Draft Filed with SEBI: Motilal Oswal Nifty Capital Market Index Fund

Introduction

Investors seeking long-term capital growth with low tracking error can consider the Motilal Oswal Nifty Capital Market Index Fund. This open-ended scheme aims to replicate the Nifty Capital Market Total Return Index and is ideal for those looking for passive investment strategies.

Objective of the Fund

The primary objective of the Motilal Oswal Nifty Capital Market Index Fund is to provide returns corresponding to the performance of the Nifty Capital Market Total Return Index, subject to tracking error. While the fund’s goal is to mirror the index as closely as possible, there is no guarantee of achieving this.

Category of Scheme

This scheme falls under the category of Index Funds, which replicate the performance of a specific index—in this case, the Nifty Capital Market Total Return Index. The fund invests in securities that make up the index, offering a broad exposure to the Indian capital market.

Fund Managers

The fund is managed by two experienced professionals:

• Swapnil Mayekar: With over 13 years of experience, Swapnil has been with Motilal Oswal since 2010 and manages multiple index funds.
• Rakesh Shetty: With 14 years of experience in equity and debt segments, Rakesh handles the debt component of the fund.

Investment Strategy

The fund employs a passive investment strategy, investing in securities of the Nifty Capital Market Total Return Index in the same proportion as the index. This strategy aims to minimize tracking errors and closely align the fund’s performance with the benchmark index. Additionally, the fund may invest in liquid schemes and money market instruments for liquidity management.

Special Features

1. Low Cost: Being a passive fund, management costs are lower compared to actively managed funds.
2. Liquidity: Investors can redeem their units on any business day at applicable NAV.
3. Systematic Investment Plan (SIP): Investors can invest through SIPs, making it easier to build wealth over time.

Benchmark

The fund’s performance is benchmarked against the Nifty Capital Market Total Return Index, ensuring that investors get returns in line with the broader capital market.

Key Takeaways

• Objective: Replicate the Nifty Capital Market Total Return Index.
• Scheme Type: Open-ended Index Fund.
• Fund Managers: Swapnil Mayekar and Rakesh Shetty.
• Investment Strategy: Passive, with minimal tracking error.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.