India’s consumption sector is growing fast, thanks to a rising middle class, more people living in cities, and an increase in consumer spending. This growth makes mid and small-sized companies in the consumption sector attractive for investors who want to benefit from the country’s rising demand.
To help investors tap into this opportunity, Motilal Oswal Mutual Fund has launched the Motilal Oswal Nifty MidSmall India Consumption Index Fund NFO.
Motilal Oswal Nifty MidSmall India Consumption Index Fund is an open-ended index fund that follows the Nifty MidSmall India Consumption Total Return Index, providing a way for investors to aim for long-term growth by investing in mid and small-sized companies within India’s growing consumption sector.
Overview of Motilal Oswal Nifty MidSmall India Consumption Index Fund
The Motilal Oswal Nifty MidSmall India Consumption Index Fund is an open-ended fund designed to track the Nifty MidSmall India Consumption Total Return Index. It offers investors diversified exposure to mid and small-cap companies within the consumption sector, encompassing industries such as food & beverages, consumer goods, retail, and more.
Investment Objective of the Fund
The primary goal of the Motilal Oswal Nifty MidSmall India Consumption Index Fund NFO is to deliver returns, before expenses, that align with the total returns of the Nifty MidSmall India Consumption TRI, subject to tracking error. While the fund seeks to provide a benchmarked return, there is no guarantee that it will meet this objective consistently due to possible tracking errors.
Key Details of Motilal Oswal Nifty MidSmall India Consumption Index Fund
Here are the key details of the fund:
| Attributes | Details |
| Fund House | Motilal Oswal Mutual Fund |
| Risk Profile | Very High |
| Fund Managers | Mr. Swapnil Mayekar, Mr. Rakesh Shetty |
| Category | Index Fund |
| NFO Opens | October 29, 2024 |
| NFO Closes | November 6, 2024 |
| Benchmark Index | Nifty MidSmall India Consumption Total Return Index |
| Exit Load | 1% if redeemed on or before 15 days; Nil after 15 days |
| Minimum Investment Amount | Rs. 500 and in multiples of Re. 1 thereafter |
Portfolio Construction
Here’s the indicative allocations for the scheme:
| Type of Instrument | Percentage of Exposure |
| Constituents of Nifty MidSmall India Consumption Index | 95% – 100% |
| Units of Liquid schemes and Money Market instruments | 0% – 5% |
Understanding Risks and Returns
The Motilal Oswal Nifty MidSmall India Consumption Index Fund is designed to closely follow the performance of the Nifty MidSmall India Consumption TRI. The fund has delivered returns of 40.38%, 19.32%, and 19.19% in the past 1 year, 3 year, and 5 years respectively.
However, due to its focus on mid and small-cap stocks within the consumption sector, it is more susceptible to market volatility and may experience fluctuations influenced by changes in consumer demand, economic conditions, and regulatory shifts.
While the fund aims to replicate its benchmark index, tracking error can affect returns. Investors should have a high-risk tolerance, as sector-specific and market-cap-focused funds can experience periods of volatility.
Motilal Oswal Mutual Fund
Founded in 2008, Motilal Oswal Mutual Fund has been recognized for its innovative and diverse range of funds that cater to Indian investors’ needs.
Motilal Oswal Asset Management Company (MOAMC) is a portfolio manager registered with SEBI, operating the Motilal Oswal Mutual Fund (MOMF). The company is supported by Motilal Oswal Financial Services Limited (MOFSL), which is listed on major Indian stock exchanges like BSE and NSE. MOAMC obtained its SEBI registration in 2009.
As of June 30, 2024, Motilal Oswal Mutual Fund manages assets exceeding ₹66,452.27 crore and offers a diverse range of over 40 mutual fund schemes. Some of its well-known products include the Motilal Oswal Flexi Cap Fund, the Motilal Oswal Nifty India Defence Index Fund, and the Motilal Oswal NASDAQ 100 ETF, distinguished by their assets under management (AUM).
Meet the Fund Managers
Motilal Oswal Nifty MidSmall India Consumption Index Fund NFO is managed by two skilled professionals:
Mr. Swapnil Mayekar
Mr. Swapnil Mayekar, 39 years old, has a Master’s degree in Commerce with a focus on Finance Management. He brings over 13 years of experience in fund management and product development. He is responsible for several schemes, including the Motilal Oswal Nifty 50 Index Fund and the Motilal Oswal Nasdaq 100 Fund of Fund, showcasing his strong background in managing index funds.
Mr. Rakesh Shetty
Mr. Rakesh Shetty is 42 years old and holds a Bachelor’s degree in Commerce. With more than 14 years of experience in equity trading, debt management, and ETFs, he plays a key role in managing important funds like the Motilal Oswal Ultra Short Term Fund and the Motilal Oswal Liquid Fund. His focus is on delivering steady returns through effective management of debt instruments.
Who Should Invest in This Fund?
The Motilal Oswal Nifty MidSmall India Consumption Index Fund NFO is ideal for:
- Long-term investors seeking capital appreciation from India’s consumption sector, particularly within mid and small-cap companies.
- High-risk-tolerant investors willing to withstand market volatility and potential tracking errors for the prospect of higher returns.
- Individuals looking to diversify their portfolios by adding sector-specific funds focused on mid and small-cap consumption companies.
Motilal Oswal Nifty MidSmall India Consumption Index Fund is suited for investors who wish to participate in the domestic consumption theme in India, which is expected to benefit from economic growth, an expanding middle class, and rising consumer demand.
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