Name: Motilal Oswal Nifty 500 Index Fund
Brand: Motilal Oswal Mutual Fund

Question 1

What is the investment objective of Motilal Oswal Nifty 500 Index fund?

Accepted Answer

The Scheme seeks investment return that corresponds (before fees and expenses) to the performance of the Nifty 500 Index, subject to tracking error.

Question 2

How is Nifty 500 Index constructed? How often will the index be rebalanced?

Accepted Answer

Nifty 500 Index is constructed by selecting the top 500 companies listed on NSE based on full market capitalization. The individual constituents are subsequently assigned weights based on their float-adjusted market capitalization. This index undergoes a rebalancing process twice a year, specifically in the months of March and September.

Question 3

Is Nifty 500 index fund actively or passively managed?

Accepted Answer

The Motilal Oswal Nifty 500 Index fund is a passively managed fund aiming to track/replicate the performance of Nifty 500 Index. This strategy allows investors to gain exposure to ~92% of the Indian equity market.

Question 4

What are the advantages of investing in Motilal Oswal Nifty 500 Index fund?

Accepted Answer

Broadest Market Exposure: The Nifty 500 index provides exposure to the top 500 companies within a single fund, effectively reflecting India's listed firms and covering more than 90% of India’s listed universe.
  Exposure to Large, Mid, and small caps: The Nifty 500 provides a balanced mix of large, mid, and small-cap stocks, with a greater emphasis on large caps. This diversification across market caps helps to participate in the growth potential of companies of various sizes, enhancing overall portfolio diversification
  Well-Diversified Portfolio: The Fund offers exposure across 21 sectors of the Indian economy. The top 10 stocks account for 37.5% holding in the index indicating lower stock concentration. The balanced distribution on stock & sector level helps reduce concentration risk.

Question 5

Which is a better investment, NIFTY 50 or NIFTY 500 Index fund?

Accepted Answer

The primary distinction lies in the number of constituents: Nifty 50 comprises 50 companies, while Nifty 500 encompasses 500 companies making the Nifty 500 more diversified index. While Nifty 50 exclusively includes large-cap stocks, Nifty 500 covers the spectrum of large, mid, and small-cap stocks.
  Nifty 50 encompasses 14 sectors, whereas Nifty 500 spans across 21 sectors *.Therefore, for investors seeking broader exposure and a comprehensive India- focused investment strategy, Nifty 500 can be a preferable choice, presenting broader sector coverage and a diversified portfolio in comparison to the Nifty 50 index.

Question 6

How can an investor invest in Nifty 500 Index Fund?

Accepted Answer

An investor can invest online in Motilal Oswal Nifty 500 Index Fund - like any other Motilal Oswal Mutual fund by visiting motilaloswalmf.com
  Below are the steps to invest in Nifty 500 Index Fund:

1.	Visit Motilal Oswal Mutual Fund website at: www.motilaloswalmf.com
  2.	Navigate to the Mutual Funds section and select the Nifty 500 Index Fund
  3.	Click on the "Invest" option and choose the desired investment amount and mode(SIP or Lumpsum)
  4.	Provide your KYC details(PAN number and bank details) to complete the investment
Alternatively, an investor can also get in touch with his Mutual Fund Distributor or SEBI Registered Intermediary to invest in Motilal Oswal Nifty 500 Index Fund.

Question 7

What is the tax liability on gains arising out of investing in Nifty 500 Index Fund?

Accepted Answer

As per Income Tax Act, all domestic equity mutual funds attract taxation of 'Indian Equity' i.e., Equity Taxation. The gains for a holding period of less than one year are treated as short-term capital gains and for more than 1 year is treated as long-term capital gains. It is recommended to consult tax advisors for detailed information.

Question 8

What is the minimum application amount in Motilal Oswal Nifty 500 Index Fund?

Accepted Answer

The minimum application amount for the Nifty 500 Index Fund is as follows:
  •	Lumpsum: Rs.500 / - and in multiples of Re 1 / - thereafter
  •	SIP: Rs. 500 and in multiples of Re 1 / - thereafter

Question 9

Does the Nifty 500 Index fund allow for STP, SIP, and SWP?

Accepted Answer

Yes!  STP's, SIP's and SWP's are allowed for investments in Motilal Oswal Nifty 500 Index Fund.

Question 10

Is there any entry or exit loads associated with the Nifty 500 Index fund?

Accepted Answer

There is no entry load applicable In the Motilal Oswal Nifty 500 Index Fund. If redeemed after 15 days from the date of allotment, there is no exit load. However, if redeemed on or before 15 days from the date of allotment, a 1% exit load applies.

Question 11

Who can invest in the Nifty 500 Index fund?

Accepted Answer

Investors across all age groups and tax status are allowed to invest in Nifty 500 Index Fund. However, Index funds are usually preferred by risk-averse investors. Before deciding to invest, investors should speak to their financial advisor for advise.

Question 12

Are there any taxes on dividends received from the Nifty 500 Index fund ?

Accepted Answer

As per Income Tax Act, all domestic equity mutual funds attract taxation of ‘Indian Equity’ i.e., Equity Taxation. The gains for a holding period of less than 1 year are treated as short-term capital gains and for more than 1 year is treated as long-term capital gains. Additionally, it's important to note that this scheme only offers a growth plan and does not provide an Income Distribution Cum Capital Withdrawal plan. It is recommended to consult tax advisors for detailed information.

Motilal Oswal Nifty 500 Index Fund

What is Nifty 500 Index?

5 Reasons to Choose Nifty 500 Index over Nifty 50 Index

Better long-term returns

Lesser long-term volatility

High market coverage

Wider size coverage

Efficient diversification

Nifty 500 Index offered better historical long-term returns

Want to Know more about the Nifty 500 index?

Fund Info

Performance

Periodic Returns

Portfolio

Tracking Difference

Product Label

Downloads

Fund Name

Latest AUM

Date of Allotment

Portfolio Turnover Ratio

Benchmark

Total Expense Ratio

Entry Load

Tracking Error

Investment Objective

Type Of Scheme

Exit load

Methodology of calculating sale price

Index Methodology of calculating sale price

Fund Managers

Swapnil Mayekar

Want to Know More

Advantages of Investing In the Indian Equity Market

What is the investment objective of Motilal Oswal Nifty 500 Index fund?

How is Nifty 500 Index constructed? How often will the index be rebalanced?

Is Nifty 500 index fund actively or passively managed?

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