Motilal Oswal Fund House is scheduled to launch a New Fund Offer (NFO) in a few days, Motilal Oswal Nifty 200 Momentum 30 Index Fund. Investors can subscribe to this fund from 21st Jan 2022 to 4th February 2022.
This fund is an open-ended scheme with Nifty 200 Momentum 30 TRI as its benchmark and aims to track its performance subject to tracking errors. The scheme does not guarantee minimum returns or achievement of the scheme objectives.
The fund requires a minimum of 95% investment in Constituents of Nifty 200 Momentum 30 Index and balance in Liquid schemes, debt schemes, and money market instruments (like reverse repos, Commercial Deposit, Commercial Paper, Treasury Bills, and Tri-Party Repos). The momentum stocks on the benchmark are selected based on their normalized momentum score. This score is determined based on 6-month and 12-month price adjusted for volatility.
Apart from this the scheme also aims to invest in derivative markets (Index Futures, Stock Futures, Index Options, Stock Options, etc.) and any other instrument permitted by SEBI from time to time. This increases the benefit of diversification at the same time spreading the risk of investment making it an ideal investment option for investors with a lower risk appetite.
The scheme falls under the category of passively managed funds. Since the fund tracks the performance of Nifty 200 Momentum 30, returns are more or less consistent with that of the index subject to tracking errors. The risk of this fund is quite high but the inherent benefit of diversification (available in any index fund) makes it a better investment option in comparison to equity funds in general.
The NFO is priced at Rs. 10 per unit and investors can invest in the fund with a minimum investment amount of Rs. 500 (in multiples of Re. 1 thereafter). Also, the fund does not have any entry load and the exit load of the fund is at 1% if the units are redeemed within 15 days of allotment.
The scheme allows the investors to have easy redemption of units at applicable NAV. An important point to note is that the scheme pays a penal interest of 15% p.a. or the relevant applicable rate if the redemption proceeds are not given within 10 days of receipt of the redemption request.
The scheme is available in direct plans as well as regular plans where investors can subscribe to the fund directly through the fund house or through a distributor respectively. Each plan offers a growth plan where the returns are reinvested in the fund ultimately resulting in higher returns for the investors.
| Scheme name | Motilal Oswal Nifty 200 Momentum 30 Index Fund |
| Type of Scheme | An open-ended index scheme investing in the composition of Nifty 200 Momentum 30 Index |
| Category of the scheme | Index fund |
| Benchmark | Nifty 200 Momentum 30 Index |
| Plan options | Regular planDirect plan Each plan has a growth option |
| Fund Manager | Mr. Swapnil MayekarMr. Abhiroop Mukherjee |
| Exit Load | 1% if redeemed within 15 days of allotment |
| Minimum Investment | During NFO: Rs. 500 and multiples of Re 1 thereafter Additional purchase: Minimum Rs. 500 and multiples of Re. 1 thereafter |
| NFO Period | 21 Jan – 04 Feb 2022 |
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