Motilal Oswal Asset Management Company (AMC) has achieved a milestone with its newly launched Motilal Oswal Nifty India Defence Index Fund, which garnered a whopping Rs 1,676 crore during its New Fund Offer (NFO) period from 13 June to 27.
The fund is India's first defense index fund and aims to provide investors with exposure to defense stocks listed in the country, capitalising on the burgeoning growth in the sector.
Units of the fund were allocated on 3 July and it is set to reopen for further subscription and redemption starting 9 July. According to the AMC, this NFO has set a new benchmark as the highest-ever collection by an equity index fund in India, signaling strong investor confidence in the defense sector's potential.
Prateek Agrawal, Managing Director & CEO of Motilal Oswal AMC, was jubilant about the fund's prospects, and spoke on India's robust advancements in defense technology and infrastructure. The fund has garnered interest from over 2.48 lakh unique investors across 16,900 pin codes in India, pointing to its broad appeal and well-diversified investor base.
The open-ended fund is designed to replicate the total returns of the Nifty India Defence Index TRI. It features a minimum application and redemption amount of Rs 500, with subsequent amounts in multiples of Rs 1. Investors will face an exit load of 1 per cent if redeemed within 15 days from the date of allotment, thereafter, the exit load is nil.
