 500 034.
Contact Persons:
Mr. Babu PV
Tel No. : 040 3321 5237
Page 62 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFEmail Id : babu.pv@kfintech.com
Mr. 'P M Parameswaran'
Tel No. : 040 3321 5396
Email Id : parameswaran.p@kfintech.com
Website address: https://mfs.kfintech.com/mfs/
Branches:
Applications can be submitted at collecting bankers and Investor
Service Centers of Mirae Asset Investment Managers (India) Pvt.
Ltd and KFin Technologies Limited. Details of which are furnished
on back cover page of this document.
Please refer the AMC website at the following link for the list of
official points of acceptance, collecting banker details etc.:
https://www.miraeassetmf.co.in/downloads/statutory-
disclosure/other-disclosure
Website of the AMC:
Investor can also subscribe to the Units of the Scheme through the
website of the AMC i.e. https://www.miraeassetmf.co.in/investor-
center/investor-services
Stock Exchanges:
A Unit holder may purchase Units of the Scheme through the Stock
Exchange infrastructure. Investors can hold units only in
dematerialized form.
MF Utility (MFU):
A unitholder may purchase units of the Plan(s) under the Scheme
through MFU.
All financial and non-financial transactions pertaining to Schemes
of Mirae Asset Mutual Fund can also be submitted through MFU
either electronically or physically through the authorized Points of
Service (“POS”) of MFUI. The list of POS of MFUI is published on
the website of MFUI at www.mfuindia.com and may be updated
from time to time.
SO-61 Investors to note that it is mandatory to mention the bank account
numbers in the applications/requests for redemption.
The policy regarding reissue of All units can be reissued without any limit by the Scheme.
repurchased units, including the
maximum extent, the manner of
reissue, the entity (the scheme or
the AMC) involved in the same.
Page 63 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFRestrictions, if any, on the right to As the units of the Scheme are mandatorily to be held in demat
freely retain or dispose of units mode, the same are freely transferable. Further, the unit holders will
being offered. have to approach their DP for transfer, transmission, pledge related
requests etc. which shall be done by the DP in accordance with the
procedural requirements laid down by the Depositories, viz. NSDL/
CDSL and/or in accordance with the provisions laid under the
Depositories Act, 1996 and the Regulations thereunder.
RIGHT TO RESTRICT REDEMPTION AND / OR SUSPEND
REDEMPTION OF THE UNITS:
The Fund at its sole discretion reserves the right to restrict
Redemption (including switchout) of the Units (including Plan
/Option) of the Scheme of the Fund upon occurrence of the below
mentioned events for a period not exceeding ten (10) working days
in any ninety (90) days period subject to approval of the Board of
Directors of the AMC and the Trustee. The restriction on
Redemption (including switch-out) shall be applicable where the
Redemption (including switch-out) request is for a value above Rs.
2,00,000/- (Rupees Two Lakhs). Further, no restriction shall be
applicable to the Redemption / switch-out request upto Rs.
2,00,000/- (Rupees Two Lakhs). It is further clarified that, in case
of redemption request beyond Rs. 2,00,000/- (Rupees Two Lakhs),
no restriction shall be applicable on first Rs. 2,00,000/- (Rupees
Two Lakhs).
The Trustee / AMC reserves the right to restrict Redemption or
suspend Redemption of the Units in the Scheme of the Fund on
account of circumstances leading to a systemic crisis or event(s) that
severely constrict market liquidity or the efficient functioning of the
markets. A list of such circumstances under which the restriction on
Redemption or suspension of Redemption of the Units in the
Scheme of the Fund may be imposed are as follows:
1. Liquidity issues- when market at large becomes illiquid affecting
almost all securities rather than any issuer specific security; or
2. Market failures / Exchange closures; or
3. Operational issues; or
4. If so directed by SEBI.
It is clarified that since the occurrence of the abovementioned
eventualities have the ability to impact the overall market and
liquidity situation, the same may result in exceptionally large
number of Redemption requests being made and in such a situation
the indicative timelines (i.e. within 3-4 Business Days) mentioned
by the Fund in the scheme offering documents, for processing of
requests for Redemption may not be applicable.
