Motilal Oswal MF launches Nifty200 Momentum 30 ETF, Index Fund

Hyderabad Motilal Oswal Asset Management Company (MOAMC) has launched Motilal Oswal Nifty200 Momentum 30 ETF (Exchange Traded Fund) and Motilal Oswal Nifty200 Momentum 30 Index Fund. These are open ended schemes replicating or tracking the performance of Nifty200 Momentum 30 Index.

The new fund offer (NFO) of the scheme will close for subscription on February 4.

The Nifty200 Momentum 30 index selects top 30 companies with highest six month and 12 month momentum as defined in index methodology. The constituents need to be part of Nifty 200 index and should also be available for trading in F&O segment with a minimum listing history of one year. The maximum weight of stock is capped at 5 per cent and index gets rebalanced semi-annually in June and December.

The Nifty200 Momentum 30 index has outperformed the Nifty 200 TRI on a risk-adjusted returns basis over the last 15 years. In fact the index has outperformed the Nifty 200 TRI in 12 out of last 15 calendar years. The average 3-year rolling returns of the Nifty200 Momentum 30 TRI are higher than Nifty 200 TRI by 5.90 per cent at 16.7 per cent.

The found house said that the minimum application amount for Index Fund is Rs 500 and in multiples of Re 1 thereafter.

On exchange, investors can buy or sell units of the scheme in lot of 1 unit and in multiples thereafter. If buying directly from the mutual fund company, buy or sell units of the scheme in unit size of 7,000 units and in multiples thereafter.

"Motilal Oswal AMC is one amongst the largest AMCs in India in the international funds segment and only fund house to have passive funds across major key segments. With an objective to bring products in accordance to the evolving needs of the investors, we will be introducing a slew of the funds in the factor investing segment. Out first product in this category will be the Motilal Oswal Nifty200 Momentum 30 ETF and Index Fund which will be suitable for investors looking for exposure to factors. We aspire to build unique brand positing by establishing ourselves as a fund house to drive the factor investing category in India," said Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company Ltd.