Motilal Oswal Mutual Fund Stalls SIP Inflows in Two International Schemes
Motilal Oswal Mutual Fund has stopped accepting existing SIP inflows for two of its international schemes-Motilal Oswal S&P 500 Index Fund and Motilal Oswal Nasdaq 100 Fund of Fund. This will stop with effect from the end of the day on Sunday, January 5, 2025.
The mutual fund house has cited the exhaustion of overseas investment limits as the reason for the move. According to a notice-cum-addendum shared with unitholders, any SIP inflows received after the cut-off time on January 5, 2025, will not be accepted or processed.
The pause will only stop new payments from SIPs in these two schemes. However, the SIPs will remain active and could restart later if rules or limits change.
Other transactions such as redemption, switch-out, systematic withdrawal plans, and transfer-outs under these schemes would remain unaffected. The notice is an integral part of the Scheme Information Document (SID) and Key Information Memorandum (KIM) for the respective schemes and all other details remain unchanged.
Motilal Oswal S&P 500 Index Fund
The Motilal Oswal S&P 500 Index Fund had reported an AUM of Rs.3,781 crore as of November 30, 2024. This scheme aims to replicate the performance of the S&P 500 Total Return Index subject to tracking error.
The minimum investment with this fund is Rs.500 and further investments can be made in Rs 1. The fund has invested 95–100% of its investments in equity and equity-related securities connected to the S&P 500 Total Return Index and 0–5% in debt instruments, money market securities or overseas mutual fund schemes.
The fund is benchmarked against the S&P 500 Total Return Index and is managed by a team of portfolio managers. It aims to provide exposure to the top 500 companies in the United States to investors.
Motilal Oswal Nasdaq 100 Fund of Fund
Motilal Oswal Nasdaq 100 Fund of Fund: It has an AUM of Rs.5,468 crore as of November 30, 2024, and invests mainly in the units of the Motilal Oswal Nasdaq 100 ETF.
With a similar minimum investment requirement of Rs.500, this scheme is benchmarked against the NASDAQ-100 Total Return Index. Its portfolio comprises 95-100% investment in the ETF and 0-5% in debt, money market instruments, liquid schemes, government securities, or cash equivalents. This scheme provides a chance to invest in one of the largest non-banking firms listed on the Nasdaq Stock Exchange.
The house has reassured that a halt to SIP inflows is only a temporary one, susceptible to potential regulatory changes. The investors are advised to see updates from the house pertaining to a change in Overseas investment limits or other regulatory issues.