Cut off timing for subscriptions/ In case of Purchase / Redemption directly with Mutual Fund (By
redemptions/ switches Market Makers and Large Investors):
DIRECTLY FROM THE FUND
Page 64 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFThis is the time before which Direct transaction with AMCs shall be facilitated for investors only
your application (complete in all for transactions above a specified threshold. In this regard, to begin
respects) should reach the with any order placed for redemption or subscription directly with
official points of acceptance. the AMC must be of greater than INR 25 Cr. The aforesaid threshold
shall not be applicable for Market Makers.
All direct transactions in units of ETFs by Market Makers or other
eligible investors (as mentioned above) with AMCs shall be at intra-
day NAV based on the actual execution price of the underlying
portfolio.
The requirement of “cut-off” timing shall not be applicable for direct
transaction with AMCs in ETFs by Market Makers and other
eligible investors.
For Redemption of units directly with the Mutual Fund (other
than Market Makers and Large Investors):
Investors can directly approach the AMC for redemption of units of
ETF, for transaction of upto INR 25 Cr. without any exit load, in
case of the following scenarios:
i. Traded price (closing price) of the ETF units is at discount of
more than 1% to the day end NAV for 7 continuous trading days, or
ii. No quotes for such ETFs are available on stock exchange(s) for
3 consecutive trading days, or
iii. Total bid size on the exchange is less than half of creation units
size daily, averaged over a period of 7 consecutive trading days.
In case of the above scenarios, applications received from investors
for redemption up to 3.00 p.m. on any trading day, shall be processed
by the AMC at the closing NAV of the day.
Such instances shall be tracked by the AMC on an ongoing basis and
in case any of the above mentioned scenario arises, the same shall
be disclosed on the website of the Mutual Fund.
Settlement of Purchase/Sale of Units of the Scheme on NSE/ BSE
Buying/Selling of Units of the Scheme on NSE/ BSE is just like
buying/selling any other normal listed security. If an investor has
bought Units, an investor has to pay the purchase amount to the
broker/sub-broker such that the amount paid is realised before the
funds pay-in day of the settlement cycle on the Stock Exchange(s).
If an investor has sold Units, an investor has to deliver the Units to
the broker/sub-broker before the securities pay- in day of the
settlement cycle on the Stock Exchange(s). The Units (in the case of
Units bought) and the funds (in the case of Units sold) are paid out
to the broker on the pay-out day of the settlement cycle on the Stock
Exchange(s). The Stock Exchange(s) regulations stipulate that the
trading member should pay the money or Units to the investor
within 24 hours of the pay-out.
Page 65 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFIf an investor has bought Units, he should give standing instructions
for ‘Delivery-In’ to his /her/its DP for accepting Units in his/her/its
beneficiary account. An investor should give the details of his/her
beneficiary account and the DP-ID of his/her/its DP to his/ her/its
trading member. The trading member will transfer the Units directly
to his/her/ its beneficiary account on receipt of the same from
NSE’s/ BSE’s Clearing Corporation.
An investor who has sold Units should instruct his/her/its
Depository Participant (DP) to give ‘Delivery Out’ instructions to
transfer the Units from his/her/its beneficiary account to the Pool
Account of his/her/its trading member through whom he/she/it have
sold the Units. The details of the Pool A/C (CM-BP-ID) of his/her
trading member to which the Units are to be transferred, Unit
quantity etc. should be mentioned in the Delivery Out instructions
given by him/her to the DP. The instructions should be given well
before the prescribed securities pay-in day. SEBI has advised that
the Delivery Out instructions should be given at least 24 hours prior
to the cut-off time for the prescribed securities pay-in to avoid any
rejection of instructions due to data entry errors, network problems,
etc.
Minimum amount for ON THE EXCHANGE
purchase/redemption/switches
Investors can subscribe (buy) and redeem (sell) Units on a
continuous basis on the NSE/ BSE on which the Units are listed.
Subscriptions made through Stock Exchanges will be made by
specifying the number of Units to be subscribed and not the amount
to be invested. On the Stock Exchange(s), the Units of the scheme
can be purchased/sold in minimum lot of 1 (one) Unit and in
multiples thereof.
