Invest in one of the popular indices

Introducing Motilal Oswal NIFTY 50 &
NIFTY NEXT 50 Index Funds

NFO
Opens: 03rd DEC 2019
Closes: 17th DEC 2019
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Why Motilal Oswal Index Funds & advantages of investing

All index funds are unique and differ in risk and return. Our goal is to allow investors to choose the funds that match their risk appetite and return expectations.

Large-cap Funds performance vs Benchmark

Scheme Name 1 Year 2 Year 3 Year 5 Year 7 Year 10 Year
Large-cap Funds Category Average 11.6 5.3 12.2 7.8 12.3 10.8
Top 10 Large- Cap Average (Based on 5 Year Returns) 13.5 6.8 14.0 9.3 13.5 12.8
Indices
Nifty 50 TRI 12.5 9.3 15.5 8.4 12.4 10.7
Nifty Next 50 TRI 5.4 -1.3 10.8 10.4 15.1 12.7
  • Nifty 50 TRI has outperformed the large cap funds category average for the 1, 2, 3 and 5 year period

  • ETFs + index funds have grown from INR 5000 crore to over 1.5 lakh crore over last 5 years

Source: MFI Explorer; MOAMC Internal Research    Data as on 29th November 2019.

Percentage of Funds Outperformed by the Index
Fund Category Comparison Index 1 Year (%) 3 Year (%) 5 Year (%) 10 Year (%)
Indian Equity Large-Cap S&P BSE 100 77 83 66 61

Source: S&P Dow Jones Indices LLC, Morningstar, and Association of Mutual Funds in India. Data as of 28 June 2019.
Disclaimer: The above graph is used to explain the concept and is for illustration purpose only and should not be used for development or implementation of an investment strategy. Past performance may or may not be sustained in future.

Why Large-caps?

Large scale of operations

Low marginal cost

Capital Efficiency

Leverage at competitive costs

Matured Businesses

Stability and Visibility

Large Sized Balance Sheets

Exposure to capital intensive businesses

Index Funds vs ETFs- Major Differences

Features Exchange Traded Fund (ETFs) Index Fund
Net Assets Value (NAV) Real Time End of the day
Liquidity Provider@ Authorised Participants (APs) on stock exchange + Fund itself Only by Fund
Portfolio Disclosure Daily Monthly
Intraday Trading Possible if investor has required inventory of units Not Possible
Cost effectiveness Each investor bears their own transaction cost Transaction costs are spread across the fund
Holding format Compulsory in Demat form Physical + Demat
Investment decision Controlled by investor as investor can suggest the price/NAV at which they want to transact Physical + Demat

@ In case of ETFs, the Scheme offers units for subscription/ redemption directly with the Mutual Fund in multiple of creation unit size to Authorized Participants (APs)/ Large Investors only. Investor can buy/ sell ETF units in cash segment on secondary market of exchanges where it is listed in multiple of 1unit. AMC may appoint APs for providing liquidity on exchanges.

Frequently Asked Question

  • Passive investing is an investing strategy that tracks a market-weighted index. It broadly refers to a buy-and-hold portfolio strategy for long-term investment horizons, with minimal trading in the market.
  • Investing in Index funds and ETFs are the most common form of passive investing.
  • An index fund is a type of mutual fund which constructs its portfolio by tracking the composition of a standard market index such as the Nifty 50 or the Sensex. The fund not only invests in stocks which constitute the benchmark index but also the same proportion.
  • For example – a rise of 1% in the index will lead to a 1% increase in the fund and vice versa. There are numerous indexes (Nifty50, Nifty 500, Nifty Smallcap 150) and many others.
  • An index fund is a diversified equity fund delivers returns in line with the index it tracks. For example – a midcap 150 index fund will track the nifty midcap 150 index.
  • The fund manager simply replicates the portfolio of the index in quantity, stocks and proportion. The fund manager has no discretion over stock selection/ strategy of the mutual fund and so the fund has no fund manager bias.