Motilal Oswal Nifty 500 ETF expected to list on NSE on October 6

They are influenced by market fluctuations, and transactions occur in real-time. Examples include industry ETFs, bond ETFs, and commodity ETFs.

The Nifty 500 Index includes a diverse range of stocks across 21 sectors, offering investors a valuable tool for mitigating concentration risk. Over the past three years, the Nifty 500 Index has demonstrated a decent performance, delivering an annualised return of 25 percent as of August 31, 2023. Historically, it has outperformed the Nifty 50 Index.

Despite its midcap and smallcap components, the Nifty 500 Index has shown either similar or lower risk (measured by standard deviation) compared to the Nifty 50 Index.

While the Motilal Oswal Nifty 500 ETF claims to offer an enticing investment opportunity, potential investors should keep in mind that there are no guarantees or assurances that the investment objective of the scheme will be achieved. The minimum application amount for this ETF is Rs 500 and in multiples of Re 1 thereafter.

The scheme benchmarks its performance against the Nifty 500 Total Return Index. Given that this is an exchange-traded fund (ETF) scheme, it will primarily invest in securities that constitute the Nifty 500 Index, making it a suitable choice for investors looking to track this particular index, experts say.

This scheme imposes no entry load, meaning there are no charges for investing. Furthermore, there is no exit load, providing investors with flexibility in managing their investments.

The fund managers are Swapnil Mayekar and Rakesh Shetty.

Under normal circumstances, the scheme's asset allocation primarily consists of constituents of the Nifty 500 Index, ranging from 95-100 percent of total assets. Additionally, it allocates up to 5 percent in units of liquid schemes and money market instruments, indicating a relatively low-risk component.