Introduction of India Defence Index Fund
Over the last several decades the Indian mutual fund industry has seen a tremendous growth. A lot of investors who first invested in mutual funds between the years 1960 and 1970 have since gone into becoming top market players in their respective areas.
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Weโre back with a thought-provoking and informative blog article that can assist you in making the future financial decisions. This time, weโve created the business plan for the โMotilal Oswal Nifty India Defence Index Fundโ.
This article will explain whatโs included in the program for funds and how it functions.
Everything You Should know about Motilal Oswalโs Nifty India Defence Index Fund โ NFO
Motilal Oswal Nifty India Defence Index Fund was created through Motilal Oswal Mutual Fund, is an index fund with an open-ended structure which follows the Nifty India Defence Total Return Index. By investing in businesses that form of the index, this fund is seeking to replicate the success that is the Indian defense sector. The minimum investment needed for joining is Rs.500 per investor. This scheme is ideal for investors looking for a return which is, once accounting is made for tracking errors and capital growth over the long term, corresponds to the returns of Nifty Indian Defence Total Return Index. The scheme does not have an Exit Limit.
For more information about the asset allocation of the fund and previous performance, if there was any, as well as other factors that affect decisions, take a look at this blog.
Motilal Olswal Nifty India Defence Index Fund โ NFO Overview
The period of investment of the Scheme is scheduled to run from July 13, 2024 up to June 27, 2024. The scheme is categorized as highly risky. There is no guarantee the investment objective of the scheme is achieved.
The scheme invests in Equity and other instruments that are linked to equity, for example derivatives. The Scheme can purchase cash market products, liquid schemes, as well as mutual fund units by using its capital. The scheme does not have an entrance fee.
Overview of the Fund
The Motilal Oswal Nifty India Defence Index Fund has an AUM of Rs.53,720 crores (as as of 13 June 2024) The minimum amount for subscription will be Rs.500.
| Start Date | 13 June 2024 |
| End Date | 27 June 2024 |
| Rating VRO | โ |
| Ratio of expenses | NA |
| Exit load | 1percent if it is redeemed after 15 calendar days. |
| AUM (Fund size) | NA |
| Lock-in | No Lockin |
| Stamp Duty | 0.005 percent (From July 1st, 2020) |
| Benchmark | Nifty India Defence Total Return Index |
| Min. investment | Rs.500 |
| Risk | Very High |
| Gains from short-term capital (STCG) | Taxes are charged at 15 percent if you redeem prior to 1 year. |
| Capital gains over the long-term (LTCG) | After one year, pay the LTCG tax at 10% of all returns of more than Rs1 lakh during a fiscal year. |
The Goal of the Fund
The Scheme aims to offer results that, with no errors in tracking, are comparable to the returns on all securities as reflected in the Nifty India Defence Total Return Index. But, there is no guarantee or assurance that the investment objectives of the scheme are met.
The allocation of assets ( percent of net assets) of the portfolio will be in the following manner:
| Instruments: Types Instruments | The Minimum allocation ( percent of net assets) | Max Allocation ( percent of net assets) | Risk Profile |
| The components of the Nifty India Defense Index | 95 | 100 | Very High |
| Instruments of the Money Market and a variety of liquid schemes | 0 | 5 | Low |
Peers of Motilal Olswal Nifty India Defence Index Fund
| Equity/Large Cap Fonds | 1Y Return | 3Y Return | AUM (Cr) |
| Franklin India Opportunities Fund-Growth | 74.44% | 30.94% | 3,933.36 |
| SBI Equity Minimum Variance Fund Regular Growth | 28.15% | 16.81% | 190.17 |
| Bandhan Innovation Fund Regular-Growth | โ | โ | 767.76 |
Risk Factors of These Funds
- The Underlying Indexโs shares will be invested the Scheme in the same proportion as the securities that comprise the Index. Thus, the Scheme will be susceptible to the risks of the relevant Underlying Index.
- This is the risk associated when you are exposed too much to specific issuers, stocks or market segments.
- It is important to note that the Plan is not monitored.ย Due to its index-linking feature, the Scheme may be impacted by a general decline of the Indian markets, which could affect its index.
Past performance of Sectoral, Equity and Thematic/ Index Funds
| Equityor Index Funds | NAV (Rs) | Annualized Return (1Y) | Return/Risk |
| Aditya Birla Sun Life Nifty Midcap 150 Index Fund | 23.37 | 56.19% | Very High Risk |
| The Nippon Nifty is a mid-cap of the Nippon India N Index Direct-Growth of Fund | 23.89 | 55.60% | Very High Risk |
| UTI Nifty200 Momentum 30 Index Fund Direct-Growth | 24.33 | 68.17% | Very High Risk |
Motilal Olswal Nifty India Defence Index Fund NFO Who is eligible to invest?
This fund is the perfect choice for you if youโre seeking a return that when accounting for tracker errors and capital growth that is long-term is comparable to the returns of Nifty India Defence Total Return Index. Nifty Indices of India Defense Total Return.
Motilal OSwal Nifty India Defence Index Fund NFO Management of Growth Funds
- The Mr. Swapnil Mayekar
- Rakesh Shetty
Conclusion
The scheme falls under the category of very high-risk and plans to invest in equity and other instruments that are linked to equity, including derivatives and purchase of money market instruments, and Units of Liquid Schemes, as well as Mutual Fund Units. Always consider the impact of your Financial Goals, Risk tolerance and risk tolerance. before you make your investment decisions.
Disclaimer Disclaimer: Disclaimer: This NFO analysis is only to inform it should not be taken as investment guidance. Always conduct research and consult with a financial adviser.
Frequently Answered Questions
+How do I find the Motilal Oswal Nifty India Defence Index Fund?
The Motilal Oswal Nifty India Defence Index Fund is an index fund open to the public that follows the Nifty India Defence Total Return Index. It invests in companies operating within the Indian defense industry to reproduce its results.
+What can I do to put my money into the Motilal Oswal Nifty India Defence Index Fund NFO?
You can make an investment directly in Motilal Oswal India Nifty Index Fund NFO NFO with an investment minimum of Rs.500. The period of subscription runs beginning on June 13th, 2024 through June 27 2024.
+What are the risk factors to this fund? Motilal Oswal Nifty India Defence Index Fund?
The fund is classified as high risk principally due to its participation in the defense sectorโs equity companies. The fund is subject to market risk and the performance of its index it relies on.
+What is the tax impact of what is the tax implications for Motilal Oswal Nifty India Defence Index Fund?
Capital gains that are short-term (STCG) can be taxed as 15% when you redeem them within a year, whereas capital gains that are long-term (LTCG) will be taxed 10% when gains that exceed Rs1 lakh during the financial year following one year.
+Who should invest into this fund? Motilal Oswal Indigo Nifty Defense Index Fund?
Investors looking to make sure their returns are in line to the performance of the Nifty Indices of Total Return in India seeking long-term capital growth and with a high risk tolerance, should think about placing an order in this fund.
