Motilal Oswal AMC launches four index funds

Motilal Oswal Asset Management Company on Monday launched four index (passive) funds. The four schemes are:
Motilal Oswal Midcap 150 Index Fund
Motilal Oswal Nifty 500 Index Fund
Motilal Oswal Nifty Bank Index Fund
Motilal Oswal Nifty Small-cap 250 Index Fund


The new fund offer (NFO) for all these funds opens today and will close on August 30. These schemes will be managed by Swapnil Mayekar.

Motilal Oswal Nifty 500 Index Fund
The scheme seeks investment return that corresponds to the performance of Nifty 500 Index (underlying index), subject to tracking error.

It is India’s first Nifty 500 fund. It is the first low cost multi cap index fund in India. Most of the portfolio is invested in large cap stocks – stable returns and low risk. It will have just over 20 per cent of the portfolio investing in mid cap and small cap companies – areas of growth and higher returns.

Motilal Oswal Nifty Midcap 150 Index Fund
The scheme seeks investment return that corresponds to the performance of Nifty Midcap 150 Index, subject to tracking error. It is an open ended scheme replicating/ tracking Nifty Midcap 150 Index. It is India’s first Midcap 150 Index fund.

Motilal Oswal Nifty Bank Index Fund
The scheme seeks investment return that corresponds to the performance of Nifty Bank Index, subject to tracking error. The Nifty Bank Index comprises of the most liquid and large Indian banking stocks. It provides investors and market intermediaries a benchmark that captures the capital market performance of the Indian banks. It is India’s first Nifty Bank Index fund.

Motilal Oswal Nifty Smallcap 250 Index Fund
The scheme seeks investment return that corresponds to the performance of Nifty Smallcap 250 Index, subject to tracking error. Nifty Smallcap 250 Index represents the balance 250 companies (companies ranked 251-500) from Nifty 500 Index. This index intends to measure the performance of small market capitalisation companies. It is India’s first Nifty Smallcap 250 Index fund.

“Given that a platform like paytm Money is enabling the entry of millions of first investors into the equity mutual fund space and the young generation in India seems to have a liking for digital and DIY; this is our attempt to bring simplicity to participation with open-ended index funds taking Rs 500 lumpsum or SIP. All discussions on index funds and passives start and end with long debates on alpha – while that is a criteria for experienced investors we need to think a lot more about new entrants – digital DIY trends demand simplicity and regulatory trends demand cheaper products enabling easy fund selection for building blocks, asset allocation and financial planning,” says Aashish Somaiyaa, MD & CEO, Motilal Oswal AMC.

The funds are available across all the platforms including Motilal Oswal AMC and paytm Money.

Also read: Why is Motilal Oswal AMC betting big on index funds?