Motilal Oswal Mutual Fund Filed Draft for Diversified Equity Flexicap Passive FoF

Motilal Oswal Mutual Fund has filed draft papers with SEBI to introduce the Motilal Oswal Diversified Equity Flexicap Passive Fund of Funds. This is an open-ended fund of funds scheme, with a face value of ₹10 per unit during the New Fund Offer (NFO). The scheme falls under the diversified fund of funds (domestic) category.

Investment Objective

The scheme is to generate long-term capital growth by investing mainly in passive funds such as ETFs and index funds. These funds will provide exposure across large-cap, mid-cap, and small-cap segments. However, there is no guarantee that the stated objective will be achieved.

Benchmark and Liquidity

The performance of the fund will be measured against the Nifty 500 Total Return Index (TRI). Subscriptions and redemptions can be made on all business days at the applicable NAV. Redemption proceeds are to be paid within 3 working days from the date of request, as per SEBI regulations.

Minimum Investment and Options

The minimum investment during NFO and on an ongoing basis is ₹500 and in multiples of ₹1 thereafter. SIPs can be started with as little as ₹100 on a daily frequency or ₹500 monthly. The fund will offer 2 plans: Regular and Direct, with a Growth option available under each.

Load Structure

There will be no entry load. An exit load of 1% applies if units are redeemed within 15 days of allotment. Redemptions made after 15 days will not attract any exit load. The load will also apply to switches between schemes within Motilal Oswal Mutual Fund.

Asset Allocation and Management

The scheme will allocate 95-100% of its assets to domestic passive equity ETFs and index funds. Up to 5% may be placed in debt and money market instruments. The fund managers are Swapnil Mayekar and Rakesh Shetty, who oversee multiple ETF and index products under the AMC.

Read more: Flexi Cap Fund NFOs This Week (Sep 22–26): JioBlackRock, DSP Nifty500 Flexicap ETF!

Conclusion

The draft scheme, once approved, will provide investors an option to access diversified exposure across equity market segments through a passive investment route.

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.