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Motilal Oswal Mutual Fund launching a new Index Fund : Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund NFO
Motilal Oswal Mutual Fund is launching an index fund, Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund, that invests in the financial services sector of India. It is our key to benefit from the growth of the Indian financial sector.
The New Fund Offer (NFO) period for the Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund is from July 14th 2022 to July 22nd 2022.
Objective
The Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund aims to provide returns (before expenses) similar to that of total returns of the S&P BSE Financials ex Banks 30 Total Return Index, subject to tracking error. However, there is no assurance that the scheme’s investment objective will be achieved.
Fund Details
| Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund | Details |
| NFO Opening Date | July 14th 2022 |
| NFO Closing Date | July 22nd 2022 |
| Type of Fund | Open-ended Index Fund |
| Fund Manager | Mr Swapnil Mayekar, Mr Abhiroop Mukherjee (for debt component) |
| Minimum Investment Amount | INR 500 |
| Minimum Additional Purchase Amount | INR 500 |
| Exit Load | 0-1% |
| Suitability | Very High |
| Benchmark | S&P BSE Financials ex Bank 30 TRI |
| Plans and Options | Regular and Direct Plan and Growth Option |
Note:
Minimum Application Amount SIPs:
Weekly: INR 500 and in multiples of Re 1 thereafter. Minimum Installments: 12
Fortnightly: INR 500 and in multiples of Re 1 thereafter. Minimum Installments: 12
Monthly: INR 500 and in multiples of Re 1 thereafter. Minimum Installments: 12
Quarterly: INR 1,500 and in multiples of Re 1 thereafter. Minimum Installments: 4
Annual: INR 6,000 and in multiples of Re 1 thereafter. Minimum Installments: 1
Exit Load: 1% if redeemed on or before 15 days from the allotment date, Nil if redeemed after 15 days from the allotment date.
Who Can Invest?
Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund is an open-ended scheme that replicates/ tracks the S&P BSE Financials ex Banks 30 TRI.
S&P BSE Financials ex Banks 30 Index comprises top 30 companies on the basis of the float-adjusted market capitalization of the S&P BSE 250 LargeMidcap Index – Financial Sector. The maximum weight per stock is capped at 15%, and the index is rebalanced twice a year – in June and December.
Since the index fund invests across stocks belonging to the financial sector in India, it is a high-risk investment. Thus, it is aimed at investors seeking long-term wealth creation.
Therefore, investors seeking exposure to the financial sector can consider Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund. However, it is necessary to have a long-term investment horizon (5+ years).
Popular Funds by Motilal Oswal Mutual Funds
- Motilal Oswal Nasdaq 100 Fund of Fund
- Motilal Oswal S&P 500 Index Fund
- Motilal Oswal Large and Midcap Fund
- Motilal Oswal Long Term Equity Fund
- Motilal Oswal Nifty 50 Index Fund
Fund Manager
Mr Swapnil Mayekar
Mr Swapnil Mayekar has more than Swapnil has more than 11 years of experience in fund management and product development. He has been associated with Motilal Oswal AMC since 2005 and is currently the Fund Manager at the fund house. Prior to joining Motilal Oswal AMC, he was with Business Standard Limited. Mr Mayekar holds an M.Com degree from Mumbai University and also holds an Advanced Diploma in Business Administration from Welingkar, Mumbai.
Mr Abhiroop Mukherjee
Mr Abhiroop has more than 13 years of experience in Debt and Money Market Instruments, Securities trading and fund management. He joined Motilal Oswal in 2011 and is currently the Vice President – Fund Manager Fixed Income. Prior to joining Motilal, he worked with PNB GILTS Ltd. Mr Mukherjee holds a PGPBF from the National Institute of Bank Management and also a Bachelor of Commerce in Banking, Corporate, Finance and Securities Law from the University of Calcutta.
Asset Allocation
Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund invests in the same stocks as the S&P BSE Financials ex Bank 30 Index. The following is the indicative asset allocation of the fund.
| Types of Instruments | Indicative Allocation Minimum | Indicative Allocation Maximum | Risk Profile |
| Equity & Equity related instruments constituting S&P BSE Financials ex Bank 30 TRI | 95% | 100% | Medium to High |
| Cash, Money Market & Debt instruments | 0 | 5% | Low to Medium |
Concluding Remarks
Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund invests across stocks belonging to the financial services sector. Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund aims to replicate the S&P BSE Financials ex Bank 30 Index performance. The Index Fund primarily invests in the same stocks and in the same proportions as the S&P BSE Financials ex Bank 30. Thus, the fund aims to generate long-term wealth for investors. It is classified as a very high-risk investment option based on riskometer since the fund only gets exposure to the financial sector. Thus, investors must have a long-term investment approach.
Investors who understand the financial services sector and can monitor the performance may consider investing in this scheme. Since it is a pure equity scheme and financial services sector-focused, a long-term investment horizon is is essential.
Frequently Asked Questions
You can invest in the Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund NFO through any of the following methods:
Offline: By filling out the Motilal Oswal AMC ETF NFO application and submitting it along with all documents and cheques to the nearest Investor Service Center of CAMS or Motilal Oswal mutual fund office.
Online:
1. Motilal Oswal Mutual Fund Website
2. Online FinTech platforms and mutual fund platforms
3. Through demat account
4. Through a mutual fund distributor or agent
According to the riskometer, it is a very high-risk investment since it’s a sector-focused fund. Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund is a pure equity mutual fund that invests in stocks across the financial services sector. Thus, the scheme falls under the very high-risk category. Investors must be aware of the risks associated with thematic/sector-focused investments, and the scheme doesn’t guarantee any returns.
No, Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund doesn’t have a lock-in period. The units can be bought and sold at any time after the allotment. The scheme offers good liquidity to investors.
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