Motilal Oswal Mutual Fund is launching an NFO of a new category of open-ended equity-index mutual fund scheme for investors named “Motilal Oswal Nifty Microcap 250 Index Fund”. Micro-cap stocks are below large, medium and small-cap stocks and represent the 250 stocks beyond the Nifty 500. The index represents about 2.9% of the total NSE market capitalisation of the listed stock universe.
The NFO is open for subscription from June 15th, and will end on June 29th, 2023. Scheme will re-open for continuous Sale and Repurchase within 5 Business Days from the date of allotment of units under NFO. Subscriptions can be made starting at Rs. 500 and in multiples of Re 1/- thereafter. Both a Regular Plan and a Direct Plan are available.
About Motilal Oswal Mutual Fund
Motilal Oswal Mutual Fund is a leading AMC with over 600 active locations around the country. They offer a wide range of financial services and products including but not limited to retail brokerage, private wealth management, investment banking, currency broking as well as the distribution of institutional asset management. Motilal Oswal has a diverse spectrum of financial services under its umbrella, with over 9 lakh registered clients and over 2400 office premises.
MOAMC launched its first mutual fund in 2010, the same year MOFSL’s net worth surpassed Rs. 1000 crore. In 2011, MOAMC was the first AMC to ring the NASDAQ Stock Market opening bell. MOAMC surpassed $1 billion in PMS assets and equity mutual funds in 2016, a feat accomplished in record time. MOAMC expanded its operations to the international market later that year, when it founded the Motilal Oswal India Fund (MOIF). MOAMC’s equity assets surpassed $2.5 billion within a year, representing a 150% increase in just one year. Motilal Oswal Mutual Fund currently has a portfolio with a net AuM of Rs. 30619.97 Crore. – Motilal Oswal Mutual Fund has an AUM of Rs 30,619 crores and offers 34 schemes across multiple categories, including 14 equity, 5 debt, and 5 hybrid mutual funds.
Motilal Oswal Nifty Microcap 250 Index Fund – NFO Detail
| Type of Offer | NFO (New Fund Offer) |
| Fund House | Motilal Oswal Mutual Fund |
| Name of the Fund | Motilal Oswal Nifty Microcap 250 Index Fund |
| Type of Scheme | Open-ended |
| Category of Scheme | Index Fund |
| NFO Starts | 15-June-2023 |
| NFO Ends | 29-June-2023 |
| NFO Unit Price | Rs 10 per unit |
| Minimum Investment | Rs. 500 |
| Plans | Regular, Direct |
| Options | Growth |
| Entry Load | Not Applicable |
| Exit Load | 1% |
| Investment Manager | Motilal Oswal Asset Management Company Limited |
| Fund Manager | Mr. Swapnil MayekarMr. Rakesh Shetty (for Debt component) |
Motilal Oswal Nifty Microcap 250 Index Fund NFO – Scheme Objective
The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by Nifty Microcap 250 TRI, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.
Motilal Oswal Nifty Microcap 250 Index Fund NFO – Who Can Invest?
This product is suitable for investors who are seeking*:
- Capital appreciation over the long term.
- Return that corresponds to the total returns of Nifty Microcap 250 Total Return Index, subject to tracking error.
How Will the Scheme Allocate Its Asset
- 95-100% in Motilal Oswal Nifty Microcap 250 Index Fund.
- 0-5% in Units of liquid schemes and/or money market instruments.
Where Will the Scheme Invest?
- The scheme would invest in the securities comprising the Nifty Microcap 250 Total Return Index in the same proportion (weights) as in the index and track the benchmark index. The scheme may also invest in the money market instruments, in compliance with regulation to meet liquidity requirements.
- Subject to the Regulations and other prevailing Laws as applicable, the corpus of the Scheme can be invested in any (but not exclusively) of the following securities:
- Equity and Equity related instruments including derivatives
- Units of Liquid Schemes and/or Money Market Instruments (including reverse repos, Commercial Deposit, Commercial Paper, Treasury Bills and TREPS) permitted by SEBI/RBI or in alternative investment for the call money market as may be provided by RBI to meet the liquidity requirements.
- Derivatives including Index Futures, Stock Futures, Index Options and Stock Options etc. and such other derivatives instruments permitted under Regulations.
- Any other instruments as may be permitted by RBI/SEBI under prevailing laws from time to time.
- The Scheme may take an exposure to equity derivatives of constituents of the Underlying Index when securities of the Index are unavailable, insufficient or for rebalancing at the time of change in Index or in case of corporate actions, for a short period of time. The total exposure to derivatives would be restricted to 20% of the net assets of the Scheme.
- The Scheme may use derivative instruments such as stock futures and options contracts, warrants, convertible securities, swap agreements or any other derivative instruments that are permissible or may be permissible in future under applicable regulations and such investments shall be in accordance with the investment objective of the Scheme.
Motilal Oswal Nifty Microcap 250 Index Fund NFO – SID (Scheme Information Document)
Please click here to read the SID (Scheme Information Document) of this upcoming NFO scheme.
How to Invest?
Visit this page on the AMC website for further detail and investment.
Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing.
