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Business News/ Money / Personal Finance/  NFO Alert: Motilal Oswal Mutual Fund launches Nifty 500 ETF; all you need to know
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NFO Alert: Motilal Oswal Mutual Fund launches Nifty 500 ETF; all you need to know

Motilal Oswal Mutual Fund announced the launch of the Motilal Oswal Nifty 500 ETF. The scheme opened for public subscription on September 27, 2023, and will close on September 29, 2023.

Motilal Oswal Mutual Fund announced the launch of the Motilal Oswal Nifty 500 ETF as a part of its new fund offerings.Premium
Motilal Oswal Mutual Fund announced the launch of the Motilal Oswal Nifty 500 ETF as a part of its new fund offerings.

Motilal Oswal Mutual Fund announced the launch of the Motilal Oswal Nifty 500 ETF, an open-ended replicating/tracking the Nifty 500 Total Return Index.

The scheme opened for public subscription on September 27, 2023, and will close on September 29, 2023. The scheme re-opens for continuous sale and repurchase within five business days from the date of allotment.

What kind of mutual fund scheme is this?

This is an open-ended scheme replicating/tracking the Nifty 500 Total Return Index.

This product is suitable for investors seeking

  • Return that corresponds to the performance of the Nifty 500 Total Return Index subject to tracking error.
  • Long-term capital growth

What is the main objective of investing in this fund?

The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by the Constituents of Nifty 500 Total Return Index, subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the scheme will be achieved.

How may one invest in this scheme?

Investors can invest under the scheme with a minimum investment of Rs 500 per plan/option and in multiples of Re 1. There is no upper limit for investment.

Under normal circumstances, the asset allocation of the scheme will be as follows:

Instruments

Indicative allocations (% of total assets)

Risk Profile

Minimum

Maximum

Constituents of Nifty 500 Index

95%

100%

        Very  High

Units of liquid schemes and money market instruments

0%

5%

Low

Are there similar mutual funds in the market?

To date, no asset management company (AMC) has launched such a fund, thus, making Motilal Oswal Mutual Fund India’s first mutual fund house to launch a fund in the Nifty 500 ETF category.

How will the scheme benchmark its performance?

The performance of the scheme will be benchmarked to Nifty 500 Total Return Index. As the scheme is an exchange-traded fund (ETF) scheme and would primarily invest in securities that are constituents of the Nifty 500 Index, the said index is an appropriate benchmark for the scheme.

The Total Return variant of the Index (TRI) will be used for performance comparison.

Are there any entry or exit loads to this scheme?

This scheme involves no “Entry Load", which means that investors do not have to pay anything to park their earnings in this scheme. The “Exit Load" is also “Nil".

Who will manage this scheme?

The fund will be managed by Swapnil Mayekar and Rakesh Shetty.

Does the fund contain any inherent risk?

The scheme involves “Very High Risk" as per the details mentioned in the Scheme Information Document and is best suited to investors willing to understand that their principal will be subject to very high risk only. However, investors should consult their financial advisors if they doubt whether the product is suitable for them.

 

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Published: 27 Sep 2023, 04:42 PM IST
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