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Below are Views On Motilal Oswal AMC announces launch of 5 year G-sec ETF

This comes after their successful launch of India’s First “Digital first” NFO with S & P 500 Index Fund

Mumbai, 23 November 2020: Motilal Oswal Asset Management Company (MOAMC) has announced the launch of India’s first-of-its-kind Motilal Oswal 5 Year G-sec ETF. Known for launching an array of passive funds, this ETF by Motilal Oswal AMC is set to provide excellent asset allocation opportunity. For ETF fans, this fund is a an addition to Motilal Oswal ETF suite which comprises of a Nifty 50 ETF, Nifty Midcap 100 ETF, NASDAQ 100 ETF and the upcoming 5-year G-Sec ETF – all of them effective for asset allocation.

The NFO will be open on November 23, 2020 and shall close on December 2, 2020.

The Motilal Oswal 5 year G-Sec ETF seeks investment return that closely corresponds (before fees and expenses) to total returns of the securities as represented by the ‘Nifty 5 Yr. Benchmark G-Sec Index’, subject to tracking error. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

The ETF offers investors an attractive low cost alternative to fixed deposit since it has practically no default risk, no lock-in, and historically attractive pre- and post-tax returns.

“The launch Motilal Oswal 5 Yr G-Sec ETF add to our repertoire of investor centric products and deepens our product offering for investor community. This ETF is key part of our endeavor to offer building blocks for asset allocation to investors.” said Navin Agarwal, MD & CEO Motilal Oswal Asset Management Company Ltd.

“The Motilal Oswal 5 year G-Sec ETF will invest in underlying constituent of Nifty 5 Yr Benchmark G-sec Index. With the approx. duration of 4 years, the index falls in a sweet spot between short duration and long duration G-Sec Indices.” said Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company Ltd. “With safety being a primary need of debt investors today, the ETF fits well for investors who are looking for safety along with better tax advantages compared to traditional fixed income products.”

With the launch of this ETF, investor will get easy and low cost access to 5 Yr G-Sec. The minimum application amount during NFO is Rs 500 On ongoing basis investor can purchase/redeem units of ETF on stocks exchanges.

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