DIRECTLY FROM THE FUND
The Scheme offers for subscriptions/redemptions only for Market
Makers in ‘Creation Unit Size’ on all Business Days at a price
determined on the basis of approximately indicative NAV based
prices (along with applicable charges and execution variations)
during the Ongoing Offer for applications directly received at AMC.
Large investors can subscribe/redeem directly with the AMC for an
amount greater than Rs. 25 crores. Additionally, the difference in
the value of portfolio and cost of purchase/sale of Portfolio Deposit
on the Exchange for creation/redemption of scheme Units including
the Cash Component and transaction handling charges, if any, will
have to be borne by the Market Makers /Large Investor.
The Fund creates/redeems Units of Scheme in large size known as
“Creation Unit Size”. Each “Creation Unit” consists of 1,00,000
Units of ETF. The value of the “Creation Unit” is the “Portfolio
Deposit” and a “Cash Component” which will be exchanged for
Page 66 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETF1,00,000 Units of Scheme and/or subscribed in cash equal to the
value of said predefined units of the Scheme.
The Portfolio Deposit and Cash Component for the Scheme may
change from time to time due to change in NAV.
The subscription/redemption of Units of Scheme ETF in Creation
Unit Size will be allowed both by means of exchange of Portfolio
Deposit and by Cash (i.e. payments shall be made only by means of
payment instruction of Real Time Gross Settlement (RTGS) /
National Electronic Funds Transfer (NEFT) or Funds Transfer
Letter/ Transfer Cheque of a bank where the Scheme has a
collection account).
The Fund may from time to time change the size of the Creation
Unit in order to equate it with marketable lots of the underlying
instruments.
Accounts Statements The AMC shall send an allotment confirmation specifying the units
allotted by way of email and/or SMS within 5 working days of
receipt of valid application/transaction to the Unit holders
registered e-mail address and/ or mobile number (whether units are
held in demat mode or in account statement form).
A Consolidated Account Statement (CAS) detailing all the
transactions across all mutual funds (including transaction charges
paid to the distributor) and holding at the end of the month shall be
sent to the Unit holders in whose folio(s) transaction(s) have taken
place during the month by email on or before 12th of the
succeeding month who have opted for e-CAS and on or before 15th
day of the succeeding month to investors who have opted for
delivery via physical mode.
Half-yearly CAS shall be issued at the end of every six months (i.e.
September/ March) on or before 18th day of succeeding month who
have opted for e-CAS and on or before 21st day of the succeeding
month to investors who have opted for delivery via physical mode,
to all investors providing the prescribed details across all schemes
of mutual funds and securities held in dematerialized form across
demat accounts, if applicable For further details, refer SAI.
Dividend/ IDCW The IDCW payments shall be initiated to the unitholders within 7
working days from the record date in compliance to the Clause 11.4
of the SEBI Master Circular dated June 27, 2024. In the event of
failure of IDCW payments within 7 working days, the AMC shall
pay an interest @ 15 per cent per annum of the relevant IDCW
amount to the applicable Unit holders. Interest for the delayed
payment of IDCW shall be calculated from the record date.
Page 67 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFRedemption The redemption or repurchase proceeds shall be dispatched to the
unitholders within three working days from the date of redemption
or repurchase.
For list of exceptional circumstances refer para 14.1.3 of SEBI
Master Circular for Mutual Funds dated June 27, 2024.
Non-Resident Investors
For NRIs, Redemption proceeds will be remitted depending upon
the source of investment as follows:
(i) Repatriation basis
When Units have been purchased through remittance in foreign
exchange from abroad or by cheque / draft issued from proceeds of
the Unit Holder's FCNR deposit or from funds held in the Unit
Holder's Non-Resident (External) account kept in India, the
proceeds can also be sent to his Indian address for crediting to his
NRE/FCNR/non-resident (Ordinary) account, if desired by the Unit
Holder.
(ii) Non-Repatriation basis
When Units have been purchased from funds held in the Unit
Holder's non-resident (Ordinary) account, the proceeds will be sent
to the Unit Holder's Indian address for crediting to the Unit Holder's
non-resident (Ordinary) account.
