Motilal Oswal Files Draft SID for Motilal Oswal BSE Select IPO ETF

Motilal Oswal Asset Management Company Limited has recently submitted the scheme information deed (SID) with the capital market regulator, the Securities and Exchange Board of India (SEBI), for the new scheme Motilal Oswal BSE Select IPO ETF. Motilal Oswal BSE Select IPO ETF is an open-ended scheme replicating/tracking the BSE Select IPO Total Return Index.

The units are intended to be listed on Stock Exchange(s) to ensure liquidity via the secondary market. These units can be bought and sold on all trading days on the National Stock Exchange of India Ltd. (NSE), where the Scheme is planned to be listed.

Investment Objective

The investment objective of Motilal Oswal BSE Select IPO ETF is to deliver returns that, before expenses, closely mirror the total returns of the securities represented by the BSE Select IPO Index, while allowing for some tracking error. However, it is important to note that there is no guarantee or assurance that the scheme will achieve its investment objective.

Motilal Oswal BSE Select IPO ETF: Asset Allocation

The asset allocation pattern of the Scheme is designed with specific indicative allocations of total assets. The constituents of the BSE Select IPO Index will make up a minimum of 95% and a maximum of 100% of the total assets. Debt and money market instruments, including cash and cash equivalents, will constitute between 0% to 5% of the total assets.

Money Market Instruments encompass Commercial papers, Commercial bills, Treasury bills, TREPS, Government securities with unexpired maturity up to one year, call or notice money, certificate of deposit, Bills Rediscounting, usance bills, and other similar instruments as specified by the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) from time to time.

Also Read: Passive Mutual Fund Folios Outpace Active Equity for the First Time

Benchmark

The Scheme’s performance will be measured against the BSE Select IPO Total Return Index. Since the Scheme is an Exchange Traded Fund (ETF) that mainly invests in securities included in the BSE Select IPO Index, this index serves as a suitable benchmark. The Total Return Index (TRI) version will be utilised to evaluate the Scheme’s performance.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Mutual Fund Investments are subject to market risks, read all the related documents carefully before investing.