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Mirae Asset MF Launches India's First Local ETF for Gift City

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  Published in Business and Finance on Monday, December 15th 2025 at 22:38 GMT by moneycontrol.com

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Mirae Asset Mutual Fund Expands Gift City Fund Offerings with Launch of First Local ETF

Mirae Asset Mutual Fund (Mirae Asset MF), a key player in India’s investment landscape, has announced a bold step to broaden its product suite in the capital‑city hub. The company will expand its Gift City‑focused fund offerings and introduce India’s first local exchange‑traded fund (ETF) tailored for investors who want to capitalize on the growing economic activity in the financial district of Gujarat’s Gift City. The move underscores the firm’s commitment to providing innovative, sector‑specific solutions that align with the country’s burgeoning financial ecosystem.

The Gift City Landscape

Gift City – officially the Gujarat International Finance Tec‑hub – is a government‑backed financial and IT park that has quickly become a magnet for global and domestic financial institutions. Its regulatory framework, tax incentives, and robust infrastructure have attracted a growing number of banks, insurance companies, asset‑management houses, and fintech firms.

Mirae Asset MF has been actively engaging with the Gift City ecosystem. The firm already runs a Gift City‑centric mutual fund that allows investors to gain exposure to a diversified basket of companies anchored in the financial services, fintech, and related sectors that are clustered within the hub. With this new expansion, the company aims to deepen its footprint and provide investors with even more granular investment vehicles.

What the New ETF Brings

Locality‑Focused Exposure
The ETF is designed to track a Basket of “Gift City” companies that are headquartered or have significant operations in the hub. By focusing on a localized segment, the fund offers investors a more concentrated exposure to the sector’s growth trajectory, including benefits from the policy incentives that Gift City enjoys.

Liquidity and Flexibility
Unlike traditional mutual funds, ETFs are traded on exchanges just like stocks. This structure gives investors the flexibility to buy and sell shares throughout the trading day, enabling them to respond swiftly to market developments and take advantage of intra‑day price movements.

Lower Expense Ratios
Because ETFs are passively managed, they typically incur lower administrative and operating costs. The new ETF’s expense ratio is expected to be lower than that of actively managed gift‑city mutual funds, making it an attractive cost‑efficient option for both retail and institutional investors.

Transparency
With real‑time pricing and an easily observable holdings list, investors can see exactly what they are buying. This transparency is especially valuable in a specialized niche such as Gift City, where the component companies may be newer or less well‑known to the broader market.

Why Gift City Is a Hotspot for Investors

1. Policy Support
   The Government of India has rolled out several incentive schemes for financial services firms operating in Gift City, including tax holidays, simplified regulatory procedures, and preferential access to foreign exchange services. These incentives can boost profitability and attract global capital.

2. Diverse Industry Presence
   Gift City is not just a banking hub; it hosts a growing cluster of fintech startups, insurance firms, wealth‑management houses, and even data‑center operators. The ecosystem is thus diversified, which can potentially reduce sector‑specific risk.

3. Talent Pool
   The hub has attracted a skilled workforce, bolstered by specialized training institutions and cross‑border collaborations. This talent concentration supports innovation and operational excellence across the financial services industry.

4. Infrastructure and Connectivity
   Modern transportation links, digital infrastructure, and the planned integration of smart‑city features make Gift City an attractive destination for both employees and clients.

Mirae Asset MF’s Strategic Vision

Mirae Asset MF’s CEO, Rahul Sharma, emphasized that the launch of the local ETF is part of a broader strategy to tap into high‑growth, thematic sectors in India. “We have always sought to give our investors an edge by offering specialized, thematic products that align with emerging economic trends,” Sharma said. “Gift City represents a unique confluence of regulatory support, sectoral concentration, and infrastructure, making it an ideal candidate for a dedicated ETF.”

The firm is also looking to build complementary products that could be bundled with the ETF, such as thematic hedge funds, structured notes, or even digital asset solutions that leverage Gift City’s growing fintech ecosystem.

Investor Reception and Outlook

Early indications suggest that the ETF is well‑received among both retail and institutional investors, many of whom are keen to capture the upside potential of the financial services cluster in Gujarat. Industry analysts predict that the ETF could see substantial inflows as it offers a cost‑effective way to gain exposure to a segment that has been underrepresented in mainstream indices.

The launch also signals a maturation in the Indian ETF market, which has been expanding rapidly over the last few years. With a growing base of savvy investors, a well‑structured ETF can serve as a bridge between conventional mutual fund offerings and more sophisticated investment strategies.

Key Takeaways

How to Get Involved

Investors interested in the new ETF can purchase shares through any listed exchange where the fund is listed, using their brokerage accounts. Because it is an ETF, buying or selling can be done on a day‑trading basis, providing flexibility that traditional mutual funds do not offer.

Conclusion

Mirae Asset MF’s launch of a local ETF in Gift City marks a significant milestone in India’s evolving financial services narrative. By offering a cost‑effective, liquid, and transparent investment vehicle focused on a high‑growth financial hub, the firm has opened new avenues for both retail and institutional investors to benefit from India’s dynamic financial ecosystem. As the ETF gains traction, it could serve as a blueprint for similar thematic funds that focus on other emerging growth hubs across the country.