Motilal Oswal Mutual Fund Introduces Four New Index Funds Targeting Diverse Sectors
Motilal Oswal Mutual Fund has launched four new index funds recently, and the new index funds offer sector-specific exposure to investors in diversified sectors.
The new offerings include the Nifty MidSmall IT and Telecom Index Fund, Nifty MidSmall Financial Services Index Fund, Nifty MidSmall Healthcare Index Fund, and Nifty MidSmall India Consumption Index Fund.
The NFO for these funds will be opened for subscription on 29th October and be available for subscription till 6th November. All four funds will then remain open for continuous sale and repurchase from 19th November. Every fund would be accessible with a minimum lump sum or SIP investment of Rs.500 and further contributions in multiples of Re 1 thereafter. The scheme will be managed by two experienced fund managers, where each fund manager tracks a specific sector-focused index.
Motilal Oswal Nifty MidSmall IT and Telecom Index Fund
The Motilal Oswal Nifty MidSmall IT and Telecom Index Fund is structured as an open-ended scheme aimed at mirroring the Nifty MidSmall IT and Telecom Total Return Index. This fund will mainly focus on the sectors of information technology and telecom, thus giving investors the opportunity to target growth in these industries. It shall have an allocation of 95-100% into the Nifty MidSmall IT and Telecom Total Return Index components while having the remaining 0-5% for liquid schemes, debt instruments, and money market holdings.
Motilal Oswal Nifty MidSmall Financial Services Index Fund
The Nifty MidSmall Financial Services Index Fund provides exposure to the financial services sector. This is an open-ended scheme that tracks the NIFTY MidSmall Financial Services Total Return Index. Under the fund structure, the investment will be made between 95-100% in companies forming part of the NIFTY MidSmall Financial Services Total Return Index. It should be invested in liquid or debt schemes, along with debt and money market instruments, to achieve a little liquidity and manage some kind of risk.
Motilal Oswal Nifty MidSmall Healthcare Index Fund
The Nifty MidSmall Healthcare Index Fund brings healthcare sector exposure to the forefront. This open-ended scheme replicates the Nifty MidSmall Healthcare Total Return Index, thereby providing investors with the benefit of an evolving healthcare landscape. The fund will allocate a significant 95-100% to the constituents of the health care index while the remaining 0-5% will go into liquid schemes or money market instruments to ensure liquidity options.
Motilal Oswal Nifty MidSmall India Consumption Index Fund
Finally, the Motilal Oswal Nifty MidSmall India Consumption Index Fund focuses on the India Consumption sector. This open-ended fund is designed to replicate the Nifty MidSmall India Consumption Total Return Index, making it suitable for investors looking to leverage consumer demand trends. The fund’s allocation mirrors the pattern of its counterparts, with 95-100% allocated to index constituents and 0-5% in liquid or money market instruments.
Investment Details
Each of these new funds offers a specific sector focus enabling investors to diversify across IT, Financial Services, Healthcare, and India Consumption sectors, depending upon the investment goals. By investing primarily in the indices’ respective components, each fund is structured to provide a simplified and transparent means of participation in these sectors.
This launch by Motilal Oswal Mutual Fund marks an opportunity for investors to enhance their portfolios with sector-focused index funds that provide a diversified approach across mid and small-cap markets.
