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Motilal Oswal Mutual Fund (MOMF) today announced the launch of its latest new fund offer ‘Motilal Oswal Nifty Capital Market Index Fund’. This fund will be offering exposure to the growth potential of stocks listed under the capital market theme in India. The index comprises 15 companies which also form a part of the Nifty 500.

Key Fund Details:

NFO Period: 26^th November 2024 to 10^th December 2024

Investment 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 Capital Market Total Return Index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved.

Benchmark: Nifty Capital Market Total Return Index.

Portfolio Strategy: High-growth funds designed for investors with a very high-risk appetite

Investor Profile: The fund is suitable for investors who are seeking long-term capital growth and returns that corresponds to the returns of the Nifty Capital Market Total Return Index, subject to tracking error.

The Nifty Capital Market Total Return Index has delivered 96.9% returns in last 1 year & 31.9% in past 3 years (Data as on October 31, 2024). While this theme exhibits strong performance potential, it may also experience higher volatility. Interestingly, between 2010 and 2024 exchange volume and turnover have grown by 52% annually and considering current monthly average, it may reach to 95,000 Lakh Cr by FY2025.

According to a research by Motilal Oswal Asset Management Company India’s financial markets are witnessing exponential growth, fueled by rising domestic savings, enhanced digitization and increasing retail participation. Over the last eight years, the number of demat accounts has surged at an annualized rate of 29% CAGR, reaching 17.5 crore accounts as of September 2024. Simultaneously, monthly SIP inflows have soared from Rs.3,698 crore in 2016 to over Rs.24,509 crore in 2024, reflecting growing investor confidence. Furthermore, India led global markets in 2024 with 209 IPOs, raising Rs.64,000 crore at a 46% CAGR since FY19. Despite these advancements, only 8 crore Indians invest in the stock market, presenting significant untapped potential.

 Pratik Oswal, Chief of Business Passive Funds, Motilal Oswal Asset Management Company Ltd said, “India’s capital market has grown exponentially since its inception. Technological and operational ease with on the go investment, T+1 settlement time, UPI & IMPS based transfer on real-time basis has further boosted investor participation. However, there is a huge untapped potential with only 8 Crore stock market investors compared to India’s larger population. Globally, in 2024, India will be leading in IPO issuances, with $8 billion raised between FY 19 and FY 24. Similarly, investment through mutual funds, PMS, & AIF is also rising at 21% p.a., cementing the strong market performance. Motilal Oswal Nifty Capital Market Index Fund is a step toward spearheading and riding this growth wave. The fund invests in companies integral to the capital markets ecosystem, including stock brokers, depositories, wealth management firms, exchanges, and mutual fund companies”.

The fund will be managed by Mr. Swapnil Mayekar (for Equity Component) and Mr. Rakesh Shetty (for Debt Component). The funds are suitable for investors who are seek Long-term capital growth.

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