MOTILALAMC - MONIFTY500 ETF

About Motilal Oswal Nifty 500 ETF

• Motilal Oswal Nifty 500 ETF is an open-ended exchange-traded fund offered by the Motilal Oswal Mutual Fund House.
• The ETF was launched on September 29, 2023.
• The symbol for the Motilal Oswal Nifty 500 ETF on both the National Stock Exchange (NSE) and BSE is MONIFTY500.
• The fund’s Assets Under Management (AUM), as of July 31, 2024, stood at ₹67 crore.
• The fund has been managed by Swapnil Mayekar and Rakesh Shetty since its inception on September 29, 2023.
• Listed on the BSE and NSE, the ETF units can be traded during usual market hours just like equity stocks.
• One can invest in the scheme by placing buy orders for the ETF units through a demat account with a registered broker.

Investment Objective and Benchmark

• The benchmark for the Motilal Oswal Nifty 500 ETF is the Nifty 500 Total Return Index, which represents the top 500 companies based on full market capitalisation and average daily turnover.
• The Motilal Oswal Nifty 500 ETF’s investment objective is to produce returns that match the total returns of the securities represented by the Nifty 500 Total Return Index.
• The ETF invests in top 500 companies listed on the NSE thus offering diversification of funds across market capitalisations and sectors.
• With investments in companies from different sectors, the ETF limits investors’ exposure to sectoral risk or those associated with an investment in a single stock.
• The fund falls into the very high risk category.
• It is suitable for investors looking at a long-term goal of wealth creation.

Asset Allocation and Portfolio Composition

• The Motilal Oswal Nifty 500 ETF allocates 95% to 100% of its holdings to constituents of the Nifty 500 Index.
• The fund invests 0% to 5% in units of liquid schemes and money market instruments.

The top four sectors in the Motilal Oswal Nifty 500 ETF as of July 31, 2024, are:

• Financial Services: 27.5%
• Information Technology: 9.6%
• Oil, Gas & Consumable Fuels: 8.8%
• Automobile and Auto Components: 7.6%.

Here’s a list of the top 10 holdings of the Motilal Oswal Nifty 500 ETF:

• HDFC Bank: 6.4%
• Reliance Industries: 5.3%
• ICICI Bank: 4.5%
• Infosys: 3.5%
• ITC: 2.4%
• Larsen & Toubro: 2.3%
• Tata Consultancy Services: 2.3%
• Bharti Airtel: 2.1%
• State Bank of India: 1.8%
• Axis Bank: 1.7%

Since its inception on September 29, 2023, the scheme has delivered a return of 43.77% against the benchmark returns of 44.28% as of July 31, 2024.