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Motilal Oswal Mutual Fund got here out with a brand new fund provide (NFO) on January 21, 2022 within the good beta-index-fund house. The fund will likely be open for subscription until February 04, 2022 and can monitor the Nifty200 Momentum 30 index. Listed here are the important thing particulars of the NFO.
Sensible beta is a fusion of lively and passive investing methods whereby an index is altered by deleting or knocking off one thing based mostly on a number of basic, technical or different filters. Globally, smart-beta merchandise have been round for a reasonably lengthy time frame however they’ve lately began to be a focus for Indian traders. This mode of investing is often known as ‘issue investing’ as a result of it depends on figuring out the important thing components after which establishing guidelines to pick out a portfolio of corporations utilizing these descriptors.
In regards to the technique
The fund will spend money on Nifty200 Momentum 30 Index, a portfolio of the highest 30 corporations throughout large- and mid-cap shares chosen based mostly on their Normalised Momentum Rating. The Momentum Rating for every inventory is predicated on current 6-month and 12-month worth returns, adjusted for volatility. The underlying index contains the shares weighted by their issue scores, with particular person inventory weight being capped at 5 per cent. It was largely dominated by three sectors – IT (27.31%), Monetary companies (11.09%) and Client items (10.92%) as of January, 2022.
On the efficiency entrance, a comparability of 5-year rolling returns of the Nifty200 Momentum 30 index with Nifty 200 index and Nifty 50 index for the previous 5 years exhibits that the momentum index has stayed forward of the mainstream indices by a substantial margin all through.
In regards to the AMC
Motilal Oswal Mutual Fund manages whole belongings price over Rs 36,500 crore (as of December, 2021). The fund home at present has 18 open-end fairness funds that collectively comprise belongings price over Rs 33,700 crore. Aside from the funds being launched, the fund home at present has 12 extra index funds and ETFs.
Additionally learn: Three questions you need to ask earlier than investing in an NFO
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