Published: 01st Nov 2024
By: Value Research
Motilal Oswal AMC recently introduced four index funds in the sectoral and thematic category. These NFOs (new fund offers) opened for subscription on October 29, 2024, and will remain available until November 6, 2024.
These funds will be passively managed and replicate their respective indices. They will target mid- and small-cap companies in the Financial Services, Healthcare, IT, Telecom and Consumption space. Let’s break down each of them.
Benchmark: Nifty MidSmall Financial Services TRI Portfolio composition: The index holds 30 stocks versus 20 in the Nifty Financial Services Index. Nearly 50% of its weight is in the top 10 stocks, with no overlap in the top holdings between the two indices.
Benchmark: Nifty MidSmall Healthcare TRI Portfolio composition: The index’s top 10 stocks constitute around 60% of the portfolio. By contrast, the Nifty Healthcare Index is highly concentrated, with 82% of the portfolio formed by the top 10 stocks, with a one-fifth overlap between the two.
Benchmark: Nifty MidSmall IT and Telecom TRI Portfolio composition: The index holds 20 stocks, of which the top 10 constitute 76% of its weight. The Nifty IT Index, in comparison, has a total of just 10 stocks. Three companies are common between the two indices, with about a 14% overlap.
Benchmark: Nifty MidSmall India Consumption TRI Portfolio composition: Healthcare, Consumer Durables and FMCG make up 60% of the index. Nearly half of the portfolio is in its top 10 holdings, not overlapping with the Nifty Consumption Index.
The fund will be jointly managed by Rakesh Shetty and Swapnil Mayekar.
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