Motilal Oswal Mutual Fund has launched a new fund offer (NFO) for its Motilal Oswal BSE 1000 Index Fund. The NFO will open on June 5 and close on June 19.
The investment objective of the scheme is to provide returns that, before expenses, correspond to the total returns of the securities as represented by BSE 1000, subject to tracking error.
Motilal Oswal BSE 1000 Index Fund provides broad-based exposure to India’s equity markets by tracking the BSE 1000 Total Return Index, which covers approximately 94 per cent of the country’s listed market capitalisation.
The index includes companies across large, mid, small, and micro-cap segments, representing diverse sectors and industries – from traditional industries to cutting-edge technology.
It offers exposure to a mix of established market leaders and emerging companies across 22 sectors, with the top-10 stock weight capped at 33 per cent, thereby helping to reduce concentration risk, the fund house said in a statement.
“The index also includes micro-cap companies, whose market capitalisation and liquidity have grown approximately 5× and 14× respectively over the past five years. All within a passive, free-float weighted structure with semi-annual rebalancing,” it further added.