Motilal Oswal MF’s Defence Index Fund attracted ₹1,676 crore in its new fund offer (NFO), the highest ever for an equity index fund.
Fund Type- Open-ended Passive scheme
Bench mark-Nifty India Defence Index
Participation By- 2,48,000 investors From 16,900 pin-codes across India.
Motilal Oswal Nifty India Defence Index Fund, the first domestic passive fund for the sector, collected ₹1,676 crore during its New Fund Offer (NFO) period, the highest ever for an equity index fund. The fund saw participation from 2,48,000 unique investors across 16,900 pin codes in India.
The NFO was open from June 13-27, and units were allocated on July 3. The scheme will reopen for further subscription and redemption from July 9.
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.
As of the end of May, the Nifty India Defence Index has shown a compounded annual growth rate (CAGR) of 177% over one year and 89.5% over three years.
High risk fund
Brokerage IIFL considers the Motilal Oswal Nifty India Defence Index Fund a high-risk investment. The fund’s performance is closely tied to the defence sector, with many stocks having high P/E ratios. Risks include potential changes in government priorities, liquidity issues due to low institutional trading, and entering the market at its peak. The fund is benchmarked to the Nifty India Defence TRI, meaning it shares the same thematic risks as the index.
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