Motilal Oswal Asset Management Company launches Motilal Oswal Nifty Realty ETF and Motilal Oswal Nifty SmallCap 250 ETF

·        Motilal Oswal NiftyRealty ETF is India’s first ETF offering exposure to realty stocks

·        Motilal Oswal Nifty Smallcap 250 ETF offering exposure to smallcap stocks

Mumbai,21 March 2024: Motilal Oswal Asset Management Company (MOAMC) has announced the launch of the Motilal Oswal Nifty Realty ETF and Motilal Oswal Nifty Smallcap 250 ETF.

The Motilal Oswal Nifty Realty ETF aims to provide investors an opportunity to participate in the growth potential of the realty sector and its India’s first ETF offering exposure to realty stocks. The NiftyRealty Index is designed to reflect the performance of Real Estate companies operating in residential and commercial projects. The index comprises 10 companies which also form a part of the Nifty 500.

Motilal Oswal Nifty Smallcap 250ETF aims to provide investors an opportunity to participate in the growth potential of Smallcap stocks. The Nifty Smallcap 250 Index is designed to measure the performance of the top 250companies, including those already present in the Nifty 500 constituents. The index is well-diversified, with its top 10holdings accounting for only 14% against 56% in the Nifty 50 Index.

Both the ETFs are Open-endedfunds and are expected to be listed on NSEon 21^st March 2024. TheNSE exchange symbol for Motilal Oswal Nifty Realty ETF and Motilal Oswal NiftySmallcap 250 ETF is MOREALTY and MOSMALL250 respectively, investors can usethese to buy these ETFs on the exchange like any stock.

PratikOswal, Head of Passive Funds, Motilal Oswal Asset Management Company Ltd said, “With theMotilal Oswal Nifty Realty ETF and Motilal Oswal Nifty Smallcap 250 ETF, welead the charge in unlocking the untapped potential and opportunities of thesedistinctive investment category. We believe these segments hold immensepotential and unique investment opportunities in the industry.”

He further added “Realty has beenone of the most underperforming sector post-financial crisis. It is one of thelargest employment generators. After RERA being implemented for a while, thesector may offer immense potential and unique investment opportunities thathave been overlooked. Investors who are bullish on the Realty sector but findstock picking very risky, can use this ETF as an effective investmentopportunity for long-term capital growth. Over the past 12 months, the Realtysector has recovered sharply from decadal underperformance. Smallcaps have acompelling track record of delivering relatively higher returns compared to itscounterparts, albeit at a higher risk. Investors are encouraged to consulttheir financial advisors, a prudent allocation of 10-15% to this ETF may helpenhance overall portfolio returns.”

AboutMotilal Oswal Nifty Realty ETF

The investment objective ofMotilal Oswal Nifty Realty ETF is to provide returns that, before expenses,correspond to the total returns of the securities as represented by the NiftyRealty Index, subject to tracking error. However, there is no guarantee orassurance that the investment objective of the scheme will be achieved.

Investors can purchase/sellMotilal Oswal Nifty Realty ETF units on exchange; for more information, pleaselog-in to www.motilaloswalmf.com.

WhyRealty?

Although the Nifty Realty Indexnoted 132%* over last one year, it is still recovering from the fall duringfinancial crisis. Historically, realty sector has exhibited less correlationswith broad market resulting in potential diversification benefit toinvestors. 

According to IBEF, the realty sectoris expected to grow by 17% for next couple of decades primarily on account of agrowing economy, urbanization, affordable housing, increasing FDI, andgovernment policies.  Also, the realtysector is the second highest employment generator after agriculture and by 2025it is expected to contribute to around 13% of the country''s GDP, thereby animportant sector when it comes to government policy formulation.

According to market experts,companies in this sector have improved their balance sheets and also theirprofitability through the continued premiumization and formalization of thesector. This makes investing in Realty ETF an attractive investmentproposition.

*[MSK2] Niftyindices.com; data asof 29 Feb 2024.

AboutMotilal Oswal Nifty Smallcap 250 ETF

The investment objective ofMotilal Oswal Nifty Smallcap 250 ETF, is to provide returns that, beforeexpenses, correspond to the total returns of the securities as represented bythe Nifty Smallcap 250 Index, subject to tracking error. However, there is no guaranteeor assurance that the investment objective of the scheme will be achieved.

Investors can purchase/sellMotilal Oswal Nifty Smallcap 250 ETF units on exchange; for more information,please log-in to www.motilaloswalmf.com.

WhySmallcap?

Small-cap companies are typicallyin the early stages of growth, allowing for more room for expansion and apotential for greater returns. These companies are known for their emergingbusiness, niche market focus, and strong promotor-driven dynamics.

Moreover, historically smallcaptend to outperform their larger counterparts, during the bull run.

About Motilal Oswal Asset Management Company:

Motilal Oswal Group possesses legacy inequities for over 3 decades. Motilal Oswal Asset Management Company Ltd.(MOAMC) is registered with SEBI as the Investment Manager for Motilal   Fund. It was incorporated on November 14, 2008. It provides Investment Management and Advisory Services to investors based within and outside India and having AIF’s, Portfolio Management Services business and Mutual Funds.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully. 

For further details contact:
Rohini Kute
Head, Corporate Communication,
Motilal Oswal Financial Services
Mail: rohini.kute@motilaloswal.com