Motilal Oswal Asset Management Company has filed draft papers with market regulator SEBI for Motilal Oswal Nifty 250 Index Fund, an open-ended scheme.

The scheme seeks investment return that corresponds to the performance of the Nifty LargeMidcap 250 Index, subject to tracking error.

For lump sum, the minimum application amount is ₹5,000 and in multiples of ₹1 thereafter. For investors looking for Systematic Investment Plan on weekly, fortnightly or monthly basis, the minimum amount is ₹1,000, while for quarterly and annual, it is ₹2,000 and ₹5,000, respectively.

The fund will invest 95-100 per cent of the corpus in securities constituting Nifty LargeMidcap 250 Index, derivatives on the securities constituting Nifty LargeMidcap 250 Index and 0-5 per cent in debt and money market instruments.

The scheme may take an exposure to equity derivatives of constituents of the underlying index when securities of the index are unavailable, insufficient or for rebalancing at the time of change in index or in case of corporate actions, for a short period of time.

The total exposure to derivatives would be restricted to 50 per cent of the net assets of the scheme.

Motilal AMC currently manages 10 schemes; it average assets under management stood at over ₹21,000 crore (July end).

By managing an average AUM of ₹13,476.09 crore, Motilal Oswal’s Multicap 35 Fund, which invests in equity-related instruments across sectors and market-capitalisation levels, is the largest fund from the AMC.

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