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- Mumbai 13 Jul 2022
Motilal Oswal Mutual Fund Announces The Launch Of Motilal Oswal S&P BSE Financials Ex Bank 30 Index Fund
Motilal Oswal Mutual Fund announces the launch of MotilalOswal S&P BSE Financials ex Bank 30 Index Fund
Mumbai, 13 July 2022:Motilal Oswal Asset Management Company (MOAMC) has announced the launch ofMotilal Oswal S&P BSE Financials ex Bank 30 Index Fund; An open-endedscheme replicating/tracking the total returns of S&P BSE Financials ex Bank30 Total Return Index.
The NFO opens on 14th July 2022 and closeson 22ndJuly 2022
The fund will bethe first of its kind passive fund that aims to provide exposure to thefinancial services sector, excluding banks. The index will include top 30 non-bankingfinancial stocks from S&P BSE 250 LargeMidcap Total Return Index with amaximum stock weight capped at 15%. The index will be rebalanced semi-annuallyin June and December. Currently, the index includes stocks of Housing financecompanies, NBFCs, Exchanges, Asset Management Companies, Insurance, CardPayment & Fintech etc.
As of June 2022,the index constituents features renowned names such as Housing DevelopmentFinance Corp, Bajaj Finance Ltd, Bajaj Finserv Ltd, HDFC Life Insurance CompanyLtd, SBI Life Insurance Company Ltd., Etc. The top 10 stocks constitute nearly72% weight in the index. In terms of industry breakup- NBFCs account formajority with weight close to 28%, followed by Life Insurance at 21% andHousing Finance companies accounting for 18%. The index is largely skewedtowards large cap companies accounting for 75% of the weight, while mid cap companiesaccounts for the rest.
S&P BSEFinancials Ex-Bank 30 Index has outperformed the S&P BSE 250 LargeMidCap indexover the last 15 years, on total returns basis. The index has noted CAGR of15.3% vs S&P BSE 250 LargeMidCap Index 14%, outperforming the broad marketby more than 1%. It has also been observed that the index tends to do wellduring a bull & recovery cycle.
EDS Table
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- Financials ex Bank: An untapped opportunity
In India, exceptbanks, the rest of the industries within the financial services sectors arehighly under-penetrated when compared globally. These financial servicescompanies operate in the business of Consumer Credit (Personal loans, Creditcards, Home loans), Insurance (Life & General) and Capital market (Exchanges,Credit rating agencies). With rapid urbanization & rising income levels,more people are expected to tap into these financial services, leading to thegrowth of these companies.
Navin Agarwal, MD &CEO, Motilal Oswal Asset Management Company Ltdsaid, “With an objective to bring new investment opportunity throughinnovative products, we built a new concept to leverage wealth creationopportunities beyond just banks within financial services sector. With India’surban population set to grow to 50% from the current 35%, the migration willtrigger transfer of money from old assets (term deposits) to new assets(capital markets & insurance) and the rise in consumption economy i.e. highdemand for credit. As a result of this, the financial service sector will standto benefit”
Pratik Oswal, Head of Passive Funds, Motilal OswalAsset Management Company Ltd said, “Motilal Oswal S&P BSE FinancialServices ex Bank 30 Index Fund offers investor first of its kind opportunity toinvest in the non-banking financial sector. The fund will invest in new age financialscompanies from Housing finance companies, NBFCs, Exchanges, Asset ManagementCompanies, Insurance, Card Payment & Fintech etc. The Fund will enableIndian investors to capitalize on the growth of financialization of assets,shifting consumer mindset from saving to investing and benefit from thecompanies that will gain from the consumption theme.”
During NFO investors can invest minimum Rs. 500/- and inmultiples of Re. 1/- thereafter.
On an Ongoingbasis: Lumpsum and SIP – Rs 500/- and in multiplesof Re 1/- thereafter. Investor can purchase/redeem units of the Scheme throughfinancial advisor or by log-in to www.motilaloswalmf.com.
1. Source/Disclaimer: S&P BSE; Performance as of close of 15-Jun-07 to 31-May-22.Performance results have many inherent limitations and no representation isbeing made that any investor will, or is likely to achieve. Past performancemay or may not be sustained in future. The above graph is used to explain theconcept and is for illustration purpose only and should not used fordevelopment or implementation of an investment strategy.
2. Source/Disclaimer: S&P BSE; Performance as of Close of 01-Jun-2012 to 31-May-2022;Performance results have many inherent limitations and no representation isbeing made that any investor will, or is likely to achieve. The above table isused to explain the concept and is for illustration purpose only and should notused for development or implementation of an investment strategy. The SIPamount, tenure of SIP, expected rate of return are assumed figures for thepurpose of explaining the concept of advantages of SIP investments. The actualresult may vary from depicted results depending on scheme selected. It shouldnot be construed to be indicative of scheme performance in any manner. Theabove are not scheme SIP returns, but simulation of index SIP returns. Pastperformance may or may not be sustained in future.
Please note: The otherFunds managed by the Fund Managers can be viewed on www.motilaloswalmf.com
**Disclaimer**This release has beenissued on the basis of internal data, publicly available information and othersources believed to be reliable. The information contained in this document isfor general purposes only and not a complete disclosure of every material fact.The Stocks (if any) mentioned herein is for explaining the concept and shallnot be construed as an investment advice to any party. The information / dataherein alone is not sufficient and shouldn’t be used for the development orimplementation of an investment strategy. It should not be construed asinvestment advice to any party. All opinions, figures, estimates and data includedin this article are as on date. The article does not warrant the completenessor accuracy of the information and disclaims all liabilities, losses anddamages arising out of the use of this information. The statements containedherein may include statements of future expectations and other forward-lookingstatements that are based on our current views and assumptions and involveknown and unknown risks and uncertainties that could cause actual results,performance or events to differ materially from those expressed or implied insuch statements. Readers shall be fully responsible/liable for any decisiontaken on the basis of this article. Mutual Fund investments are subject tomarket risks, read all scheme related documents carefully.
EDS Table
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- This product is suitable for investors who are seeking*
- Scheme
- S&P BSE Financials ex Bank 30 Total Return Index
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- · Return that corresponds to the performance of S&P BSE Financials ex Bank 30 Total Return Index subject to tracking error. · Long term capital growth.
About Motilal Oswal AssetManagement Company:
Motilal Oswal Grouppossesses legacy in equities for over 3 decades. Motilal Oswal Asset ManagementCompany Ltd. (MOAMC) is registered with SEBI as the Investment Manager for MotilalOswal Mutual Fund. It was incorporated on November 14, 2008. It providesInvestment Management and Advisory Services to investors based within andoutside India and having AIF’s, PortfolioManagement Services business, ETFs and Mutual Funds.
MOAMC is one of thepioneers of PMS business with over 17+ years of track-record. It is also one ofthe pioneers of passive funds in India through ETFs way back in 2010, Motilal OswalNifty 50 ETF, Motilal Oswal Midcap 100 ETF, Motilal Oswal Nasdaq 100 ETF – theonly offshore ETF and have exclusive rights for Nasdaq.
MOAMC follows a uniqueinvestment philosophy, ‘Buy Right; Sit Tight’ which means buying qualitycompanies at a reasonable price and Sit Tight to ride their growth cycle for along period of time.
For furtherdetails contact:RohiniKuteHead,Corporate Communication,
Motilal Oswal Financial Services