For FPIs, the designated branch of the authorized dealer may allow
remittance of net sale / maturity proceeds (after payment of taxes)
or credit the amount to the Foreign Currency account or Non-
resident Rupee account of the FPI maintained in accordance with
the approval granted to it by the RBI. The Fund will not be liable for
any delays or for any loss on account of any exchange fluctuations,
while converting the rupee amount in foreign exchange in the case
of transactions with NRIs/FPIs. The Fund may make other
arrangements for effecting payment of redemption proceeds in
future.
The normal processing time may not be applicable in situations
where necessary details are not provided by investors/Unit holders.
The AMC will not be responsible for any loss arising out of
fraudulent encashment of cheques and/or any delay/loss in transit.
Bank Mandate It is mandatory for every applicant to provide the name of the bank,
branch, address, account type and number as per SEBI requirements
and any Application Form without these details will be treated as
incomplete. Such incomplete applications will be rejected. The
Registrar / AMC may ask the investor to provide a blank cancelled
cheque or its photocopy for the purpose of verifying the bank
account number.
Page 68 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFDelay in payment of redemption / The Asset Management Company shall be liable to pay interest to
repurchase proceeds/dividend the unitholders at rate as specified vide clause 14.2 of SEBI Master
Circular for Mutual Funds dated June 27, 2024 by SEBI for the
period of such delay
Unclaimed Redemption and As per the Clause 14.3 of SEBI Master Circular dated June 27,
SO-52
Income 2024, the unclaimed Redemption and dividend amounts shall be
Distribution cum Capital deployed by the Fund in call money market or money market
Withdrawal instruments and in a separate plan of Liquid scheme / Money Market
Amount Mutual Fund scheme floated by Mutual Funds specifically for
deployment of the unclaimed amounts. The investment management
fee charged by the AMC for managing such unclaimed amounts
shall not exceed 50 basis points. The AMCs shall not be permitted
to charge any exit load in this plan.
Provided that such schemes where the unclaimed redemption and
IDCW amounts are deployed shall be only those Overnight scheme/
Liquid scheme / Money Market Mutual Fund schemes which are
placed in A-1 cell (Relatively Low Interest Rate Risk and Relatively
Low Credit Risk) of Potential Risk Class matrix.
The investors who claim these amounts during a period of three
years from the due date shall be paid at the prevailing NAV. After a
period of three years, this amount can be transferred to a pool
account and the investors can claim the said amounts at the NAV
prevailing at the end of the third year. In terms of the circular, the
onus is on the AMC to make a continuous effort to remind investors
through letters to take their unclaimed amounts.
As per SEBI Letter dated January 22, 2025, unclaimed redemption
and dividend amounts are to be transferred by the Asset
Management Company (AMC) to the Unclaimed Dividend and
Redemption Scheme (UDRS) after a period of 90 days and no later
than 105 days from the date of issuance of the instruments. The
AMC shall maintain separate schemes or plans for unclaimed
IDCW and redemption amounts pending for less than three years
and for more than three years. Upon completion of the initial three-
year period, such units shall be transferred to UDRS within 10
business days of the subsequent month. Furthermore, income
accrued on these unclaimed amounts beyond three years will be
transferred on a monthly basis (on or before the 10th calendar day
of the following month) to the Investor Education and Protection
Fund as specified by SEBI.
The website of Mirae Asset Mutual Fund also provides information
on the process of claiming the unclaimed amount and the necessary
forms / documents required for the same.
The details of such unclaimed amounts are also disclosed in the
annual report sent to the Unit Holders.
Page 69 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFImportant Note: All applicants must provide a bank name, bank
account number, branch address, and account type in the
Application Form.
Disclosure w.r.t investment by • Payment for investment by any mode shall be accepted from the
SO-37
minors bank account of the minor, parent or legal guardian of the minor,
or from a joint account of the minor with parent or legal guardian.
• Irrespective of the source of payment for subscription, all
redemption proceeds shall be credited only in the verified account
of the minor i.e. the account the minor may hold with the parent/
legal guardian after completing all KYC formalities.
