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Motilal Oswal Asset Management Company (MOAMC) has announced the launch of the Motilal Oswal Nifty Realty ETF and Motilal Oswal Nifty Smallcap 250 ETF.

The Motilal Oswal Nifty Realty ETF aims to provide investors an opportunity to participate in the growth potential of the realty sector and its India’s first ETF offering exposure to realty stocks. The Nifty Realty Index is designed to reflect the performance of Real Estate companies operating in residential and commercial projects. The index comprises 10 companies which also form a part of the Nifty 500.

Motilal Oswal Nifty Smallcap 250 ETF aims to provide investors an opportunity to participate in the growth potential of Smallcap stocks. The Nifty Smallcap 250 Index is designed to measure the performance of the top 250 companies, including those already present in the Nifty 500 constituents. The index is well-diversified, with its top 10 holdings accounting for only 14% against 56% in the Nifty 50 Index.

Both the ETFs are Open-ended funds and are expected to be listed on NSE on 21^st March 2024. The NSE exchange symbol for Motilal Oswal Nifty Realty ETF and Motilal Oswal Nifty Smallcap 250 ETF is MOREALTY and MOSMALL250 respectively, investors can use these to buy these ETFs on the exchange like any stock.

Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company Ltd said, “With the Motilal Oswal Nifty Realty ETF and Motilal Oswal Nifty Smallcap 250 ETF, we lead the charge in unlocking the untapped potential and opportunities of these distinctive investment category. We believe these segments hold immense potential and unique investment opportunities in the industry.”

He further added “Realty has been one of the most underperforming sector post-financial crisis. It is one of the largest employment generators. After RERA being implemented for a while, the sector may offer immense potential and unique investment opportunities that have been overlooked. Investors who are bullish on the Realty sector but find stock picking very risky, can use this ETF as an effective investment opportunity for long-term capital growth. Over the past 12 months, the Realty sector has recovered sharply from decadal underperformance. Smallcaps have a compelling track record of delivering relatively higher returns compared to its counterparts, albeit at a higher risk. Investors are encouraged to consult their financial advisors, a prudent allocation of 10-15% to this ETF may help enhance overall portfolio returns.”

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