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Motilal Oswal Asset Management Company announces the launch of Motilal Oswal Nifty G-Sec May 2029 Index fund

Mumbai 09-Mar-2023

Motilal Oswal Asset Management Company announces the launch of Motilal Oswal Nifty G-Sec May 2029 Index fund

Mumbai, 9th March 2023: Motilal Oswal Asset Management Company (MOAMC) launched its first target maturity fund, the Motilal Oswal Nifty G-sec May 2029 Index fund. This is an open-ended target maturity scheme replicating/tracking the Nifty G-sec May 2029 Index. The fund re-opens for investors on 10th March 2023.

Since the launch of first target maturity fund in 2019, it has found many takers with AUM close to Rs 1.5 lakh crore as on January’2023 at Industry level. For the uninitiated, Target maturity funds have a set maturity date similar like fixed deposit. These funds usually follow a buy and hold strategy and cease to exist at a set maturity date. Such funds offer investors easy entry/exit, stability, higher visibility of returns along with lower tax implication as compared to conventional investment vehicles like fixed deposit.

According to the fund house, the scheme Motilal Oswal Nifty G-sec May2029 Index fund will aim to invest in government securities similar to that of the underlying index. The index will hold in equal proportion 3 government securities maturing in the year 2029.

Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company Ltd said, “Target maturity fund (TMF) segment has seen phenomenal growth in past couple of years. From being non-existent couple of years back to having more than 70 funds managing ~Rs 1.5Lac Cr, this segment has come a long way. Several factors have contributed to the success of these funds, particularly the return visibility. We are excited to enter into this space with the launch of this fund”

Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company Ltd said that, “Following the rapid hike in policy rates over last year, the inflation has broadly moved in RBI’s comfort zone thus reducing pressure for further hike in interest rates. This presents an attractive opportunity for investors to invest at these levels, as the yields seem to have peaked out. Investors wanting to lock-in at these levels can turn to target maturity funds, as these funds provide high visibility of returns if held till maturity”.

He further added “We find the G-secs particularly in the 4–6 year segment to be attractive, considering the tighter spread of SDL & PSUs over G-sec and the shape of the yield curve”

Investor wanting to invest in this fund can do so by logging in to www.motilaloswalmf.com, or they can read out to their financial advisor. On an ongoing basis the minimum application amount for the fund is Rs500/- & 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 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, Motilal Oswal Nifty 50 ETF, Motilal Oswal Midcap 100ETF, Motilal Oswal Nasdaq 100 ETF – the only offshore ETF and have exclusive rights for Nasdaq.

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