New Fund Offer: Motilal Oswal AMC launches Motilal Oswal Nifty India Defence Index Fund – Check details

financialexpress.com:

Motilal Oswal Asset Management Company (MOAMC) has announced the launch of Motilal Oswal Nifty India Defence Index Fund, India’s first Index Fund offering exposure to defence stocks listed in India. The fund aims to provide investors an opportunity to participate in the growth potential of the defence sector.

Motilal Oswal Nifty India Defence Index Fund is an open-ended fund replicating/tracking the total returns of the Nifty India Defence Index. The NFO opens on 13^thJune 2024 and closes on 24^thJune 2024.

The Nifty India Defence Index is designed to reflect the performance of defence companies operating in manufacturing and servicing defence projects. The index comprises 15 companies which also form a part of the Nifty total market.

Over the last 1 year and 3 years, CAGR of Nifty India Defence Index has been 177% and 89.5% respectively as of end of May 31, 2024. While defence exhibits strong performance potential, it may also experience higher volatility.

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According to Nomura research, the defence sector highlights a significant opportunity for India’s defence sector, estimating a pipeline of USD138 bn over FY24-FY32F. As India continues to prioritize national security and technological advancement, investors are presented with a unique opportunity to participate in this strategic growth. The recent stellar performance this sector can be attributed to various changes in government policies and prioritizing the defence sector.

The Government of India has put import embargo on 4600+ defence items by Dec 2027 to reduce imports and increase defence manufacturing in India, moving towards ‘Atmanirbhar Bharat’ (self-reliance). The government is