Motilal Oswal Mutual Fund Launches ‘Nifty Capital Market Index Fund’

Motilal Oswal Mutual Fund (MOMF) has announced the launch of its latest offering, the Motilal Oswal Nifty Capital Market Index Fund. This New Fund Offer (NFO), open from November 26 to December 10, 2024, provides investors exposure to the growth potential of companies within India’s capital markets ecosystem.

The fund’s underlying benchmark, the Nifty Capital Market Total Return Index, comprises 15 companies that are also part of the Nifty 500. These include stockbrokers, depositories, wealth management firms, exchanges, and mutual fund companies—businesses that are essential to the capital market’s infrastructure.

Key Details of the Fund:

• NFO Period: November 26 to December 10, 2024

• Investment Objective: To generate returns that mirror the Nifty Capital Market Total Return Index before expenses, subject to tracking error. However, there is no assurance of achieving the investment objective.

• Benchmark: Nifty Capital Market Total Return Index

• Portfolio Strategy: Designed for high-growth investors with a very high-risk appetite.

• Investor Profile: Suitable for investors seeking long-term capital appreciation in line with the index’s performance.

Market Performance and Growth Potential

The Nifty Capital Market Total Return Index has delivered strong historical performance, with a one-year return of 96.9% and a three-year return of 31.9% as of October 31, 2024. However, the fund acknowledges potential for higher volatility within this theme.

India’s financial markets have witnessed exponential growth, with exchange turnover increasing by 52% annually between 2010 and 2024. Projections suggest turnover could reach ₹95,000 lakh crore by FY2025. Additionally, demat accounts have grown at a CAGR of 29%, reaching 17.5 crore accounts by September 2024, while monthly SIP inflows have surged from ₹3,698 crore in 2016 to ₹24,509 crore in 2024.

Speaking on the occasion, Pratik Oswal, Chief of Business Passive Funds at Motilal Oswal Asset Management Company, highlighted the vast untapped potential in India’s capital markets. “With only 8 crore Indians currently investing in the stock market, there is immense room for growth. Technological advancements such as real-time fund transfers via UPI and T+1 settlement timelines have further eased investor participation,” he said.

Oswal also noted India’s leadership in IPO issuances globally, with 209 IPOs raising ₹64,000 crore in 2024—a CAGR of 46% since FY19.

Fund Management

The fund will be managed by Swapnil Mayekar (Equity Component) and Rakesh Shetty (Debt Component), offering a diversified approach to portfolio management.

Note: Investors should refer to the scheme information document for risk factors and additional details. Visit Motilal Oswal Mutual Fund for more information.