Motilal Oswal Mutual Fund Launches a New Nifty Realty ETF

Motilal Oswal Nifty Realty ETF (NFO), an open-ended Other ETF category scheme by Motilal Oswal Mutual Fund, aims to provide returns that mirror the total returns of the Nifty Realty Total Return Index, before accounting for expenses. This New Fund Offer (NFO) was launched on March 13, 2024, with a minimum subscription amount of Rs. 500. The NFO closure date is March 15, 2024. There is no load fee associated with this scheme.

Investment Objective

The investment objective of the Motilal Oswal Nifty Realty ETF is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the Nifty Realty Total Return Index, subject to tracking error. However, there is no guarantee or assurance that the investment objective of the scheme will be achieved. This Motilal Oswal Nifty Realty ETF’s NFO is suitable for investors who are seeking returns that correspond to the performance of the Nifty Realty TR Index and long-term capital growth.

Funds Allocation

The Motilal Oswal Nifty Realty ETF attempts to invest in the components of the benchmark index using a passive investing approach. Subject to tracking inaccuracy, the method seeks to produce returns that are comparable to the benchmark. Offering investment returns comparable to the Nifty Realty TR Index’s total returns, excluding fees and expenses, and accounting for tracking error is the investment strategy.

The plan seeks to invest between 95% and 100% of its constituents in the Nifty Realty Index. Additionally, the plan would make investments in money market instruments and units of liquid schemes, with a 0%–5% range. In accordance with the asset allocation table, the plan would also invest in units of debt, money market instruments, and liquid/debt schemes.

Benchmark

The performance of the Motilal Oswal Nifty Realty ETF will be benchmarked with the Nifty Realty TR Index.

Fund Managers

• Mr. Swapnil Mayekar (Fund Manager), Age: 39 years, Educational Qualification: M. Com, over 13 years of experience.
• Mr. Rakesh Shetty (Fund Manager – Debt Component), Age: 41 years, Educational Qualification: B. Com, over 14 years of experience.

About Nifty Realty Index

The growth in foreign investor inflows into the real estate industry was a major factor in the real estate stock market’s boom, with Nifty Realty emerging as the best-performing index in 2023. The Nasdaq-listed investment management firm Colliers reports that during the six-year period from 2017 to 2022, India saw foreign institutional inflows into real estate totaling USD 26.6 billion, a threefold increase over the previous six-year period. The research states that 81 percent of the real estate investments made between 2017 and 2022 were from outside sources. After PSU banks, the index has increased by 125% in only a single year, making it the most valuable sector. The benchmark Nifty, however, increased by more than 26% in a single year. Nearly in the past five years, the index has increased by nearly 288%, while the Nifty has increased by 103%. Since March 29, 2023, when it reached its 52-week low of Rs 370.65, the Realty index has likewise increased by more than 130%.

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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.