Motilal Oswal Nifty India Defence Index Fund- NFO - Date & NAV

Introduction

Over the last few decades, India's mutual fund sector has seen phenomenal growth. Many investors who started with mutual funds in the 1960s and 1970s have gone on to become market leaders in their areas.

Do you include yourself among those who want to invest in mutual funds and who are keen to show yourself as a leader in this market? Or do you want to invest your money to make it big?

We're back with another thought-provoking and informative blog post that can help you with your next financial decision. So, this time, we've devised the business concept of the 'Motilal Oswal Nifty India Defence Index Fund'.

This article will describe what is included in the fund program and how it works.

 

Everything You Need to Know About Motilal Oswal Nifty India Defence Index Fund - NFO

Motilal Oswal Nifty India Defence Index Fund, created by Motilal Oswal Mutual Fund, is an open-ended index fund that follows the Nifty India Defence Total Return Index. By making investments in the companies that make up the index, the fund seeks to replicate the performance of the Indian defense sector. The lowest investment required to join is Rs.500 for investors. The scheme is suitable for such investors who are looking for a return that, after accounting for tracking error and long-term capital growth, matches the returns of the Nifty India Defence Total Return Index. The scheme has no Exit Load.

To learn about the fund's asset allocation, prior performance, if any, and other financial characteristics that influence decision-making, carefully read this blog.

 

 

Motilal Oswal Nifty India Defence Index Fund - NFO Overview

The investment period for the Scheme is set for June 13, 2024, through June 27, 2024. The strategy is classified as extremely risky. There is no assurance that the scheme's investment goal will be met.

The scheme will invest in Equity and instruments linked to equity, such as derivatives. The Scheme may buy money market instruments, units of liquid schemes, and mutual fund units using its capital. The scheme has no entry load.

 

Fund Overview

The Motilal Oswal Nifty India Defence Index Fund has an AUM of Rs.53,720 crores (as of 13 June 2024), and the minimum subscription amount is set at Rs.500.

Start Date	13 June 2024
End Date	27 June 2024
VRO rating	-
Expense ratio	NA
Exit load	1% if redeemed within 15 days.
AUM (Fund size)	NA
Lock-in	No Lockin
Stamp Duty	0.005% (From July 1st 2020)
Benchmark	Nifty India Defence Total Return Index
Min. Investment	Rs.500
Risk	Very High
Short-term capital gains (STCG)	Returns taxed at 15% if you redeem before 1 year.
Long-term capital gains (LTCG)	After 1 year, pay a LTCG tax of 10% on returns of ₹1 lakh+ in a financial year.

 

 

The Objective of the Fund

The Scheme intends to deliver returns that, without tracking error, match the total returns of the securities as shown by the Nifty India Defence Total Return Index. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

Asset allocation (% of Net Assets) of the Scheme's portfolio will be as follows:

Types of Instruments	Minimum Allocation (% of Net Assets)	Maximum Allocation (% of Net Assets)	Risk Profile
Components of the Nifty India Defense Index	95	100	Very High
Money Market instruments and quantities of liquid schemes	0	5	Low

 

Peers of Motilal Oswal Nifty India Defence Index Fund 

Equity/Large Cap Funds	1Y Return	3Y Return	AUM (Cr)
Franklin India Opportunities Fund-Growth	74.44%	30.94%	3,933.36
SBI Equity Minimum Variance Fund Regular - Growth	28.15%	16.81%	190.17
Bandhan Innovation Fund Regular-Growth	-	-	767.76

Risk Factors in Such Funds

• The Underlying Index's stocks would be invested in by the Scheme in the same ratio as the securities included in the Index. Therefore, the Scheme would be subject to the risk associated with the appropriate Underlying Index.

• This is the danger associated with being overly exposed to certain stocks, issuers, or market sectors.

• The Plan is not actively overseen. Due to its index-linking, the Scheme could be impacted by an overall downturn in the Indian markets that affects its underlying index.

 

Past Performance of Equity, Sectoral / Thematic / Index Funds

Equity/ Index Funds	NAV (Rs)	Annualized Return (1Y)	Return/Risk
Aditya Birla Sun Life Nifty Midcap 150 Index Fund	23.37	56.19%	Very High Risk
Nippon India Nifty Midcap 150 Index Fund Direct-Growth	23.89	55.60%	Very High Risk
UTI Nifty200 Momentum 30 Index Fund Direct-Growth	24.33	68.17%	Very High Risk

 

 

Motilal Oswal Nifty India Defence Index Fund NFO - Who can invest?

This fund is ideal for you if you are looking for a return that, after accounting for tracking error and long-term capital growth, matches the returns of the Nifty India Defence Total Return Index.

 

Motilal Oswal Nifty India Defence Index Fund NFO - Growth Fund Managers

• Mr. Swapnil Mayekar  

• Rakesh Shetty

 

Conclusion

The scheme comes under a very high-risk category and it plans to invest in Equity and instruments linked to equity, such as derivatives, purchase money market instruments and units of liquid schemes and mutual Fund Units. Always assess your Financial Goals, Risk tolerance, etc. before making an investment decision. 

Disclaimer: This NFO analysis is provided solely for informative reasons and should not be construed as investment advice. Always conduct research and talk with a financial advisor.