Motilal Oswal AMC launches Gold and Silver ETFs FoFs
An open ended fund of funds scheme investing in units of gold and silver exchange-traded funds
Mumbai, 22 September 2022: Motilal Oswal Asset Management Company (MOAMC) has announced the launch of Motilal Oswal Gold and Silver ETFs FoFs, with an objective to generate returns by investing in units of Gold ETF and Silver ETF.
The scheme shall generate returns by investing in units of Gold and Silver ETFs; the daily weights shall be market driven with the starting (NFO) allocation of 70:30. The maximum weight is capped at 90%, subject to quarterly review. The initial higher allocation to Gold is on account of it having higher economic value and being highly liquid. Additionally it is relatively more stable as compared to silver.
Why should you consider adding Gold & Silver in your portfolio?
The two precious metals Gold & Silver have virtually outlasted every civilization known to modern man; No wonder mankind has been fascinated by these metals for ages. These metals have been in existence for more than 6000 yrs and also have been a testament to collapse of various economic system.
Gold is extensive used in jewelry and is often considered as ‘safe haven’, as it tends to do well during market uncertainty. In contrast silver has wide industrial applications and generally does well during business recovery periods. Exposure to both metals help portfolio do well in both turbulent times and during recovery periods.
The NFO will open on 26th September 2022 and closes on 7th October 2022.
Indicative Base Total Expense Ratio of the funds: Regular – 0.50%, Direct – 0.15%. The date of allocation will be 13
th October 2022.
Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company Ltd said, “Gold and silver have been preferred assets for Indian house holds for ages. These precious metals had been acquired and kept in the physical forms. However, we are witnessing high inflation around the world. Central banks across have resorted to rate hikes and neutral system liquidity to tackle the runaway inflation. Gold is a hedge against inflation, protects against the erosion of wealth, and acts as a store of value in such times. Even, the world’s elite turn to precious metals to protect their fortunes, as both metals never lose its value. Apart from investment, jewelry & silverware, Silver has major industrial applications including green technologies.”
Mr Agarwal added, “We are at an interesting juncture as the advanced economies of the US and Europe are at risk of slipping into a recession whereas India is showing very growth prospects.”
Pratik Oswal, President - Passive Business, Motilal Oswal Asset Management Company Ltd said,
“With an objective to bring new investment opportunities, Motilal Oswal AMC has launched the Gold and Silver ETFs FOFs. This offers a huge diversification mix as both Gold and Silver have a low correlation to equities and thus act as a good diversifier. Both metals offer good downside protection and tend to outperform in bear markets. While Silver tends to outperform when the market is recovering from a bear phase. With this scheme, the investors will be able to mitigate risks against the market volatility while enjoying the portable wealth and rising economic values.”
The Minimum Application amount for Motilal Oswal Gold & Silver ETFs FOFs is Rs. 500/- and in multiples of Re. 1/- thereafter. On ongoing basis investor can purchase/redeem units of the Scheme through financial advisor or by log-in to
www.motilaloswalmf.com. Further, the minimum application amount for ETF FOFs is Rs 500/- & in multiples of Re.1/- thereafter.
Please note: The other Funds managed by the Fund Managers can be viewed on www.motilaloswalmf.com
Disclaimer This release has been issued on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this document is for general purposes only and not a complete disclosure of every material fact. The Stocks (if any) mentioned herein is for explaining the concept and shall not be construed as an investment advice to any party. The information / data herein alone is not sufficient and shouldn’t be used for the development or implementation of an investment strategy. It should not be construed as investment advice to any party. All opinions, figures, estimates and data included in this article are as on date. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. The statements contained herein may include statements of future expectations and other forward-looking statements that are based on our current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Readers shall be fully responsible/liable for any decision taken on the basis of this article. Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
About Motilal Oswal Asset Management Company:
Motilal Oswal Group possesses legacy in equities for over 3 decades. Motilal Oswal Asset Management Company Ltd. (MOAMC) is registered with SEBI as the Investment Manager for Motilal Oswal Mutual 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, ETFs and Mutual Funds.
MOAMC is one of the pioneers of PMS business with over 17+ years of track-record. It is also one of the pioneers of passive funds in India through ETFs way back in 2010.
MOAMC follows a unique investment philosophy, ‘Buy Right; Sit Tight’ which means buying quality companies at a reasonable price and Sit Tight to ride their growth cycle for a long period of time.
For further details contact:
Rohini Kute
Head, Corporate Communication,
Motilal Oswal Financial Services
Mobile: 9820196838
Mail:
rohini.kute@motilaloswal.com