• The AMC will send an intimation to Unit holders advising the
minor (on attaining majority) to submit an application form along
with prescribed documents to change the status of the account
from ‘minor’ to ‘major’.
• All transactions / standing instructions / systematic transactions
etc. will be suspended i.e. the Folio will be frozen for operation
by the guardian from the date of beneficiary child completing 18
years of age, till the status of the minor is changed to major. Upon
the minor attaining the status of major, the minor in whose name
the investment was made, shall be required to provide all the KYC
details, updated bank account details including cancelled original
cheque leaf of the new bank account.
• No investments (lumpsum/SIP/ switch in/ STP in etc.) in the
scheme would be allowed once the minor attains majority i.e. 18
years of age.
Please refer SAI for details on Transmission of Units.
Investments in Scheme by AMC, Subject to the Regulations, the AMC and investment companies
Sponsor & Associates managed by the Sponsor(s), their associate companies and
subsidiaries may invest either directly or indirectly, in the Scheme
during the NFO and/or on ongoing basis. However, the AMC shall
not charge any investment management fee on such investment in
the Scheme, in accordance with sub-regulation 3 of Regulation 24
of the Regulations and shall charge fees on such amounts in future
only if the SEBI Regulations so permit. The associates, the Sponsor,
subsidiaries of the Sponsor and/or the AMC may acquire a
substantial portion of the Scheme’s units and collectively constitute
a major investment in the Schemes. The AMC reserves the right to
invest its own funds in the Scheme as may be decided by the AMC
from time to time and required by applicable regulations and also in
accordance with Clause 6.11 of SEBI Master Circular dated June
27, 2024 regarding minimum number of investors in the Scheme.
In terms of SEBI notification dated August 5, 2021 and as per
Regulation 25, sub-regulation 16A of SEBI (Mutual Funds)
Regulations, the asset management company shall invest such
amounts in such schemes of the mutual fund, based on the risks
associated with the schemes, as may be specified by the Board from
time to time.
Page 70 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFIII. Other Details
A. Periodic Disclosures
Half yearly Disclosures: Financial Results
The AMC/Mutual Fund shall within one month from the close of each half year, that is on March
31st and on September 30th, host a soft copy of its unaudited financial results on their website
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/financials. The half-yearly unaudited
financial results shall contain details as specified in Twelfth Schedule of the SEBI (Mutual Funds)
Regulations, 1996 and such other details as are necessary for the purpose of providing a true and fair
view of the operations of Mirae Asset Mutual Fund.
The AMC/Mutual Fund shall publish an advertisement disclosing the hosting of unaudited financial
results on their website www.miraeassetmf.co.in in at least one English daily newspaper having
nationwide circulation and in a newspaper having wide circulation published in the language of the
region where the Head Office of the Mutual Fund is situated.
The mutual fund shall publish an advertisement in the all India edition of at least two daily newspapers,
one each in English and Hindi, disclosing the hosting of the half-yearly statement of the Scheme
portfolio on its website and on the website of Association of Mutual Funds in India (AMFI). The AMC
will provide a physical copy of the statement of its Scheme portfolio, without charging any cost, on
specific request received from a unitholder.
Annual Report
Pursuant to Regulation 56 of SEBI (Mutual Funds) Regulations, 1996 read with Clause 5.4 of SEBI
Master Circular dated June 27, 2024, the scheme wise annual report or abridged summary thereof will
be hosted on the website of the Mirae Asset Mutual Fund viz.
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/financials and on the website of
AMFI, not later than four months after the close of each financial year (31st March). The AMCs shall
display the link prominently on the website of the Mirae Asset Mutual Fund viz.
https://miraeassetmf.co.in and make the physical copies available to the unitholders, at their registered
offices at all times. Unit holders whose e-mail addresses are not registered will have to specifically
‘opt in’ to receive physical copy of scheme wise annual report or abridged summary thereof. The unit
holders may request for a physical copy of scheme annual reports at a price and the text of the relevant
scheme by writing to the Mirae Asset Investment Managers (India) Pvt Ltd. / Investor Service Centre
/ Registrar & Transfer Agents. The Mutual Fund / AMC shall provide a physical copy of abridged
report of the annual report, without charging any cost, on specific request received from a unit holder.
