Motilal Oswal Mutual Fund (MOMF) has announced the launch of four new index funds aimed at investors looking for growth in mid and small-cap sectors.
The funds include:
Motilal Oswal Nifty MidSmall Healthcare Index Fund
Motilal Oswal Nifty MidSmall IT and Telecom Index Fund
Motilal Oswal Nifty MidSmall India Consumption Index Fund
Motilal Oswal Nifty MidSmall Financial Services Index Fund
These new fund offerings (NFOs) opened for subscription on October 29 and will remain available until November 6.
Recent research by Motilal Oswal Asset Management Company (MOAMC) highlights a trend in the market.
Over the past five years, mid-cap and small-cap companies have outpaced large-cap firms in growth rates. Mid-cap companies experienced profitability growth of 25.2%, while small-cap companies grew by 35.4%.
In comparison, large-cap companies recorded a growth of 22.1% during the same period.
Market capitalisation figures reflect this trend, with mid-cap companies growing by 25.7% and small-cap firms by 28.0%, while large-cap companies lagged at 19.1%.Lucknow Investment
These index funds cater to risk-tolerant investors looking for higher returns through exposure to the mid and small-cap sectors, which, while more volatile than their large-cap counterparts, present significant growth potential.
Prateek Agrawal, Managing Director and CEO of MOAMC, noted the rapid expansion of the Indian mutual fund industry.
"The AUM of the Indian MF Industry has grown from ₹9.16 trillion in 2014 to ₹64.97 trillion in July 2024," he said.
Agrawal expressed confidence in the long-term performance of mid and small-cap stocks, citing their faster growth compared to large-cap companies.
Pratik Oswal, Chief of Business Passive Funds at MOAMC, emphasised India❼growth potential in various sectors.
With over 2,100 fintechs operating in the country, he mentioned that India is poised to become one of the largest digital markets.Bangalore Investment
As consumer spending increases, sectors like healthcare, IT and telecom, and financial services are expected to grow significantly by 2025.
However, he cautioned that investments in these areas can be volatile, making them suitable for investors who can withstand market fluctuations.
Fund details
Motilal Oswal Nifty MidSmall Healthcare Index Fund: This open-ended fund aims to replicate the Nifty MidSmall Healthcare Total Return Index. It targets returns corresponding to the index, subject to tracking error.
Motilal Oswal Nifty MidSmall IT and Telecom Index Fund: Similar in structure, this fund tracks the Nifty MidSmall IT and Telecom Total Return Index with the same return objectives.
Motilal Oswal Nifty MidSmall India Consumption Index Fund: This fund aims to replicate the Nifty MidSmall India Consumption Total Return Index, targeting returns before expenses in line with the index.Kolkata Stocks
Motilal Oswal Nifty MidSmall Financial Services Index Fund: This fund tracks the Nifty MidSmall Financial Services Total Return Index, aiming for returns that correspond to the index before expenses.
Article Address： https://meherpurquickbazar.com/FM/151.html
Article Source：Admin88
Notice：Please indicate the source of the article in the form of a link。
