MOTILAL OSWAL NASDAQ 100 FUND OF FUND

Motilal Oswal Nasdaq 100 Fund of Fund

  • Motilal Oswal Nasdaq 100 Fund of Fund is a passive fund investing in units of Motilal Oswal Nasdaq 100 ETF (Underlying Scheme).

  • The Motilal Oswal Nasdaq ETF (Underlying Scheme) has a 7+years track record and the Fund of Fund just enables to invest smaller amounts with higher liquidity.

  • The NASDAQ 100 Index is an equity index with the top 100 domestic and international non-financial securities listed on the NASDAQ stock exchange in the United States.

  • The Fund of Fund provides exposure to equity in the NASDAQ 100 Index United States and hence diversify the asset allocation for an investor.

About Underlying Scheme

  • India’s 1st US Equity based ETF

    1. Rupee denominated investment
    2. At investor level it does not fall under foreign
  • Investment

    1. Passive Investing: no discretion with fund manager
    2. Transparent portfolio
  • Taxation: Taxed as ‘investment other than equity oriented fund’ (i.e. debt taxation with/without indexation benefits)

  • Tracking error as low as 0.14% (Against the benchmark with NASDAQ 100 Total Return Index)

  • Expenses of the underlying Scheme –Upto 1.50%

Performance

1 Year 3 Year 5 Year Since Inception
CAGR (%) Current Value of investment of Rs 10,000 CAGR (%) Current Value of investment of Rs 10,000 CAGR (%) Current Value of investment of Rs 10,000 CAGR (%) Current Value of investment of Rs 10,000
MOFN100 23.08 12308 17.29 16136 18.79 23656 22.73 47386
NASDAQ 100 (INR) 25.55 12555 19.45 17041 20.79 25710 24.63 53276
Nifty 50 (Additional Benchmark) 1.91 10191 10.24 13396 11.90 17546 9.52 19953
NAV on 31st Oct: 489.199825 397.4555 303.1647 206.7931 103.2365

Date of inception: 29-Mar-11. Source of Index return is as per Thomson Reuters and in line with published NAV of the Fund as on 31st October 2018. In case, the start/end date of the concerned period is non business date (NBD), the NAV of the previous date is considered for computation of returns. The NAV per unit shown in the table is as on the start date of the said period. Past performance may or may not be sustained in the future. Performance is for Growth option. This scheme is currently managed by Mr. Swapnil Mayekar. He has been managing this fund since 10-Aug-2015;

Underlying Asset Class – NASDAQ 100 Index

  • The Index constitutes of the top 100 domestic and international non-financial securities listed on The NASDAQ stock exchange (based on market capitalization).

  • One of the greenest major large cap U.S. equity benchmark indices.

  • Long-established holdings include companies that have a legacy of leadership and innovation.

  • Does NOT contain securities of financial companies.

  • Technology stocks have evolved from creating new and niche consumer products to a group of companies upon which every industry and sector have become dependent. The companies within the NASDAQ 100 represent the true innovators of the modern economy on a global basis.

  • Today, Apple, Microsoft, Google, Facebook and other NASDAQ 100 components have become the global leaders of business.

Investors are strictly advised to invest in line with their asset allocation and diversification requirements and avoid getting carried away basis past performance. The Stocks mentioned above are the constituents of Nasdaq 100 Index are used to explain the concept. It should not be used for development or implementation of an investment strategy.

The Index - Industry Constituents

Industry No of companies Aggregate Market Value ($ Billion) % of Market Value
Information Technology 35 3530 44
Communication Services 18 1810 23
Consumer Discretionary 17 1274 16
Healthcare 20 733 9
Consumer Staples 6 496 6
Industrials 7 161 2
Total 103 8005 100

Data as on 31st October 2018.
Source: NASDAQ Economic Research based on the Industry Classification Benchmark (ICB) maintained by FTSE and Dow Jones Index.

