January 30, 2023

Motilal Oswal S&P 500 Index Fund, Motilal Oswal MSCI EAFE High 100 Choose Index Fund and Motilal Oswal Nasdaq 100 Fund of Fund will reopen for contemporary subscription.

November 22, 2022 / 06:57 PM IST

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Motilal Oswal Mutual Fund has introduced re-opening of its index funds investing in abroad shares for traders. The fund home shall be accepting as much as Rs 2 lakh per calendar month, per everlasting account quantity (PAN) from December 1, 2022 in three schemes. This restrict of Rs 2 lakh can also be per scheme.

The fund home has communicated that will probably be accepting investments as lumpsum or switch-in into Motilal Oswal S&P 500 Index Fund, Motilal Oswal MSCI EAFE High 100 Choose Index Fund and Motilal Oswal Nasdaq 100 Fund of Fund. The fund home won’t be accepting cash in these schemes by way of systematic funding plans and systematic switch plans.

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Although the fund home gained’t settle for any SIP within the aforesaid schemes, the traders are allowed to put money into tranches in them. Every of those investments shall be handled as a separate subscription and items shall be allotted, so far as the investor doesn’t cross Rs 2 lakh-mark in a given calendar month.

Affiliation of Mutual Funds in India (AMFI) had notified in June 2022, that mutual fund schemes might resume subscriptions and make investments in abroad funds or securities as much as the headroom out there with out breaching the abroad funding limits as on February 01, 2022.

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The fund home additional clarified that there are not any restriction on investments in different schemes. The items of change traded funds investing in abroad shares proceed to commerce on the inventory exchanges. There are not any restrictions on redemptions of items of any scheme, or registrations of systematic withdrawal plans.

The biggest worldwide shares targeted schemes – Motilal Oswal Nasdaq 100 ETF manages property value Rs 5,033 crore as on October 31, 2022. The scheme has misplaced 21.01 % in final one yr ended November 21, 2022. Worldwide funds as a class has misplaced on a median 16.07 % over the identical interval, as per Worth Analysis.

Savvy traders use fairness funds investing in worldwide shares to realize diversification of their portfolios. Since these schemes put money into shares of firms listed abroad, traders are uncovered to timing danger, which might be decreased by staggering investments in these funds.