Motilal Oswal Nifty MidSmall IT and Telecom Index Fund: NFO Details

Oswal Motilal, the Nifty MidSmall IT and Telecom Index vehicle will replicate and track the Nifty MidSmall IT and Telecom Total Return Index. It will be an open-ended vehicle. Subject to tracking error, the scheme's investment goal is to provide returns that, before expenditures, match the total returns of the stocks as represented by the Nifty MidSmall IT and Telecom Total Return Index. The Nifty MidSmall IT and Telecom Total Return Index will serve as the scheme's benchmark. Rakesh Shetty and Swapnil Mayekar will oversee the program.

Details of the NFO: Motilal Oswal Nifty MidSmall IT and Telecom 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. IT and Telecom 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 Nifty MidSmall IT and Telecom Total Return Index . The scheme aims to achieve returns equivalent to the benchmark subject to tracking error. The scheme would also invest in units of Liquid schemes and money market instruments as stated in the asset allocation table.

• Securities Lending: Subject to the SEBI Regulations as applicable from time to time, the Scheme may, participate in securities lending. Investment by AMC/Sponsor in the Scheme: For investments as may be required under Regulation 28(4) of the Regulations, the AMC may invest in the Scheme during the New Fund Offer (NFO) or continuous offer period subject to the SEBI (MF) Regulations. However, AMC shall not charge any fees on such investments.
• Investment of Subscription Money: The Mutual Fund may deploy NFO proceeds in TREPS before closure of NFO period. However, AMCs shall not charge any investment management and advisory fees on funds deployed in TREPS during the NFO period. The appreciation received from investment in TREPS shall be passed on to investors. Further, in case the minimum subscription amount is not garnered by the Scheme during the NFO period, the interest earned upon investment of NFO proceeds in TREPS shall be returned to investors, in proportion of their investments, alongwith the refund of the subscription amount.
• Portfolio Turnover: Portfolio Turnover is defined as the lower of sales or purchase divided by the average corpus during a specified period of time. The Scheme, being an open ended Scheme, it is expected that there would be a number of subscriptions and redemptions on a daily basis. However, it is difficult to measure with reasonable accuracy the likely turnover in the portfolio of the Scheme.

Why Invest in Motilal Oswal Nifty MidSmall IT and Telecom Index Fund – Direct (G)?

• The Motilal Oswal Nifty MidSmall IT and Telecom Index Fund – Direct (G) offers a unique opportunity for investors seeking exposure to the fast-growing IT and telecom sectors. 
• This fund replicates the Nifty MidSmall IT and Telecom Total Return Index, which includes a diversified portfolio of mid and small-cap companies in these sectors. The fund follows a passive investment strategy, aiming to match the returns of its benchmark, subject to tracking error. 
• This makes it an ideal choice for investors looking for long-term growth potential in India's tech-driven industries without the need for active management. The fund's open-ended nature ensures liquidity, allowing investors to enter or exit easily. 
• With a low minimum investment requirement of ₹500, it's accessible to a broad range of investors. Additionally, the absence of an entry load and a short exit load period of just 15 days further reduces costs for investors.

Overall, investing in this fund provides a cost-effective way to gain diversified exposure to the high-potential mid-small cap IT and telecom stocks, offering growth prospects aligned with India's expanding digital infrastructure.

Risks - Motilal Oswal Nifty MidSmall IT and Telecom Index Fund – Direct (G)

• The Scheme is subject to the principal risks described below. Some or all of these risks may adversely affect Scheme’s NAV, trading price, yield, return and/or its ability to meet its objectives.
• The Scheme is not actively managed. Since the Scheme is linked to index, it may be affected by a general decline in the Indian markets relating to its underlying index. The Scheme as per its investment objective invests in Securities which are constituents of its underlying index regardless of their investment merit. The AMC does not attempt to individually select stocks or  to take defensive positions in declining markets.
• 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.

Who should invest in Motilal Oswal Nifty MidSmall IT and Telecom Index Fund?

• Investors seeking exposure to the rapidly growing IT and telecom sectors in India, especially within the mid and small-cap space, may find the Motilal Oswal Nifty MidSmall IT and Telecom Index Fund – Direct (G) appealing.
• This fund is ideal for those who prefer a passive investment strategy, as it aims to replicate the performance of the Nifty MidSmall IT and Telecom Total Return Index.
• With a minimum investment of just ₹500, it's accessible to retail investors. The absence of entry load and a low exit load structure (only applicable within 15 days) makes it suitable for long-term investors looking for growth potential in these dynamic sectors.