Motilal Nifty 5 Year Benchmark G-Sec ETF

About Motilal Oswal 5-Year Benchmark G Sec ETF

• Motilal Oswal Nifty 5-year benchmark G-sector ETF is an open-ended gilt scheme with a fixed duration of 5 years.

• The scheme belongs to Motilal Mutual Fund House.

• It was launched on December 10, 2020.

• As of June 30, 2024, the scheme’s total assets under management (AUM) stood at ₹87.44 crore.

• Rakesh Shetty is the fund manager for Motilal Oswal Nifty 5-year Benchmark G-sector ETF.

• The ETF units are listed on both exchanges NSE and BSE, one can invest by buying units through a broker.

• The ETF units can be bought by retail investors directly from the demat account of their choice.

Investment Objective & Benchmark

• The main objective of the Motilal Oswal 5-Year G-Sec ETF is to replicate the returns of the underlying index.
• It is benchmarked against of NIFTY 5-year Benchmark G-Sec Index. This index tracks the performance of government securities bonds with a maturity of around 5 years.
• The risk level of the Motilal Oswal Nifty 5-year benchmark G-sector ETF is moderate because it invests in government securities.
• The risk of default is extremely low, making it a safer option compared to equities or corporate bonds.
• This Motilal Oswal 5-Year G-Sec ETF is suitable for investors who want a stable and relatively low-risk investment over a medium-term horizon of around 5 years.
• Government securities typically carry lower credit risk compared to corporate bonds, but they are subject to interest rate risk and macroeconomic factors.
• It offers exposure to a basket of government securities, reducing the risk compared to holding a single security.

Asset Allocation & Portfolio Composition

• The fund allocation of this ETF comprises around 98.42% in government securities and 1.58% in cash & cash equivalent.
• The ETF has given a return of 7% in a single year to its investors compared to its benchmarked index which has given a return of 7.4%, as of June 30, 2024.
• Since its inception, the ETF has given an annualised return of 4.6%,as of June 30, 2024.