Motilal Oswal Nifty Microcap 250 Index Fund introduced the launch of the Motilal Oswal Nifty Microcap 250 Index Fund, an open-ended fund replicating/monitoring the Nifty Microcap 250 Complete Return Index.

The scheme opened for public subscription on June 15, 2023, and can shut on June 29, 2023. The scheme re-opens for steady sale and repurchase inside 5 enterprise days from the date of allotment.

What sort of mutual fund scheme is that this?

That is an open-ended fund replicating/monitoring the Nifty Microcap 250 Complete Return Index.

Navin Agarwal, MD & CEO, Motilal Oswal Asset Administration Firm stated, “Now we have been pioneering in lots of passive funds in India. Our newest microcap-based index fund providing will additional increase our wide selection of passive funds. By launching the Motilal Oswal Nifty Microcap 250 Index Fund, we provide traders a pure extension of the Motilal Oswal Nifty 500 Index Fund, complementing our present vary of broad-based index funds.”

What’s the fundamental goal of investing on this fund?

The funding goal of the scheme is to supply returns that, earlier than bills, correspond to the whole returns of the securities as represented by the Nifty Microcap 250 Complete Return Index, topic to monitoring error. Nonetheless, there could be no assurance or assure that the funding goal of the scheme could be achieved.

How might one make investments on this scheme?

Buyers can make investments below the scheme with a minimal funding of ₹500 per plan/choice and in multiples of Re 1. There isn’t any higher restrict for funding.

Underneath regular circumstances, the asset allocation of the scheme can be as follows:

Are there comparable mutual funds available in the market?

So far, no asset administration firm (AMC) has launched such a fund, thus, making Motilal Oswal Mutual Fund India’s first mutual fund home to launch a fund within the Nifty Microcap 250 Index class.

Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Administration Firm stated, “With the Motilal Oswal Nifty Microcap 250 Index Fund, we lead the cost in unlocking the untapped potential and alternatives of this distinctive funding class. We imagine that the phase holds immense potential and distinctive funding alternatives which have been neglected by many within the trade.”

How will the scheme benchmark its efficiency?

The efficiency of the scheme can be benchmarked in opposition to Nifty Microcap 250 Complete Return Index. Because the Scheme is an Index Scheme and Nifty Microcap 250 Complete Return Index is the perfect benchmark for this scheme, the funding goal of the scheme is replicate/observe the efficiency of the index. The Complete Return variant of the index (TRI) can be used for efficiency comparability.

Are there any entry or exit hundreds to this scheme?

This scheme includes no “Entry Load”, which signifies that traders would not have to pay something to park their earnings on this scheme. The “Exit Load” could be charged as per the next:

• 1% if redeemed on or earlier than 15 days from the date of allotment.
• Nil- If redeemed after 15 days from the date of allotment.

Who will handle this scheme?

The fund can be managed by Swapnil Mayekar.

Does the fund comprise any inherent threat?

The scheme includes “Very Excessive Danger” as per the small print talked about within the Scheme Info Doc. It’s best suited to traders prepared to grasp that their principal can be topic to very excessive threat solely. Nonetheless, traders ought to seek the advice of their monetary advisors in the event that they doubt whether or not the product fits them.