An advertisement shall be published every year disclosing the hosting of the scheme wise annual report
on website of Mirae Asset Mutual Fund and on the website of AMFI and the modes such as SMS,
telephone, email or written request (letter) through which a unitholder can submit a request for a
physical or electronic copy of the scheme wise annual report or abridged summary thereof. Such
advertisement shall be published in the all India edition of at least two daily newspapers, one each in
English and Hindi.
Page 71 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFMonthly/Half Yearly Portfolio Disclosures:
The Mutual Fund/ AMC will disclose portfolio (along with ISIN) of the Scheme in the prescribed
format, as on the last day of the month / half-year i.e. March 31 and September 30, on its website viz.
https://www.miraeassetmf.co.in/downloads/portfolio and on the website of Association of Mutual
Funds in India (AMFI) viz. www.amfiindia.com within 10 days from the close of each month/ half
year respectively. In case of unitholders whose e-mail addresses are registered, the Mutual Fund/ AMC
will send via email both the monthly and half yearly statement of scheme portfolio within 10 days from
the close of each month/ half year respectively. Mutual Fund / AMC will publish an advertisement
every half year in the all India edition of at least two daily newspapers, one each in English and Hindi,
disclosing the hosting of the half-yearly statement of the Scheme portfolio on its website and on the
website of Association of Mutual Funds in India (AMFI). Mutual Fund / AMC will provide a physical
copy of the statement of its Scheme portfolio, without charging any cost, on specific request received
from a unitholder.
Monthly Disclosures
The AMC shall disclose the following on monthly basis on its website on
https://www.miraeassetmf.co.in/downloads/portfolio:
• Name and exposure to top 7 issuers and stocks respectively as a percentage of NAV of the scheme
• Name and exposure to top 7 groups as a percentage of NAV of the scheme.
• Name and exposure to top 4 sectors as a percentage of NAV of the scheme.
Change in constituents of the index, if any, shall be disclosed on the AMC website on the day of change.
Monthly Average Asset under Management (Monthly AAUM) Disclosure
The Mutual Fund shall disclose the Monthly AAUM under different categories Schemes as specified
by SEBI in the prescribed format on a monthly basis on its website viz.
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-disclosure and forward to AMFI
within 7 working days from the end of the month.
Scheme Summary Document
SO-38
The AMC has provided on its website a standalone scheme document for all the Schemes which
contains all the details of the Scheme viz. Scheme features, Fund Manager details, investment details,
investment objective, expense ratios, portfolio details, etc. Scheme summary document is uploaded on
the websites of AMC viz. https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-
disclosure, AMFI and stock exchanges in 3 data formats i.e. PDF, Spreadsheet and a machine readable
format (either JSON or XML). The document shall be updated by the AMCs on a monthly basis or on
changes in any of the specified fields, whichever is earlier.
Disclosures with respect to Tracking Error and Tracking Difference
SO-39
Tracking Error (TE): The AMC shall disclose tracking error based on past one year rolling data, on a
daily basis, on the website of AMC on ETF Mutual Fund: Invest in Exchange Traded Funds Online |
Mirae Asset (miraeassetmf.co.in) and AMFI.
Page 72 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFTracking Difference (TD): Tracking difference i.e. the annualized difference of daily returns between
the index and the NAV of the scheme shall be disclosed on the website of the AMC on ETF Mutual
Fund: Invest in Exchange Traded Funds Online | Mirae Asset (miraeassetmf.co.in) and AMFI, on a
monthly basis, for tenures 1 year, 3 year, 5 year, 10 year and since the date of allotment of units
SO-38 Product Labelling and Risk-o-meter:
The Risk-o-meter shall have following six levels of risk:
1. Low Risk
2. Low to Moderate Risk
3. Moderate Risk
4. Moderately High Risk
5. High Risk and
6. Very High Risk
The evaluation of risk levels of a scheme shall be done in accordance with clause 17.4 of SEBI Master
Circular dated June 27, 2024.
