Motilal Oswal Mutual Fund has collected Rs 235 crore from its first fund -- MOSt Shares M50, an open-ended exchange-traded fund (ETF). It is the largest amount raised by any equity ETF in the past five years.
Among all equity ETFs, it is the second largest collection ever. UTI Sunder, which raised Rs 388 crore during its subscription period in in July 2003, is the largest equity ETF in terms of NFO collection.
MOSt Shares M50 is India's first fundamentally weighted ETF based on the Nifty.
The performance of the scheme will be benchmarked against MOSt 50 Index and S&P CNX Nifty Index. MOSt 50 Index is a fundamentally-enhanced index based on S&P CNX Nifty Index (Nifty). The index includes all 50 constituents of the Nifty.
The scheme will allocate 90 to 100 per cent of assets in securities constituting the MOSt 50 Index (which would have medium to high risk profile). The balance up to 10 per cent will be allocated to debt and money market instruments (which would have low to medium risk profile).
Nitin Rakesh, chief executive officer, Motilal Oswal Mutual Fund, told Value Research that the success of the new fund was primarily because of the uniqueness of the fund. “The large distribution network of our parent company, Motilal Oswal, and its already existing customer base also helped us in mopping up a good amount,” he added.
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