Motilal Oswal Launches NFO for Nifty India Defence Index Fund
Motilal Oswal Mutual Fund has announced the launch of a new fund offering under its Thematic Fund category, titled the Motilal Oswal Nifty India Defence Index Fund. This open-ended fund aims to mirror the total returns of the securities represented by the Nifty India Defence Total Return Index, before expenses.
Why Defence?
According to Nomura research, the Defence sector highlights a significant opportunity for India’s defence sector, estimating a pipeline of USD138 bn over FY24-FY32F. As India continues to prioritizenational security and technological advancement, investors are presented with a unique opportunity to participate in this strategic growth. The recent stellar performance this sector can be attribute to various changes in government policies and prioritizing the defence sector. Government of India has put import embargo on 4600+ defence item by Dec 2027 to reduce imports and increase defence manufacturing in India, moving towards ‘Atmanir bhar Bharat’(self-reliance). Government is also actively aiming to increase exports of defence goods and services which is estimated to double in coming 3-4 years according to Nomura Research.
According to market experts, companies in this sector have improved their balance sheets and also their profitability through the continued increase in exports and increase in Defence expenditure by the government. This makes investing in the India Defence Index Fund an attractivei nvestment proposition.
Investment Strategy and Asset Allocation
The fund adopts a passive investment strategy by investing in constituents of the Nifty India Defence Total Return Index. It predominantly allocates its assets to equity schemes focusing on stocks within the special situations theme.
Target Investors and Risk Profile
Investors with a high-risk appetite interested in the special situations theme are encouraged to consider the Motilal Oswal Nifty India Defence Index Fund, with a recommended investment horizon of five years or more. The fund entails a very high level of risk.
Fund Details and Options
The fund benchmarks itself against the Nifty India Defence Total Return Index and is managed by Swapnil Mayekar and Rakesh Shetty. The New Fund Offer (NFO) subscription period runs from June 10 to June 24, with subsequent reopening for continuous sale and repurchase within five business days from the allotment date. The fund offers systematic investment solutions like SIP and SWP to accommodate flexible investment planning. The minimum subscription amount is ₹500, with increments in multiples thereafter.
Investors can choose between Regular Plan and Direct Plan options, each offering Growth and Income variants.For more information or to invest in the Motilal Oswal Nifty India Defence Index Fund, visit their official website.
