Motilal Oswal Asset Management Company has announced the launch of Motilal Oswal 5 Year G-sec ETF. After launching an array of passive funds, this ETF by Motilal Oswal AMC is the first ETF in the 5-year g sec category. The NFO will be open on November 23, 2020 and shall close on December 2, 2020.
Motilal Oswal MF earlier launched schemes like Nifty 50 ETF, Nifty Midcap 100 ETF, NASDAQ 100 ETF.
According to a press release sent by the fund house, the Motilal Oswal 5 year G-Sec ETF seeks investment return that closely corresponds (before fees and expenses) to total returns of the securities as represented by the ‘Nifty 5 Yr. Benchmark G-Sec Index’, subject to tracking error.
The ETF offers investors an attractive low cost alternative to fixed deposit since it has practically no default risk, no lock-in, and historically attractive pre- and post-tax returns, the fund house claims.
“The Motilal Oswal 5 year G-Sec ETF will invest in underlying constituent of Nifty 5 Yr Benchmark G-sec Index. With the approx. duration of 4 years, the index falls in a sweet spot between short duration and long duration G-Sec Indices.” said Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company Ltd. “With safety being a primary need of debt investors today, the ETF fits well for investors who are looking for safety along with better tax advantages compared to traditional fixed income products.”
The minimum application amount during NFO is Rs 500 on ongoing basis investor can purchase/redeem units of ETF on stocks exchanges.
“The launch of Motilal Oswal 5 Yr G-Sec ETF adds to our repertoire of investor centric products and deepens our product offering for investor community. This ETF is key part of our endeavor to offer building blocks for asset allocation to investors.” said Navin Agarwal, MD & CEO Motilal Oswal Asset Management Company.