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Motilal Oswal launches Nifty India Defence ETF NFO: Nav

  


Motilal Oswal Nifty India Defence ETF: Complete Overview

“Motilal Oswal Nifty India Defence ETF” by Motilal Oswal Mutual Fund under AMC ‘Motilal Oswal Asset Management Company Limited (MOAMC)’ is an open-ended fund that replicates/tracks the Nifty India Defence Total Return Index. The New Fund Offer (NFO) date is from August 19 to August 21, 2024, with an NFO price of Rs.500 and in multiples of Rs.1 thereafter.To learn about the Fund's asset allocation, and other financial characteristics that influence decision-making, carefully read this blog.

Motilal Oswal Nifty India Defence ETF NFO Details

The scheme is suitable for investors who want to achieve long-term capital growth and seek returns that, subject to tracking error, replicate the returns of the Nifty India Defence TRI. The scheme is a very high-risk scheme. There is no assurance that the scheme's investment goal will be met. The scheme will invest 95-100% of its units in Constituents of the Nifty India Defence Index and 0-5% units of Liquid schemes & Money Market instruments.

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Fund Overview

The minimum subscription amount is set at Rs.500 and in multiples of Rs.1 thereof.

Start Date

19 August 2024

End Date

21 August 2024

Allotment Date / Subscription Date

27 August, 2024.

VRO Rating

-

Expense Ratio

Nil

Exit Load

Nil

AUM 

Rs.2,331 Cr. (as of 19 Aug 2024)

Lock-in

NA

Stamp Duty

0.005% (From July 1st 2020)

Benchmark 

Nifty India Defence TRI.

Min. Investment

Rs.500 and in multiple of Rs.1.

Risk

Very High

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 NFO After The Closure Date?

If you have missed participating in the NFO and now want to invest in the same Scheme on a continuous basis, then on 27 August 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 India Defence ETF” or directly with the AMC or simply click the ‘Banner’ below.

The Objective of The Fund

The Scheme aims to produce returns that, Subject to tracking error before expenses, closely match the total returns of the stocks represented by the Nifty India Defence 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 the Nifty India Defence Index 

95

100

Liquid schemes & Money Market instruments

0

5

Peers of Motilal Oswal Nifty India Defence ETF

Scheme

1Y Return

AUM (Rs.)

Aditya Birla Sun Life Nifty India Defence Index Fund

-

353,517.40 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

  • The Underlying Index's stocks would be invested in by the Scheme in the same ratio as the securities included in the Index. Therefore, the Scheme would be subject to the risk associated with the appropriate Underlying Index.

  • The Plan is not actively overseen. Due to its index-linking, the Scheme could be impacted by an overall downturn in the Indian markets that affects its underlying index.

  • Since the Scheme's units are listed on the Stock Exchange, trade in those units may be suspended owing to market conditions or for other reasons that the Exchange Authorities or SEBI deem appropriate.

  • The investment in the scheme could increase or decrease based on a variety of variables and pressures affecting the debt and capital markets, as well as changes in the interest rate, price, and value of the securities in which the scheme invests.

Past Performance of Index Funds

Index Funds

NAV (Rs.)

Annualised Return

Return / Risk

Bandhan Nifty 50 Index Fund Direct Plan-Growth

53.02

25.17%

Very High Risk

ICICI Prudential Nifty Next 50 Index Direct-Growth

66.23

63.23%

Very High Risk

UTI Nifty 50 Index Fund Direct-Growth

166.69

25.16%

Very High Risk

Motilal Oswal Nifty India Defence ETF NFO-Who Can Invest?

This Fund is ideal for those who want long-term capital growth and seek returns that, subject to tracking error, replicate the returns of the Nifty India Defence TRI. 

Motilal Oswal Nifty India Defence ETF-Growth Fund Managers:

  • Swapnil Mayekar

  • Rakesh Shetty

Conclusion

The Motilal Oswal Nifty India Defence ETF is appropriate for investors aiming for returns that, subject to tracking error, replicate the returns of the Nifty India Defence TRI and long-term capital growth. Always assess your Financial Goals, Risk tolerance, time horizons, etc. before making an investment decision. 

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

+

The NAV of the Scheme is Rs.9.29 as of 19 August 2024.

+

The exit load of this Scheme is Nil.

+

The opening date of the Scheme is 19 August 2024.

+

NAV expands as Net Assets Value.

+

The allotment date of the NFO is 27 August 2024.



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