Motilal Oswal Mutual Fund launches Nifty 500 ETF: Key things to know

livemint.com:

Motilal Oswal Nifty 500 ETF seeks to replicate/track the total returns of the Nifty 500 Index, which is designed to measure the performance of the top 500 companies based on market capitalization. Compared to the Nifty 50 Index, the Nifty 500 Index is well-diversified, with its top 10 holdings accounting for only 37%, as opposed to 58% in the Nifty 50 Index.

Furthermore, it provides diversified exposure to 21 sectors, some of the sectors includes textiles, consumer services, media, and forest materials that are not present in the Nifty 50 Index. The index offers an excellent blend of Largecap (75%), Midcap (16%) and Smallcap (9%).

Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company Ltd said, " This new offering expands our extensive range of passive funds and provides investors with a valuable addition to our suite of broad-based index funds & ETFs." Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company Ltd said, "Investors seeking diversification across market caps, sectors, and stocks to mitigate risk will find this ETF to be an ideal choice. With over 90% market capitalization coverage, it offers a blend of stability, diversification, and growth potential, making it an appealing option for those looking to capitalize on India's promising future." The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by the Nifty 500 Total Return Index, subject to tracking error.

However, there is no guarantee or assurance that the investment objective of the scheme will be achieved. The Minimum Application amount for Motilal Oswal Nifty 500 ETF is ₹500 and in multiples of Re 1 thereafter.