Motilal says its Nasdaq ETFs may trade at premium to NAVs, check before buying

Motilal Oswal Mutual Fund has announced that its two international ETFs - Motilal Oswal NASDAQ 100 ETF and Motilal Oswal NASDAQ Q50 ETF - may trade at a premium to their indicative Net Asset Value (iNAV) due to unusual demand which has risen because of restrictions on overseas investments and limited ability to create new units by market makers.

The fund house disclosed this to its unitholders on Monday through a post on X.



To ensure better buying conditions, the fund house mentioned two steps for the investors. The fund house asked investors to check iNAV and use limit orders.

The post read, to ensure better buying conditions:

1) Check iNAV- Always verify the iNAV before trading on NSE/BSE. iNAV details are mentioned on the fund house website.

2) Use limit orders - Place limit orders to set a maximum price you are willing to pay and avoid overpaying during high demand.

Motilal Oswal NASDAQ 100 ETF is an open-ended scheme replicating/ tracking the NASDAQ -100 Total Return Index. The scheme is suitable for investors who are seeking returns that correspond generally to the performance of the NASDAQ 100 Index, subject to tracking error and want investments in securities constituting the NASDAQ 100 Index.

Motilal Oswal NASDAQ Q50 ETF is an open-ended scheme replicating/tracking the NASDAQ Q-50 Total Return Index. The scheme is suitable for investors who are seeking returns that correspond generally to the performance of the NASDAQ Q-50 Total Return Index, subject to tracking error, and want long-term capital growth.

Recently the fund house has announced the discontinuation of new SIPs registrations and SIP Top-Ups for the Motilal Oswal S&P 500 Index Fund and Motilal Oswal Nasdaq 100 Fund of Fund till further notice.

The changes will be effective from the close of business hours of December 10.

The existing SIPs & SIPs registered till the closure of business hours of December 10, 2024, will remain unchanged.

The current restrictions on lump sum investments, Systematic Transfer Plans (STPs), and Switch-ins will continue to apply as before. There will be no restrictions on redemptions, Systematic Withdrawal Plans (SWP), and Switch-outs.