Motilal Oswal AMC launches Motilal Oswal Nifty India Defence Index Fund

Motilal Oswal Nifty India Defence Index Fund is India’s first Index offering exposureto Defence stocks.

Mumbai, 12 June 2024: MotilalOswal Asset Management Company (‘MOAMC’) has announced the launch of Motilal Oswal Nifty India Defence Index Fund, India’s first Index Fund offering exposure to Defence stocks listed in India. The fund aims to provide investors an opportunity to participate in the growth potential of the Defence sector. Motilal Oswal Nifty India Defence Index Fund is anopen-ended fund replicating/tracking the total returns of the Nifty India Defence Index.

The NFO opens on 13^th June 2024 and closes on 24^th June 2024.

The Nifty India Defence Index is designed to reflect the performance of Defence companies operating in manufacturing and servicing defence projects. The index comprises 15 companies which also form a part of the Nifty total market.

Overthe 1 year and 3 year CAGR, of Nifty India Defence Index has been 177% and 89.5% respectively as of end of May 31, 2024. While Defence exhibits strong performance potential,it may also experience higher volatility.

Why Defence?

According to Nomura research, the Defence sector highlights a significant opportunity for India's defence sector, estimating a pipeline of USD138 bn over FY24-FY32F. As India continues to prioritizenational security and technological advancement, investors are presented with a unique opportunity to participate in this strategic growth. The recent stellar performance this sector can be attribute to various changes in government policies and prioritizing the defence sector. Government of India has put import embargo on 4600+ defence item by Dec 2027 to reduce imports and increase defence manufacturing in India, moving towards ‘Atmanir bhar Bharat’(self-reliance). Government is also actively aiming to increase exports of defence goods and services which is estimated to double in coming 3-4 years according to Nomura Research.

According to market experts, companies in this sector have improved their balance sheets and also their profitability through the continued increase in exports and increase in Defence expenditure by the government. This makes investing in the India Defence Index Fund an attractivei nvestment proposition.

Prateek Agrawal, MD & CEO, Motilal Oswal Asset Management Company Ltd said, “India’s strides towards Atmanirbharta (Self-Reliance) in defence arepaving the way for significant growth and innovation. With the Motilal OswalNifty India Defence Index Fund, we aim to capitalise on the projected $100billion to $120 billion expansion in the defence sector over the next six years. As the fourth largest defence spender globally, India''s focus onself-reliance and modernisation offers substantial opportunities for domesticdefence companies. This fund is poised to benefit from India''s robustadvancements in defence technology and infrastructure.”

Pratik Oswal, Chief of Business Passive Funds, Motilal Oswal Asset Management Company Ltd said, “Since the Covid era, the Nifty IndiaDefence TRI Index has outperformed the Nifty 50 TRI four times in the last six calendar years. This is the outcome of the government''s unwavering concentration on fostering bilateral ties between nations in order to boost exports and lower imports as a part of strategic changes in government policies. As a result, India’s capabilities in the manufacturing sector is growing at a rapid pace. Made in India initiatives have resulted in a notable74% increase in FDI flows, which is driving the defence sector''s expansion. Investors seeking long-term capital growth with returns commensurate with them performance of the Nifty India Defence Total Return Index can consider theMotilal Oswal Nifty India Defence Index Fund, an open-ended fund thatreplicates and tracks the Nifty India Defence Total Return Index subject totracking error. We look forward to greater allocation to the defence budget in2024 as well”

The investment objective of Motilal Oswal Nifty India Defence Index Fund is to provide returns that, before expenses, correspond to the total returns of the securities a srepresented by the Nifty India Defence Total Return Index, subject to tracking error. However, there is no guarantee or assurance that the investment objectiveof the scheme will be achieved.

The Minimum Application amount for Motilal Oswal Nifty India Defence Index Fund is Rs.500/- and in multiples of Re. 1/- thereafter. On ongoing basis investor canpurchase/redeem units of the Scheme through financial advisor or by log-in to www.motilaloswalmf.com.

* Investors should consult their financialadvisers if in doubt about whether the product is suitable for them.

Note: Other Funds managed by the FundManagers can be viewed on https://www.motilaloswalmf.com/download/index-fund/factsheet

Source:Niftyindices, Factset, ACEMF, Nomura Research

Disclaimer This release has beenissued on the basis of internal data, publicly available information and othersources believed to be reliable. The information contained in this document isfor general purposes only and not a complete disclosure of every material fact.The Stocks (if any) mentioned herein is for explaining the concept and shallnot be construed as an investment advice to any party. The information / dataherein alone is not sufficient and shouldn’t be used for the development orimplementation of an investment strategy. It should not be construed asinvestment advice to any party. All opinions, figures, estimates and dataincluded in this article are as on date. The article does not warrant thecompleteness or accuracy of the information and disclaims all liabilities,losses and damages arising out of the use of this information. The statementscontained herein may include statements of future expectations and otherforward-looking statements that are based on our current views and assumptionsand involve known and unknown risks and uncertainties that could cause actualresults, performance or events to differ materially from those expressed orimplied in such statements. Readers shall be fully responsible/liable for anydecision taken on the basis of this article. Mutual Fund investments aresubject to market risks, read all scheme related documents carefully.

About Motilal Oswal Asset Management Company:

Motilal Oswal Group possesses legacy in equities for over 3 decades. Motilal Oswal Asset Management Company Ltd. (MOAMC) is registered with SEBI as the Investment Manager for Motilal Oswal Mutual Fund. It was incorporated on November 14, 2008. It provides Investment Management and Advisory Services to investors based within and outside India and having AIF’s, Portfolio Management Services business and Mutual Funds.

For further details contact:
Rohini Kute
Head, Corporate Communication,
Motilal Oswal Financial Services
Mail: rohini.kute@motilaloswal.com

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