Mirae Asset BSE Select IPO ETF FOF

India’s economy is potentially in bright spot from long term structural growth story perspective with various tailwinds for listing of new companies on exchange

From CY 2021 to CY 2024 onwards approx. INR 4,09,908 crore worth of money has been mobilized in 255 IPO’s listed on Mainboard Exchange in India*

New Age business are potentially starting to be visible under the umbrella of traditional sector classification. India is 3rdlargest globally in terms of number of unicorns. With public market sale being preferred route, we may see good number of quality IPO’s in near future

Also, post 2016 we have seen surge in investment in unlisted space. This indicates that we can expect more number of IPOs in the coming years.

While Institutional investor’s have been traditionally largest subscribers of IPO, however in recent time retail have also stepped in with significant demand. But at the same time, accessing IPO’s is becoming increasingly difficult due to higher subscriptions.

BSE Select IPO Index focuses only on IPO and spin-off within the universe of top 500 stocks in terms of full market capitalization. Investor’s can tap into IPO stocks for potential wealth creation provided they agree to stay invested for long-term.

Recently listed IPO’s don’t find sufficient representation in actively managed Growth/Equity Oriented Schemes as well popular broad based indices


Source: ACE MF, NSE Indices Limited Data as on January 31, 2025. Pursuant to Part IV of Chapter 2 of SEBI master circular dated June 27, 2024, Categorization and Rationalization of Mutual Fund Schemes. 32 large cap funds; 31 large and midcap funds, 39 flexi cap funds, 29 midcap funds, 30 mullti cap funds and 30 small cap funds are considered. Please refer https://www.sebi.gov.in/legal/master circulars/jun 2024/master circular for mutual funds_84441.html for**detailed guideline of categorization.*

IPOs and Spin-off both are medium to get a new entity listed on the recognized stock exchange. While number of spin-off relative to IPO’s are less, but they can also be potential gateway for wealth creation. Generally Spin-off is considered by larger entity for unlocking shareholder value.

With this backdrop, we would like to share first of its kind Mirae Asset BSE Select IPO ETF & FOF
(An open-ended scheme replicating/tracking BSE Select IPO Total Return Index)

Index Methodology :

  • Only recently listed equity shares of companies & spin-off/demerger will be eligible to be part of the index with minimum listing history of 3 month within top 500 universe by full market capitalization.
  • If the Average Full Market Capitalization of the newly listed stock/spin-off is greater than average full market capitalization of the 200thcompanies in BSE All Cap Index, than direct inclusion of such newly listed stock/spin-off
  • For all other newly listed stock/spin-off the inclusion will be considered if :
  1. their average full market capitalization is greater than average full market capitalization of 500thstock of BSE All Cap Index and
  2. Annualized Traded Value of such newly listed stock/spin-off is greater than that of the 475thstock in BSE All Cap Index
  • At each quarterly rebalancing stocks will be excluded if they meet any of the following criteria:
  1. Stocks average full market capitalization falls below that of the 600thstock in the BSE All Cap Index
  2. Stocks annualized traded value falls below that of the 600thstock in the BSE All Cap Index
  3. Stocks that have completed 5 year of holding in the BSE Select IPO Index
  • Index will aim to maintain minimum 20 stocks and maximum 100 stocks with stock cap of 5% to be effective every quarter.

Peak bull market. Worst of the investments being sold as thematic NFO :frowning:

The constituents