Motilal Oswal Mutual launches 4 index funds

Motilal Oswal Mutual launches 4 index funds

Image result for Motilal Oswal Mutual launches 4 index fundsMotilal Oswal Asset Management Company has launched four passively managed index funds — Midcap 150 Index Fund, Nifty 500 Index Fund, Nifty Bank Index Fund and Nifty Small-cap 250 Index Fund.

The new fund offer of all these funds will be open till August 30 and the cost of managing fees is low as it is managed passively. All the funds will track their corresponding index on the NSE.

Aashish Somaiyaa, Managing Director, Motilal Oswal AMC, said the new launches is an attempt to bring simple open ended index product to encourage first time investors participation with as little as 500 lumpsum or systematic investment plan.

All discussions on index funds and passives start and end with long debates on creating alpha but that is a criteria for experienced investors, he added.

“We have to think differently for new entrants who believe in digital ‘do-it-yourself’ customers who demand simple products and regulatory trends demand cheaper products enabling easy fund selection for building blocks, asset allocation and financial planning, he said.

Pratik Oswal, Head of Passive Funds, Motilal Oswal AMC, said the fund house is working on to bring simplicity by launching broad-based index linked products based on SEBI’s recent categorisation in the mutual fund space.

Index funds are better suited for investors to provide building blocks for better asset allocation, he said.

[“source=thehindubusinessline”]