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Business News/ Mutual Funds / News/  Motilal Oswal Mutual Fund launches Nifty 500 ETF: Key things to know
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Motilal Oswal Mutual Fund launches Nifty 500 ETF: Key things to know

Motilal Oswal Nifty 500 ETF is expected to list on NSE on 6th October 2023

The Motilal Oswal Nifty 500 ETF seeks to replicate/track the total returns of the Nifty 500 Index (istock)Premium
The Motilal Oswal Nifty 500 ETF seeks to replicate/track the total returns of the Nifty 500 Index (istock)

Motilal Oswal Asset Management Company (MOAMC) has announced the launch of the Motilal Oswal Nifty 500 ETF. This exchange-traded fund aims to offer investors exposure to more than 90% of India's listed market capitalization and an excellent opportunity to participate in India's growth story. The ETF is expected to list on NSE on 6th October 2023; the trading symbol is ‘MONIFTY500’.

The Motilal Oswal Nifty 500 ETF seeks to replicate/track the total returns of the Nifty 500 Index, which is designed to measure the performance of the top 500 companies based on market capitalization. Compared to the Nifty 50 Index, the Nifty 500 Index is well-diversified, with its top 10 holdings accounting for only 37%, as opposed to 58% in the Nifty 50 Index. Furthermore, it provides diversified exposure to 21 sectors, some of the sectors includes textiles, consumer services, media, and forest materials that are not present in the Nifty 50 Index. The index offers an excellent blend of Largecap (75%), Midcap (16%) and Smallcap (9%).

Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company Ltd said, " This new offering expands our extensive range of passive funds and provides investors with a valuable addition to our suite of broad-based index funds & ETFs."

Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company Ltd said, "Investors seeking diversification across market caps, sectors, and stocks to mitigate risk will find this ETF to be an ideal choice. With over 90% market capitalization coverage, it offers a blend of stability, diversification, and growth potential, making it an appealing option for those looking to capitalize on India's promising future."

Motilal Oswal Nifty 500 ETF investment objective

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 Nifty 500 Total Return Index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.

Motilal Oswal Nifty 500 ETF minimum application amount

The Minimum Application amount for Motilal Oswal Nifty 500 ETF is 500 and in multiples of Re 1 thereafter. 

Over the last 3 years, the Nifty 500 Index has delivered 25% on an annualized basis, as of the end of August 31, 2023. Over the medium to long term Nifty 500 Index has historically outperformed the Nifty 50 Index aided by strong performance from the mid and smallcap segments. It is important to note that the Nifty 500 Index has exhibited less or similar risk (measured by standard deviation) despite the inclusion of midcap and smallcap stocks that are generally considered more volatile.

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Updated: 04 Oct 2023, 12:42 PM IST
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