Invest in the Defence Mutual Fund with just Rs 500: Check if you are planning to invest in India’s Defence Sector!

Rakesh Deshmukh
/ Categories: Knowledge, MF
Invest in the Defence Mutual Fund with just Rs 500: Check if you are planning to invest in India’s Defence Sector!

Indian investors are investing in the Defence sector. Are you? Investors must keep this fund on their Wishlist. Complete details inside.

Motilal Oswal Nifty India Defence Index Fund, offered by Motilal Oswal Mutual Fund, is an open-ended index fund designed to replicate the performance of the Nifty India Defence Total Return Index. This fund invests in constituent companies of the index, aiming to reflect the growth of the Indian defence sector. Investors can start with a minimum investment of Rs 500. The New Fund Offer has opened on June 13, 2024, and will end on June 24, 2024. There is no entry load, but a 1 per cent exit load is applicable if redeemed within 15 days of allotment.

Objectives

The Motilal Oswal Nifty India Defence Index Fund aims to achieve returns that closely mirror the total returns of the securities in the Nifty India Defence Total Return Index, before expenses, while accounting for tracking errors. However, it's important to note that there is no assurance or guarantee that the scheme will achieve its investment objectives.

This New Fund Offer (NFO) of the Motilal Oswal Nifty India Defence Index Fund is suitable for investors looking to align their returns with those of the Nifty India Defence Total Return Index, taking into consideration potential tracking errors, and aiming for long-term capital growth.

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Fund Allocation Details

The Motilal Oswal Nifty India Defence Index Fund allocates its investments across two main types of instruments. The majority of its assets, ranging from 95 per cent to 100 per cent of its net assets, are invested in constituents of the Nifty India Defence Index. This category is classified under a very high-risk profile, reflecting the fund's focus on the volatile defense sector.

Additionally, a small portion of the fund's assets, up to 5 per cent of its net assets, may be allocated to units of liquid schemes and money market instruments. These instruments are categorized under a low-risk profile, providing stability and liquidity to the fund's overall portfolio.

Benchmark

The performance of the Motilal Oswal Nifty India Defence Index Fund will be evaluated against the performance of the Nifty India Defence Total Return Index, which serves as its benchmark.

Fund Managers

Swapnil Mayekar, aged 39, holds a Master of Commerce degree in Finance Management. He has been managing funds since the inception of Motilal Oswal Asset Management Company Ltd. in March 2010. Swapnil possesses more than 13 years of extensive experience in fund management and product development. Prior to joining Motilal Oswal, he served as a Research Associate at Business Standard from August 2005 to February 2010, enriching his expertise in financial research and analysis.

Rakesh Shetty, aged 42 and holding a Bachelor of Commerce degree, oversees the debt component at Motilal Oswal Asset Management Company Limited. With more than 14 years of experience, he has a strong background in trading across equity and debt segments, managing Exchange Traded Funds (ETFs), corporate treasury operations, and banking. Prior to joining Motilal Oswal, Rakesh was actively involved in equity and debt ETFs, as well as in developing customized indices and financial products at a firm specializing in capital markets. His expertise spans various facets of financial markets, making him a valuable asset in managing diversified investment portfolios.

Disclaimer: The article is for informational purposes only and not investment advice.

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