Motilal Oswal Nifty India Defence Index Fund: For those who favor the defense sector and wish to invest in its stocks, Motilal Oswal AMC has introduced the Motilal Oswal Nifty India Defence Index Fund NFO. Investors can start investing in this NFO from June 13, 2024, and it will close on June 24, 2024. The benchmark for this fund will be the Nifty India Defence Index TRI.
Motilal Oswal Nifty India Defence Index Fund NFO Details
- Fund Name: Motilal Oswal Nifty India Defence Index Fund
- Scheme Category: An open-ended fund replicating/tracking the Nifty India Defence Total Return Index
- Scheme Type: Index Fund
- Open Date: June 13, 2024
- Close Date: June 24, 2024
- Plans: Regular Plan and Direct Plan
- Options (in each plan): Growth
- Benchmark: Nifty India Defence Total Return Index
- Minimum Application Amount: ₹500 and in multiples of ₹1 thereafter
- Minimum Redemption Amount: ₹500 and in multiples of ₹1 thereafter
- Entry Load: NIL
- Exit Load: 1% exit load if redeemed on or before the 15th day from allotment. No exit load if redeemed after 15 days from allotment.
- Scheme Riskometer: Very High
- Benchmark Riskometer: Very High
- Fund Managers: Swapnil Mayekar, Rakesh Shetty
- Expense Ratio: To be decided later
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Stocks Included in the Nifty India Defence Index
The Nifty India Defence Index includes a total of 15 stocks, with the top 10 listed below along with their weights in the index:
| Company Name | Weight (%) |
|---|---|
| Hindustan Aeronautics Ltd. | 21.69 |
| Bharat Electronics Ltd. | 20.72 |
| Solar Industries India Ltd. | 13.90 |
| Bharat Dynamics Ltd. | 9.16 |
| Cochin Shipyard Ltd. | 8.87 |
| Mazagon Dock Shipbuilders Ltd. | 6.18 |
| Astra Microwave Products Ltd. | 4.69 |
| Data Patterns (India) Ltd. | 4.57 |
| Garden Reach Shipbuilders & Engineers Ltd. | 2.62 |
| MTAR Technologies Ltd. | 2.24 |
Objective of the Motilal Oswal Nifty India Defence Index Fund
The aim of the Motilal Oswal Nifty India Defence Index Fund is to provide capital growth to investors by tracking the performance of the Nifty India Defence Index. The main goal of this fund is to invest in stocks of companies in India’s defense and aerospace sectors, allowing investors to benefit from the potential growth in this sector. The key objectives include:
- Diversification: Provide portfolio diversification by investing in several major companies in the defense sector.
- Dividends: Earn potential dividends from defense sector companies.
- Long-term Growth: Achieve capital growth by focusing on the long-term growth potential in the defense and aerospace sectors.
- Risk Management: Reduce risk by tracking an index and making broad investments.
In summary, the Motilal Oswal Nifty India Defence Index Fund aims to offer investors the opportunity for focused sector investment, enabling them to benefit from the growth of India’s defense sector.
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Comparison of Returns: Nifty 50 TRI vs Nifty India Defence TRI
| Year | Nifty 50 TRI | Nifty India Defence TRI |
|---|---|---|
| 2019 | 13.5% | 2.3% |
| 2020 | 16.1% | 11.5% |
| 2021 | 25.6% | 60.9% |
| 2022 | 5.7% | 66.8% |
| 2023 | 21.3% | 91.1% |
| 2024 | 4.2% | 59.7% |
Nifty India Defence TRI SIP Returns for 1 Year, 3 Years, 5 Years
The table below shows the SIP (Systematic Investment Plan) returns for Nifty India Defence TRI for investments of ₹10,000 per month over 1 year, 3 years, and 5 years.
| Period | Returns | Amount Invested (INR) | Market Value (INR) |
|---|---|---|---|
| 1 Year | 198.0% | 1,20,000 | 2,27,026 |
| 3 Years | 103.4% | 3,60,000 | 12,88,544 |
| 5 Years | 77.5% | 6,00,000 | 35,56,606 |
How to Apply for Motilal Oswal Nifty India Defence Index Fund NFO
You can apply for the Motilal Oswal Nifty India Defence Index Fund NFO through any mutual fund platform such as Zerodha Coin, Groww, Paytm Money, etc., as well as through the Motilal Oswal AMC website. This fund can be particularly attractive for investors looking for high-risk and high-return opportunities.
Disclaimer: Mutual fund investments are subject to market risks. Please consult your financial advisor before investing.
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