NASDAQ 100 Index: Relative Performance

Index Performance (USD)
Period NASDAQ 100 S&P 500 Dow Jones
1 Year 11.5 5.3 7.44
3 Year 14.42 9.25 12.44
5 Year 13.57 9.07 10.06
10 Year 17.96 10.84 10.41
Since Inception 12.32 8.36 9.19

*Inception date of NASDAQ 100 Index 31st Jan 1985

Index Performance (INR)
Period NASDAQ 100 S&P 500 Dow Jones
1 Year 27.71 20.61 23.05
3 Year 19.26 13.86 17.18
5 Year 19.81 13.07 14.10
10 Year 22.82 15.40 14.96
Since Inception 18.65 14.18 15.05
Price/Earnings Dividend Yield Volume Index Market Cap Currency
23.21 1.06 268.11 Million $ 8 Trillion USD

Source: Bloomberg; Data as on 31st October 2018.
Index past performance is not indicative of future results and is not representative of any particular investment product. Does not include dividends. Component true market values are used. Returns
are calculated in USD & INR. (by converting with the exchange rates).
Past performance may or may not be sustained in future. MOAMC does not guarantee or assure returns.

About The Scheme

      • Rs. 500 and in multiples of Re.1/- thereafter (Minimum Installment – 12)
      • Rs. 500 and in multiples of Re.1/- thereafter (Minimum Installment – 12)
      • Rs. 500 and in multiples of Re.1/- thereafter (Minimum Installment – 12)
      • Rs. 1500 and in multiples of Re.1/- thereafter (Minimum Installment – 4)
      • Rs. 6000 and in multiples of Re. 1/- thereafter (Minimum Installment – 1)

Other Consideration

  • Investors are advised to independently assess the Risk of US equity and the INR – USD currency rate. Please do not invest basis past performance track record as it may not sustain in future. Decline in US equity markets especially technology companies which have already run up significantly in recent years is a risk and appreciation of rupee vs USD is also a risk to the performance of this fund.

  • Some of key purposes of investing in this fund could be:

    1. Need for currency exposure other than INR; especially USD because for many investors one or more of their investment goals could be in USD denominated spends e.g. saving for international education or planning for foreign vacations.
    2. Diversification and investment into uncorrelated or less correlated assets.
    3. Benefiting from the prowess and growth of truly global businesses in technology, healthcare and other frontier sectors.
    4. Some of these companies maybe benefiting from India or emerging markets as a target market for their businesses but since they are listed only on NASDAQ there is no alternative other than to invest there even if it is to benefit from growth in these very markets.
  • Please consult your financial advisor to understand your ideal asset allocation and possible fitment of this fund into the same.

  • Motilal Oswal NASDAQ 100 FOF is created as a facility to enable retail investors to invest in the NASDAQ 100 ETF. The ETF has been in existence since 7 years and considering operational as well as execution complexity related to ETFs this FoF is being offered as an enabler.

Risk Factors

Key Risk Factors
Key Risk factors

● Statutory Details: Constitution: Motilal Oswal Mutual Fund has been set up as a trust under the Indian Trust Act, 1882. Trustee: Motilal Oswal Trustee Company Limited. Investment Manager: Motilal Oswal Asset Management Company Ltd. (CIN: U67120MH2008PLC188186) Sponsor: Motilal Oswal Financial Services Ltd.

● NASDAQ Disclaimer - NASDAQ®, and Nasdaq- 100 Index®, are registered trademarks of Nasdaq, Inc. (which with its affiliates is referred to as the “Corporations”) and are licensed for use by Motilal Oswal Asset Management Company Ltd. The Product(s) have not been passed on by the Corporations as to their legality or suitability. The Product(s) are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE PRODUCT(S).

Note: Investors are requested to note that they will be bearing the recurring expenses of the fund of fund scheme, in addition to the expenses of underlying scheme in which the fund of fund scheme makes investments.

Name of the Scheme This product is suitable for investors who are seeking*
Type of Scheme: An open ended fund of fund scheme investing in Motilal Oswal Nasdaq 100 ETF

Motilal Oswal Nasdaq 100 Fund of Fund (MOFN100FOF)


Motilal Oswal Nasdaq 100 ETF(MOFN100)



● Long term capital appriciation
● Return that corresponds generally to the performance of the scheme, Motilal Oswal Nasdaq 100 ETF (MOFN100) through investment in units of MOFN100


●return that corresponds generally to the performance of the NASDAQ 100 Index, subject to tracking error
●investment in equity securities of NASDAQ 100

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