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Home >> Blog >> Motilal Oswal Nifty 500 Momentum 50 ETF NFO: Review & Date

Motilal Oswal Nifty 500 Momentum 50 ETF NFO: Review & Date

  


Motilal Oswal Nifty 500 Momentum 50 ETF: Complete Overview

Motilal Oswal Mutual Fund launches India's first Nifty 500 Momentum 50 Index Fund Motilal Oswal Nifty 500 Momentum 50 ETF under AMC Motilal Oswal Asset Management Company Limited (MOAMC).

The new fund offer will expire on September 18, 2024, however, subscribers may begin participating on September 16, 2024. This mutual fund scheme will be open for ongoing sale and repurchase on September 30, 2024. The minimum subscription amount for the Motilal Oswal Nifty 500 Momentum 50 ETF NFO is Rs.500, with multiples of Rs.1. The plan carries a very significant risk. The achievement of the scheme's investment objective cannot be guaranteed. 

Chief Business Officer for Passive Funds Pratik Oswal said, "The Nifty 500 Momentum 50 TRI has shown exceptional growth and outperformance. This fund offers a low-cost, transparent investment option with the potential for significant returns in upward-trending markets.”

 

What is Nifty 500 Momentum 50 Index Fund?

The goal of the Motilal Oswal Nifty 500 Momentum 50 Index Fund is to replicate the Nifty 500 Momentum 50 TRI's performance.

This index, which spans the whole range of market capitalizations in the Nifty 500 index, consists of 50 stocks chosen for their outstanding recent performance.

As of July 31, 2024, the Nifty 500 Momentum 50 Index had increased by 75.2% over the previous year and 35.9% over the previous five years, indicating respectable results.

Why Nifty 500 Momentum 50 Index Fund?

1 lac invested in 2005 became 76.7 lac with Nifty 500 Momentum 50 Index.

Using a momentum investing approach, the Nifty 500 Momentum 50 Index concentrates on stocks that have demonstrated strong recent performance.

While this approach can be more volatile in bear markets, it often performs well in bull markets and recovery stages.

Advantages

Good historical performance: For 12 of the last 19 calendar years, the index has beaten the larger Nifty 50 TRI.

Broad exposure: consists of large-, mid-, and small-cap companies.

Systematic approach: Reduces the risk of emotionally driven financial decisions by using a transparent, rules-based approach.

Negative aspects

Volatility: Higher short-term volatility could result from the momentum method.

Market phases: In rising markets as opposed to decreasing ones, perform better.

 

Who should invest in this fund?

For individuals looking to invest in high-momentum stocks across a range of market sizes, the Motilal Oswal Nifty 500 Momentum 50 Index Fund may be a wise option.

It provides the possibility of large gains, particularly during a bull market.

Those who don't mind taking on more risk in the hope of earning larger profits.

Scheme Plan: The scheme is available in two options:

Motilal Oswal Nifty 500 Momentum 50 ETF-Direct-Growth 

Motilal Oswal Nifty 500 Momentum 50 ETF-Regular-Growth.

 

 Motilal Oswal Mutual Fund Details

  • In record time, MOAMC crossed the $1 billion threshold in equities mutual funds and PMS assets in 2016. Later that year, MOAMC introduced the Motilal Oswal India Fund (MOIF), extending its reach into the global market.

  • In less than a year, MOAMC's equity assets surpassed $2.5 billion, indicating a 150% increase in just one year. The portfolio of Motilal Oswal Mutual Fund now has a net asset value of Rs.66,452.27 crore. - 34 plans in different categories are available from Motilal Oswal Mutual Fund, including 14 equity, 5 debt, and 5 hybrid mutual funds, and has an AUM of Rs.66,452.27 crores.

Click Here To Stay Updated With The Upcoming NFOs.

 

Fund Overview

Start Date

16 September 2024

End Date

18 September 2024

Allotment Date/Subscription Date/Re-open Date

The scheme reopens on September 30, 2024, for continuous sale and repurchase.

VRO Rating

-

Expense Ratio

Nil

Exit Load

Nil

AUM 

Rs.66,452.27 crore.

Lock-in

NA

Stamp Duty

0.005% (From July 1st 2020)

Benchmark(s)

Nifty 500 Momentum 50 Total Return Index

Min. Investment

Rs.500 and in multiples of Rs.1.

Risk

Very High Risk

Short-Term Capital Gains (STCG)

For less than 2 years, as per Tax Slab.

Long-Term Capital Gains (LTCG)

For more than 2 years, a 12.50% Tax is applicable.

 

How To Invest In The Scheme After The Closure of The NFO?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on September 30, 2024, when the Scheme will reopen; you will have the option to participate and invest directly in the Mutual Fund by spending at NAV based price by logging on to your Demat account and search for “Motilal Oswal Nifty 500 Momentum 50 ETF” or directly with the AMC or simply click the ‘Banner’ below.

 

 

The Objective of The Fund

Subject to tracking error, the Scheme aims to deliver returns that, before costs, match the total returns of the assets represented by the Nifty 500 Momentum 50 Total Return Index. Nevertheless, there can be no assurance or guarantee that the scheme's investment goals will be met.

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

Types of Instruments

Minimum Allocation (% of Total Assets)

Maximum Allocation (% of Total Assets)

Constituents of Nifty 500 Momentum 50 Index

95

100

Money Market instruments and units of liquid schemes

0

5

 

Peers of Motilal Oswal Nifty 500 Momentum 50 ETF

Scheme

1Y Return

AUM (Rs.) / Fund Size (Rs.)

Nippon India Nifty 500 Momentum 50 Index

-

4,31,308 Cr.

Since this scheme is a new scheme, hence no comparable data on its past performance against its peers is available.

 

Risk Factors In Such Funds

  • Tracking mistakes can cause schemes to provide returns that differ from the Nifty 500 Momentum 50 Index or any of the securities represented by the index. This is a problem with index funds in general. Numerous factors may contribute to these inaccuracies.

  • The value of the investments made by the Scheme may be impacted by a range of general securities market factors, such as interest rates, currency exchange rates, and price and volume volatility in the capital markets.

  • Trading volumes, settlement timeframes, and transfer protocols may impose restrictions on the liquidity of the investments made through the Scheme.

  • Risks associated with lending securities include counterparty risk, settlement and liquidity volatility, and collateral value volatility.

 

Past Performance of Business Cycle Funds

Index Funds

NAV (Rs.)

Annualised Return

Return / Risk

SBI Nifty Next 50 ETF

796.30

66.39%

Very High Risk

Mirae Asset Nifty Next 50 ETF 

766.57

65.77%

Very High Risk

 

Motilal Oswal Nifty 500 Momentum 50 ETF-Growth Fund Managers:

  • Mr. Swapnil Mayekar 

  • Mr. Rakesh Shetty

Conclusion

The fund has a profile that is high in risk. Your investing horizon and risk tolerance should be taken into account. This fund can be a suitable choice for your portfolio if you believe in the diversified strategy of investments and are willing to take on more risk in exchange for possibly bigger returns. 

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 before investing.



Frequently Asked Questions

+

A Fund that monitors the success of the top 50 Nifty 500 companies chosen according to their Momentum score normalized.

+

The ETF's returns are somewhat greater than the index fund's returns. 

+

Applying for the NFO is just one click away. You can simply click here to buy best mutual fund.

+

The minimum investment for the Scheme is Rs.500 and in multiple of Rs.1 thereafter.



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