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Motilal Oswal Mutual Fund launching a new ETF NFO : Motilal Oswal S&P BSE Healthcare ETF

Motilal Oswal Mutual Fund is launching an ETF, Motilal Oswal S&P BSE Healthcare ETF, that invests across the healthcare sector in India.

The New Fund Offer (NFO) period for the Motilal Oswal S&P BSE Healthcare ETF is from July 14th 2022 to July 22nd 2022.

Objective

The Motilal Oswal S&P BSE Healthcare ETF aims to generate returns (before expenses) close to the total returns of the securities as represented by S&P BSE Healthcare TRI, subject to tracking error. However, the fund does not guarantee or assure that the scheme’s investment objective will be achieved.

Fund Details

Motilal Oswal S&P BSE Healthcare ETFDetails
NFO Opening DateJuly 14th 2022
NFO Closing DateJuly 22nd 2022
Type of FundOpen-ended ETF scheme
Fund ManagerMr Swapnil Mayeka, Mr Abhiroop Mukherjee (for debt component)
Minimum Investment AmountINR 500
Exit LoadNil
SuitabilityVery High
BenchmarkS&P BSE Healthcare TRI
Plans and OptionsNot Available.

Who Can Invest?

Motilal Oswal S&P BSE Healthcare ETF is an open-ended scheme that invests in the healthcare sector stocks. The ETF aims to track the S&P BSE Healthcare Index closely. S&P BSE Healthcare Index aims to closely track the performance of stocks that broadly represent the healthcare theme.

Since the ETF fund invests across stocks belonging to the healthcare sector in India, it is classified as a very high-risk investment. Thus, it is aimed at investors seeking long-term wealth creation by taking exposure to the sector/ theme.

Therefore, investors seeking exposure to the healthcare sector can consider the scheme. 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 Healthcare ETF invests in the same stocks as the S&P BSE Healthcare 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 Healthcare Index95%100%Medium to High
Cash, Money Market & Debt instruments05%Low to Medium

Concluding Remarks

Motilal Oswal S&P BSE Healthcare ETF NFO invests across stocks belonging to the healthcare sector. Motilal Oswal S&P BSE Healthcare ETF aims to replicate the S&P BSE Healthcare Index performance. MO S&P BSE Healthcare ETF fund primarily invests in the same stocks and in the same proportions as S&P BSE Healthcare Index. Thus, the fund aims to generate long-term wealth for investors by investing in the healthcare sector. It is classified as a very high-risk investment option since the fund gets exposure only to the healthcare sector. Also, investors must have a long-term investment approach considering that thematic funds can be quite volatile.

Investors who understand the healthcare sector and can monitor the performance may consider this scheme. Furthermore, the scheme is aimed at investors looking for exposure to the healthcare sector. Since it is a pure equity scheme and healthcare sector-focused, a long-term investment horizon is advised.

Frequently Asked Questions

How Can I Invest in the Motilal Oswal S&P BSE Healthcare ETF NFO?

You can invest in the Motilal Oswal S&P BSE Healthcare ETF 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 Healthcare ETF NFO risky?

It is classified as a very high-risk investment according to riskometer. Motilal Oswal S&P BSE Healthcare ETF is a pure equity mutual fund that invests in stocks across the healthcare sector. Therefore, investors must be mindful of the risk associated with thematic/sector-focused investments. Moreover, the scheme doesn’t guarantee any returns.

Is there a lock-in period for Motilal Oswal S&P BSE Healthcare ETF?

Motilal Oswal S&P BSE Healthcare ETF doesn’t have a lock-in period. Since the ETF units get listed on the stock market, they are traded on the exchanges.