Recently, Motilal Oswal AMC (Asset Management Company) announced its release of two large-cap index funds, i.e., Motilal Oswal Nifty 50 Index Fund and Motilal Oswal Nifty Next 50 Index Fund.
The NFO for these two funds will be available from December 3, 2019, to December 17, 2019. These two pure Index funds depend on the most popular indices in India, i.e., Nifty 50 and Nifty Next 50.
The MD and CEO of MOMAC, Aashish Somaiyaa, said that they aim to launch two index funds to retail the investment by index funds formats. These mutual funds are open-ended as well as investor-friendly to a small size of Rs 500.
Aashish said that they got an exciting response to the launch of their index funds. They have boosted their prominence among the digital-based savvy DIY investors, distributors, and advisors who acquire minimal cost for the allocation of assets and financial planning seriously.
Two years ago, Sebi took a step for re-categorization, and from then, there are many concerns on the performance of these large-cap mutual funds. After that step, it is necessary to invest in the top 100 stocks through market capitalization by these schemes.
According to the Mutual fund advisors and analysts, if the investment is restricted, then people will cap all the capabilities of the large cap mutual funds. In the past one and a half years, many actively-managed large cap schemes were failed due to a wide margin in passively-managed large cap index funds.
Overall, these factors are responsible for the active vs. passive investment strategy in the big cap space. Motilal Oswal released its two cap mutual funds schemes at a very crucial time. Recently, the fund house also announced its launch of a host of index funds.
The MOMAC’s Head of Passive Funds, Prateek Oswal, said that Motilal Oswal would provide asset allocation building blocks at a low cost across all the divisions. Any investor who is looking for exposure in the index funds can easily do so by their products.