Any change in risk-o-meter shall be communicated by way of Notice cum Addendum and by way of
an e-mail or SMS to unitholders. The risk-o-meter shall be evaluated on a monthly basis and the risk-
o-meter along with portfolio disclosure shall be disclosed on the AMC website viz.
https://www.miraeassetmf.co.in/downloads/portfolio as well as AMFI website within 10 days from the
close of each month.
The AMC shall disclose the risk level of schemes as on March 31 of every year, along with number of
times the risk level has changed over the year, on its website viz.
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-disclosure and AMFI website.
Further, in accordance with clause 5.16 of SEBI Master Circular dated June 27, 2024, the AMC shall
disclose:
a. risk-o-meter of the scheme wherever the performance of the scheme is disclosed;
b. risk-o-meter of the scheme and benchmark wherever the performance of the scheme vis-à-vis that
of the benchmark is disclosed.
c. scheme risk-o-meter, name of benchmark and risk-o-meter of benchmark while disclosing portfolio
of the scheme.
The Product Labelling assigned during the NFO is based on internal assessment of the scheme
characteristics or model portfolio and the same may vary post NFO when the actual investments are
made.
Indicative Net Asset Value (iNAV)
NAV i.e. the per unit NAV based on the current market value of the scheme portfolio during the trading
hours of the scheme, will be disclosed on a continuous basis on NSE and BSE and will be updated
within a maximum time lag of 15 seconds from underlying market.
Page 73 of 77
Mirae Asset BSE 500 Dividend Leaders 50 ETFB. Transparency/NAV Disclosure
he AMC will calculate and disclose the first NAV under the Scheme not later than 5 Business Days
from the date of allotment of units under the NFO Period. Subsequently, NAVs will be disclosed at the
close of each business day. NAV of the Units of the Scheme (including options there under) calculated
in the manner provided in this SID or as may be prescribed by the Regulations from time to time.
The NAV will be computed upto 4 decimal places.
Pursuant to Clause 8.1 of SEBI Master Circular June 27, 2024, the NAV of the scheme shall be uploaded
SO-41 on the websites of the AMC (miraeassetmf.co.in) and Association of Mutual Funds in India
(www.amfiindia.com) by 11.00 p.m. on every business day. In case of any delay, the reasons for such
delay would be explained to AMFI and SEBI by the next day. If the NAVs are not available before
commencement of business hours on the following day due to any reason, the Fund shall issue a press
release providing reasons and explaining when the Fund would be able to publish the NAVs.
C. Transaction charges and stamp duty-
SEBI with the intent to enable investment by people with small saving potential and to increase reach
of Mutual Fund products in urban areas and in smaller towns, wherein the role of the distributor is vital,
has allowed AMCs under clause 10.5. of SEBI Master Circular dated June 27, 2024 to deduct
transaction charges for subscription of Rs. 10,000/- and above. The said transaction charges will be paid
to the distributors of the Mutual Fund products (based on the type of product).
In accordance with the said circular, AMC / Mutual Fund will deduct the transaction charges from the
subscription amount and pay to the distributors (based on the type of product and those who have opted
to receive the transaction charges) as shown in the table below. Thereafter, the balance of the
subscription amount shall be invested.
(i) Transaction charges shall be deducted for Applications for purchase/ subscription received by
distributor/ agent as under:
Investor Type Transaction Charges
First Time Transaction charge of Rs.150/- for subscription of Rs.10,000 and above will be
Mutual Fund deducted from the subscription amount and paid to the distributor/agent of the
Investor first time investor. The balance of the subscription amount shall be invested.
Investor other Transaction charge of Rs. 100/- per subscription of Rs, 10,000 and above will be
than First Time deducted from the subscription amount and paid to the distributor/ agent of the
Mutual Fund investor. The balance of the subscription amount shall be invested.
Investor
(ii) Transaction charges shall not be deducted for:
• Purchases /subscriptions for an amount less than Rs. 10,000/-; and
• Transactions other than purchases/ subscriptions relating to new inflows such as Switches, etc.
• Any purchase/subscription made directly with the Fund (i.e. not through any distributor/ agent).
• Transactions carried out through the stock exchange platforms.
