Stocks

Motilal Oswal’s S&P 500 fund to be launched on April 15

Our Bureau Chennai | Updated on April 08, 2020 Published on April 08, 2020

Motilal Oswal Mutual Fund is all set to launch one more international fund — Motilal Oswal S&P 500 Index Fund. The new fund offer will open on April 15 and close on April 23. Currently, Motilal Oswal has a fund based on the Nasdaq 100 index.

The minimum application amount is ₹500 and in multiples of ₹1 thereafter.

Historically, after market corrections/share fall, the market has recovered and reached new highs; as the global markets are down 20-40 per cent, “it may be a buying opportunity for the long term,” Motilal Oswal said in a document.

The S&P 500 index contains stocks of the 500 leading companies in the US, including Apple, Amazon.com, Berkshire Hathaway, Facebook, Alphabet, Johnson & Johnson, JPMorgan Chase, Microsoft and Procter & Gamble.

The index will track the S&P 500 TR index. According to the offer document, the S&P 500 has a track record of 63 years and consists purely of large-caps. As the correlation with the Indian equity market (BSE 500 and NSE 500) is very low and provide dollar hedge, the fund is likely to present an alternative to Indian investors.

Herin Visaria will be the fund manager for the equity component and Abhiroop Mukherjee for the debt part. The total expense ratio for the direct plan is 0.5 per cent and that of the regular plan is one per cent.

Global funds

Motilal Oswal Nasdaq 100 ETF has outperformed the Nifty 50 since December 2018 — the fund has produced a return of 15.7 per cent till March 31, as against the Nifty 50’s negative 15.22 per cent. At the end of December 2019, the scheme’s asset under management was ₹337.5 crore.

Besides the Motilal Oswal Nasdaq fund, there are about 10 equity schemes that cater to global markets. Among them are Kotak US Equity Fund, Franklin India Feeder - Franklin US Opportunities Fund Growth, ICICI Prudential US Bluechip Equity Fund and Nippon India Japan Equity Fund.

Published on April 08, 2020

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