Motilal Oswal Mutual Fund launches MOSt Shares M50 - India's 1st Fundamentally weighted ETF based on Nifty
Motilal Oswal Asset Management Company Ltd. has announced the launch of Motilal Oswal MOSt Shares M50 ETF, an open ended Exchange Traded Fund focusing on investing in a fundamentally weighted basket of stocks that comprise the S&P CNX Nifty Index (Nifty). This will be India's 1st Fundamentally weighted ETF based on Nifty and will extend the ETF product set towards a new paradigm.
Tweet-- On the event of the launch of MOSt Shares M50- India's 1st Fundamentally weighted ETF based on Nifty, Mr. Nitin Rakesh, MD & CEO, Motilal Oswal Asset Management Company Ltd said, "Motilal Oswal AMC is presenting a unique investment product to the investors that combines the benefits of active allocation and passive execution by using a fundamental weighing approach to the most popular market benchmark - Nifty. As an ETF platform, MOSt Shares M50 also provides the benefits of a mutual fund and a share."
Speaking on the occasion, Mr. Raamdeo Agrawal, Director, Motilal Oswal Asset Management Company Ltd., said, "In 5-6 years' time, India's GDP may touch US$2.5 trillion. At the then projected savings rates of 40% of GDP, India's savings would be almost 1 trillion dollars. This provides a great opportunity for investment businesses and Motilal Oswal's MOSt Shares M50 ETF is the first initiative, of Motilal Oswal AMC, to address this opportunity"
MOSt Shares M50 will be listed on the NSE. The minimum investment amount during the NFO is Rs. 10,000 and in multiples of Re. 1 thereafter. The fund manager of the scheme is Mr. Rajnish Rastogi.
The New Fund Offer (NFO) will be open for subscription from June 30, 2010 till July 19, 2010.
About MOSt Shares M50
MOSt Shares M50 is an open ended Exchange Traded Fund (ETF), which seeks investment return that corresponds (before fees and expenses) generally to the performance of the MOSt 50 Basket (Underlying Basket), subject to tracking error. MOSt 50 Basket is a fundamentally weighted basket based on S&P CNX Nifty Index. The constituents of MOSt 50 Basket will be the same as the constituents of Nifty. The MOSt 50 Basket passively allocates weights to its constituents at the time of rebalancing based on the pre-defined methodology of the basket. Weights assigned to constituents are dependent on their fundamental performance and their prices with higher weights being assigned to constituents which have demonstrated superior financial performance and have reasonable valuation.
MOSt 50 Basket has been designed by Motilal Oswal Asset Management Company Ltd. (MOAMC) which owns the intellectual property of the methodology of the Basket. MOSt Shares M50 would invest in securities constituting the MOSt 50 Basket in same proportion as in the Basket.
Notes to Editor
About Motilal Oswal Asset Management Company
Motilal Oswal Asset Management Company is registered with SEBI as the Investment Manager to Motilal Oswal Mutual Fund It was incorporated on November 14, 2008. MOAMC is a 100% subsidiary of Motilal Oswal Securities Limited.
About Motilal Oswal Financial Services Ltd
Motilal Oswal Financial Services Ltd. (NSE :MOTILALOFS, BSE :532892, BLOOMBERG : MOFS IN) is a well-diversified, financial services company focused on wealth creation for all its customers, such as institutional, corporate, HNI and retail. Its services and product offerings include wealth management, retail broking and distribution, institutional broking, asset management, investment banking, private equity, commodity broking and principal strategies. The company distributes these products through 1,397 business locations spread across 584 cities and the online channel to over 621,215 registered customers. MOFSL has strong research capabilities, which enables them to identify market trends and stocks with high growth potential, facilitating clients to take well- informed and timely decisions. MOFSL has been ranked by various polls such as the Best Local Brokerage 2005, Most Independent Research - Local Brokerage 2006 and Best Overall Country Research - Local Brokerage 2007 in the Asia Money Brokerage Polls for India. In the Starmine India Broker Rankings 2009 from Thomson Reuters, we won awards in 3 out of 4 categories and also bagged the No. 1 Broker Award in the ET Now - StarMine Analyst Awards 2009.