Motilal Oswal Nifty MidSmall India Consumption Index Fund – Direct (G) : NFO Details

Motilal Oswal Nifty MidSmall India Consumption Index Fund’s passive investing approach would yield returns comparable to the overall returns before fees and expenses, albeit it would be susceptible to tracking inaccuracy. The plan seeks to invest between 95% and 100% of the Nifty MidSmall India Consumption Index's constituents as well as between 0% and 5% in liquid schemes, debt schemes, and money market instruments.

Details of the NFO: Motilal Oswal Nifty MidSmall India Consumption Index Fund – Direct (G)

Investment Objective and Strategy

Objective:

The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by Nifty MidSmall India Consumption Total Return Index, subject to tracking error. 
However, there can be no assurance or guarantee that the investment objectives of the scheme will be achieved.

Investment Strategy:

The Scheme follows a passive investment strategy and seeks to invest in the constituents of Motilal Oswal Nifty MidSmall India Consumption Index Fund. The scheme aims to achieve returns equivalent to the benchmark subject to tracking error. The scheme would also invest in units of Liquid/ debt schemes, debt and money market instruments as stated in the asset allocation table. Subject to the Regulations and other prevailing Laws as applicable, the corpus of the Scheme can be invested in any (but not exclusively) of the following securities:

• Equity and Equity related instruments including derivatives.
• Units of Liquid Schemes and Money Market Instruments (including reverse repos, Commercial
• Deposit, Commercial Paper, Treasury Bills and Tri-Party Repos) permitted by SEBI/RBI or in
• alternative investment for the call money market as may be provided by RBI to meet the liquidity
• requirements.
• Derivative including Index Futures, Stock Futures, Index Options and Stock Options etc. and such
• other derivatives instruments permitted under Regulations.
• Mutual Fund units.
• Any other instruments as may be permitted by RBI/SEBI under prevailing laws from time to time.
• The investment restrictions and the limits are specified in the Schedule VII of SEBI Regulations which is mentioned in the section ‘Investment Restrictions’.

Risk associated with Motilal Oswal Nifty MidSmall India Consumption Index Fund

In the event that the asset allocation of the Scheme deviates from the ranges as provided in the asset allocation table in this SID, then the Fund Manager will rebalance the portfolio of the Scheme to the position indicated in the asset allocation table. However, if market conditions do not permit the Fund Manager to rebalance the portfolio of the Scheme then the AMC would notify the Board of the Trustee Company and the Investment Committee of the AMC with appropriate justifications.

Index Fund:

The Scheme being an index scheme follows a passive investment technique and shall only invest in Securities comprising one selected index as per investment objective of the Scheme. The Fund Manager would invest in the Securities comprising the underlying index irrespective of the market conditions. If the Securities market declines, the value of the investment held by the Scheme shall decrease.

Who should Invest in Motilal Oswal Nifty MidSmall India Consumption Index Fund?

Investors looking for passive exposure to the growing mid and small-cap consumption sector in India may find Motilal Oswal Nifty MidSmall India Consumption Index Fund appealing. It is ideal for those seeking long-term capital appreciation with minimal active management, as the fund tracks the Nifty MidSmall India Consumption Index. The scheme is suitable for investors with moderate risk tolerance, as it focuses on equities and related securities, which can be volatile. It also caters to individuals with a long-term investment horizon, as it offers a low-cost, diversified approach to capturing growth in India’s consumption-driven sectors.