MotilalOswal Mutual Fund unveils ‘Motilal Oswal Nifty Capital Market Index Fund’
- NFO opens on26th November and closes on 10th December, 2024
Mumbai, 26th November 2024: Motilal Oswal Mutual Fund (MOMF) today announced the launch of itslatest new fund offer ‘MotilalOswal Nifty Capital Market Index Fund’. This fund will be offering exposureto the growth potential of stocks listed under the capital market theme inIndia. The index comprises 15 companies which also form a part of the Nifty 500.
KeyFund Details:
NFOPeriod: 26th November 2024 to10th December 2024
InvestmentObjective: The investment objective of thescheme is to provide returns that, before expenses, correspond to the totalreturns of the securities as represented by Nifty Capital Market Total ReturnIndex, subject to tracking error. However, there is no guarantee or assurancethat the investment objective of the scheme will be achieved.
Benchmark:Nifty Capital Market Total Return Index.
PortfolioStrategy: High-growth funds designed forinvestors with a very high-risk appetite
Investor Profile: Thefund is suitable for investors who are seeking long-term capital growth andreturns that corresponds to the returns of the Nifty Capital Market TotalReturn Index, subject to tracking error.
The Nifty Capital Market Total Return Index has delivered 96.9%returns in last 1 year & 31.9% in past 3 years (Data as on October 31, 2024).While this theme exhibitsstrong performance potential, it may also experience higher volatility.Interestingly, between 2010 and 2024 exchange volume and turnover havegrown by 52% annually and considering current monthly average, it may reach to95,000 Lakh Cr by FY2025.
According to a research by Motilal Oswal AssetManagement Company India’s financial markets are witnessing exponential growth,fueled by rising domestic savings, enhanced digitization and increasing retailparticipation. Over the last eight years, the number of demat accounts hassurged at an annualized rate of 29% CAGR, reaching 17.5 crore accounts as ofSeptember 2024. Simultaneously, monthly SIP inflows have soared from ₹3,698crore in 2016 to over ₹24,509 crore in 2024, reflecting growing investorconfidence. Furthermore, India led global markets in 2024 with 209 IPOs,raising ₹64,000 crore at a 46% CAGR since FY19. Despite these advancements,only 8 crore Indians invest in the stock market, presenting significantuntapped potential.
Pratik Oswal, Chief of Business Passive Funds,Motilal Oswal Asset Management Company Ltd said, “India’s capital market has grown exponentially since its inception.Technological and operational ease with on the go investment, T+1 settlementtime, UPI & IMPS based transfer on real-time basis has further boostedinvestor participation. However, there is a huge untapped potential with only 8Crore stock market investors compared to India’s larger population. Globally,in 2024, India will be leading in IPO issuances, with $8 billion raised betweenFY 19 and FY 24. Similarly, investment through mutual funds, PMS, & AIF isalso rising at 21% p.a., cementing the strong market performance. Motilal OswalNifty Capital Market Index Fund is a step toward spearheadingand riding this growth wave. The fund invests in companies integral to thecapital markets ecosystem, including stock brokers, depositories, wealthmanagement firms, exchanges, and mutual fund companies”.
The fund will be managed by Mr. Swapnil Mayekar(for Equity Component) and Mr. Rakesh Shetty (for Debt Component). The fundsare suitable for investors who are seek Long-term capital growth.
The above product labelling assigned during the New Fund Offer (NFO) isbased on internal assessment of the scheme characteristics or model portfolioand the same may vary post NFO when the actual investments are made
For scheme specificRisk factors refer Scheme information document of the Fund visit https://www.motilaloswalmf.com/CMS/assets/uploads/Documents/c89e4-sid-motilal-oswal-nifty-capital-market-index-fund-clean.pdf
Source: Niftyindices, MOIE, IBEF, NSE Research
About Motilal Oswal Asset ManagementCompany:
Motilal Oswal Group possesses a legacy in equities for over 3 decades.Motilal Oswal Asset Management Company Ltd. (MOAMC) is registered with SEBI asthe Investment Manager for Motilal Oswal Mutual Fund. It was incorporated onNovember 14, 2008. It provides Investment Management and Advisory Services toinvestors based within and outside India and has Mutual Funds, AIFs and PortfolioManagement Services business.
Disclaimer:
This releasehas been issued on the basis of internal data, publicly available informationand other sources believed to be reliable. The information contained in thisdocument is for general purposes only and not a complete disclosure of everymaterial fact. The Stocks (if any) mentioned herein is for explaining theconcept and shall not be construed as an investment advice to any party. Theinformation / data herein alone is not sufficient and shouldn’t be used for thedevelopment or implementation of an investment strategy. It should not beconstrued as investment advice to any party. All opinions, figures, estimatesand data included in this article are as on date. The article does not warrantthe completeness 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. The Scheme being an index scheme follows a passive investment techniqueand shall only invest in Securities comprising one selected index irrespectiveof the market conditions. Investments in securities market are subject tomarket risks, read all relevant documents carefully.
Mutual Fundinvestments are subject to market risks, read all scheme related documentscarefully.
For further details contact:
Rohini Kute
Head, Corporate Communication,
Motilal Oswal Financial Services
Mobile: 9820196838
Mail: rohini.kute@motilaloswal.com