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Mirae Asset BSE 500 Dividend Leaders 50 ETFApplicability of Stamp Duty:
Pursuant to Notification No. S. O. 1226 (E) and G.S.R 226(E) dated March 30, 2020 issued by
Department of Revenue, Ministry of Finance, Government of India, read with Part I of Chapter IV of
Notification dated February 21, 2019 issued by Legislative Department, Ministry of Law and Justice,
Government of India on the Finance Act, 2019, a stamp duty @ 0.005% of the transaction value shall
be levied on applicable mutual fund transactions.
Accordingly, pursuant to levy of stamp duty, the number of units allotted on purchase transactions
(including dividend reinvestment) to the unitholders would be reduced to that extent
For details refer in Statement of Additional Information.
D. Associate Transactions
Please refer to Statement of Additional Information (SAI)
E. Taxation
For details on taxation please refer to the clause on Taxation in the SAI apart from the following:
Rates of tax and tax deducted at source (TDS) under the Act for Capital Gains from transfer
of units of Equity Oriented Fund:
Income Tax Rates TDS Rates
Resident/
PIO/
Type of NRI/
Condition NRI/OCBs/ FII &
Capital Gain Other FII Resident
others
non FII
non-
residents
Sale upto
STT has 22nd July, 15% 15% Nil 15%
been paid 2024
on Sale on or
redemption after 23rd 20% 20% Nil 20%
+ Short Term July, 2024
Capital Gain 30% for Non-resident
Normal
(redemption other than corporates,
rate of tax
before Upto 22nd 40% (till 31 March
applicable 30% Nil
completing July, 2024 2024)/ 35% (from 1
to the
one year of April 2024) for non-
Other assessee
holding) residents corporates
cases
Normal
30% for Non-resident
23rd July, rate of tax
other than corporates,
2024 applicable 30% Nil
35% for non-residents
onwards to the
corporates
assessee
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Mirae Asset BSE 500 Dividend Leaders 50 ETFUpto 22nd
STT has 10%# 10%# Nil 10%
++ Long July, 2024
been paid
Term Capital 23rd July,
on
Gain 2024 12.5%# 12.5%# Nil 12.5%
redemption
(redemption onwards
after Upto 22nd
10%* 10%* Nil 10%
completing July, 2024
Other
one year of 23rd July,
cases
holding) 2024 12.5%* 12.5%* Nil 12.5%
onwards
PIO: Person of Indian origin
NRI: Non-resident Indian
FII: Foreign Institutional investor
OCB: Overseas Corporate Body
# Under section 112A of the Act, where long term capital gain exceeds Rs. 1,25,000/- tax is payable @
10% upto 22nd July, 2024 and 12.5% from 23rd July, 2024 onwards plus applicable surcharge and cess
(without indexation benefit).
*without indexation benefit
F. Rights of Unitholders
Please refer to SAI for details.
G. List of official points of acceptance
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-disclosure/offer-documents-
data
H. Penalties, Pending Litigation or Proceedings, Findings of Inspections or Investigations for
Which Action May Have Been Taken Or Is In The Process Of Being Taken By Any
Regulatory Authority
SO-48
https://www.miraeassetmf.co.in/downloads/statutory-disclosure/other-disclosure/offer-
documents-data
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Mirae Asset BSE 500 Dividend Leaders 50 ETFNotwithstanding anything contained in this SID, the provisions of the SEBI (Mutual Funds),
SO-63
Regulations, 1996 and the guidelines thereunder shall be applicable.
THE TERMS OF THE SCHEME WERE APPROVED BY THE DIRECTORS OF MIRAE
ASSET TRUSTEE COMPANY PRIVATE LIMITED IN THROUGH CIRUCLAR
RESOLUTION HELD ON MAY 29, 2025
For and on behalf of the Board of Directors of
Mirae Asset Investment Managers (India) Private Limited
(Asset Management Company for Mirae Asset Mutual Fund)
Sd/-
Rimmi Jain
Head- Compliance, Legal & Company Secretary
Place: Mumbai
Date: XX/XX/XXXX
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Mirae Asset BSE 500 Dividend Leaders 50 ETF