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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 FundDetails
NFO Opening DateJuly 14th 2022
NFO Closing DateJuly 22nd 2022
Type of FundOpen-ended Index Fund
Fund ManagerMr Swapnil Mayekar, Mr Abhiroop Mukherjee (for debt component)
Minimum Investment AmountINR 500
Minimum Additional Purchase AmountINR 500
Exit Load0-1%
SuitabilityVery High
BenchmarkS&P BSE Financials ex Bank 30 TRI
Plans and OptionsRegular 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

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 InstrumentsIndicative Allocation MinimumIndicative Allocation MaximumRisk Profile
Equity & Equity related instruments constituting S&P BSE Financials ex Bank 30  TRI95%100%Medium to High
Cash, Money Market & Debt instruments05%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

How Can I Invest in the Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund NFO?

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

Is Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund risky?

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.

Is there a lock-in period for Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund?

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.