Mutual Fund News : Motilal Oswal Mutual Fund introduces Motilal Oswal 5 Year G-Sec Fund of Fund

Publish Date:

Motilal Oswal Mutual Fund has launched Motilal Oswal 5 Year G-Sec Fund of Fund.

It is an open-ended fund of funds scheme investing in Motilal Oswal 5 Year G-Sec ETF.

The investment objective of the Scheme is to generate returns by investing in units of Motilal Oswal 5 Year G-Sec ETF. However, there can be no assurance or guarantee that the investment objective of the Scheme would be achieved.

Under normal circumstances, Motilal Oswal 5 Year G-Sec Fund of Fund will hold an allocation of 95% to 100% of its assets in Units of Motilal Oswal 5 Year G-Sec ETF, and 0% to 5% of its assets in Units of liquid/ debt schemes, Debt, Money Market Instruments, G-Secs, Triparty repo, Reverse Repo, units of Liquid and Debt schemes of Motilal Oswal Mutual Fund.

As per the Scheme Information Document, Motilal Oswal 5 Year G-Sec Fund of Fund would follow a passive investment strategy and will predominantly invest in units of Motilal Oswal 5 Year G-Sec ETF.

The AMC/ Underlying Scheme does not make any judgments about the investment merit of Nifty 5 yr Benchmark G – Sec Index nor will it attempt to apply any economic, financial or market analysis.

The Scheme shall invest all of its funds in units of Motilal Oswal 5 Year G-Sec ETF, except to meet its liquidity requirements. The scheme would also invest in units of Liquid/ debt schemes, debt and money market instruments as stated in the asset allocation table

Motilal Oswal 5 Year G-Sec Fund of Fund’s performance will be benchmarked against Nifty 5 yr Benchmark G-sec index.

It will be managed by Mr Abhiroop Mukherjee.

The NFO opens for subscription on September 24, 2021, and closes on September 30, 2021.

The fund’s NAV is priced at Rs 10/- per unit during the NFO period. On allotment, the value of each unit of the Scheme would be approximately equal to 1/100th of the value of Nifty 5 yr Benchmark G-Sec Index.

The minimum subscription amount is Rs 500 and in multiples of Re 1 thereafter.

The fund offers Regular Plan and Direct Plan having only Growth Option.