Motilal Oswal Mutual Fund has recently introduced two exchange-traded funds (ETFs), namely the Motilal Oswal Nifty Realty ETF and the Motilal Oswal Nifty Smallcap 250 ETF. These ETFs aim to offer investors exposure to specific segments of the market while providing opportunities for growth and diversification.
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The new fund offers (NFOs) of these schemes are available till March 15, 2024.
The Motilal Oswal Nifty Realty ETF is designed as an open-ended scheme that tracks the Nifty Realty Total Return Index.
Its investment objective is to correspond to the total returns of securities represented by the index, subject to tracking error.
Investors in this scheme can gain exposure to the Nifty Realty Total Return Index through an ETF structure, with no entry or exit loads.
The minimum application amount during the New Fund Offer (NFO) and ongoing basis is ₹500, with units listed on the National Stock Exchange of India (NSE) within five days from the closure of allotment.
On the other hand, the Motilal Oswal Nifty Smallcap 250 ETF is also an open-ended scheme, replicating the Nifty Smallcap 250 TR Index.
Its investment objective aligns with providing total returns closely corresponding to the index, subject to tracking error.
Similar to the Realty ETF, there are no entry or exit loads for investors, with a minimum application amount of ₹500 during the NFO and ongoing basis.
The units of this scheme are also listed on the NSE within five days from the closure of allotment.
A look at returns of some of the ETFs
| Scheme | 1-year | 2-year | 3-year |
|---|---|---|---|
| CPSE Exchange Traded Fund | 88.72% | 49.43% | 46.73% |
| Nippon ETF PSU Bank BeES | 79.77% | 60.37% | 43.5% |
| Kotak PSU Bank ETF | 79.84% | 60.36% | 43.41% |
| Nippon ETF Infra BeES | 55.59% | 27.99% | 23.13% |
| ICICI Pru Midcap Select ETF | 55.03% | 20.96% | 17.91% |
| Motilal Oswal NASDAQ 100 ETF | 55.26% | 20.41% | 16.67% |
| Motilal MOSt Oswal Midcap 100 ETF | 53.35% | 28.16% | 24.69% |
| SBI - ETF Nifty Next 50 | 52.56% | 20% | 18.67% |
| Nippon ETF Junior BeES | 52.54% | 19.96% | 18.62% |
| Mirae Asset Nifty Next 50 ETF | 52.36% | 19.9% | 18.65% |
| Nippon ETF Dividend Opportunities | 46.82% | 26.41% | 24.75% |
(Source: Moneycontrol)
Investment considerations
Both schemes come with standard risk factors associated with mutual fund investments, including market fluctuations and potential loss of principal.
It's important for investors to consider these risks along with their investment goals and risk tolerance before making any investment decisions.
Considering the nature of these ETFs, investors seeking exposure to the realty or small-cap segments of the market may find these schemes attractive.
However, as with any investment, thorough research and consultation with financial advisors are recommended to ensure alignment with individual financial objectives and risk profiles.
While ETFs can offer diversification benefits and potential for growth, investors should always assess their suitability within the context of their overall investment strategy.
(Edited by : Amrita)
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