NFO alert: Motilal Oswal BSE 1000 Index Fund launched — here's all you need to know
Notably, this is the first fund to replicate the BSE 1000 Total Return Index, which covers approximately 94 per cent of the country's listed market capitalisation. It offers investors a wide equity market representation within a single index, the company said in a press release.
According to the company, the new fund offer ( NFO) will open for subscription from June 5 to June 19, 2025. Investors can put in a minimum lump sum amount of ₹ 500, with subsequent multiples of ₹ 1.
The company also mentioned that an exit load of 1 per cent will be applicable if the investment is redeemed within 15 days of allotment. No exit load will be charged after this period.
The NFO is suitable for investors who are seeking long-term capital growth and return that corresponds to the BSE 1000 Total Return Index, although its performance may vary due to tracking error, the company said.
The Motilal Oswal BSE 1000 Index Fund includes companies across large, mid, small, and micro-cap segments, representing diverse sectors and industries - from traditional industries to cutting-edge technology.
This index provides a blend of established companies and emerging companies across 22 sectors, reducing dependence on a few large stocks. To minimise risk, the top 10 stocks are capped at around 33 per cent of the total weightage.
'It offers exposure to a mix of established market leaders and emerging companies across 22 sectors, with the top-10 stock weight capped at ~33%, thereby helping to reduce concentration risk. The index also includes micro-cap companies, whose market capitalisation and liquidity have grown approximately 5× and 14× respectively over the past five years. All within a passive, free-float weighted structure with semi-annual rebalancing,' the company said in the statement.
Delving into the asset allocation of the fund and associated risks, Pratik Oswal, Head of Passive Funds at Motilal Oswal, said BSE 1000 TRI is primarily a large and mid-cap index, which makes it 'relatively less risky'.
'Approximately 75 to 80 per cent of the index will be large and mid-cap. 60 per cent is large cap. So relatively, it's not a very risky fund. But, however, it's a 100 per cent equity fund,' Oswal said, adding that this fund will benefit investors who are looking at a long-term approach to investing.
'An investor should not look at it from a one or two-year perspective. It should be a minimum five-year perspective. That's important when you look at these sorts of funds.'
He also mentioned that investors who are concerned about the returns getting diluted due to the over-diversification in the fund should note that this fund follows the 'Darwinism' approach in the stock market. 'If a stock is performing well in the current market, its weightage in the fund increases and if the opposite happens, the weightage of the fund will automatically go down.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
a day ago
- Mint
Hyundai Motor India share price gains for fourth straight day, touches fresh all-time high
Continuing their winning streak for the fourth straight session, shares of Hyundai Motor India, one of the country's leading PV makers, gained another 1% to touch a fresh all-time high of ₹ 2,270 apiece in Thursday's intraday trade on August 14. The stock has been maintaining its upward run since the company's release of June quarter numbers, which came in above Street estimates in late July, and has since gained 7%, which also pushed the company's market capitalization close to ₹ 2 lakh crore, just 11% away from reaching that mark. Brokerages have also maintained their positive outlook on the company following its beat in operating margin, which came in more than 100 basis points above their forecasts at 13.3%, driven by a rich product mix (higher CNG contribution) and cost control measures. The company has been targeting higher exports amid weak domestic demand, which supported its growth during the quarter, as it posted a net profit of ₹ 1,336 crore, higher than analysts' estimates of ₹ 1,259 crore. Exports grew 13% in the June quarter, while domestic sales dropped 6%, and the company targets overseas shipments to grow 7%–8% this fiscal year. The PV maker has also downplayed concerns over China's rare-earth magnet export ban, saying its current stockpile is sufficient to handle any near-term disruptions, which also boosted investor confidence that there would be no immediate supply issues. Though domestic demand was weak, analysts expect a gradual recovery led by a healthy monsoon, the upcoming festive season, the recent rate cut, and the 8th Pay Commission. In its recent note, global brokerage firm Goldman Sachs initiated coverage with a 'buy' recommendation and set a target price of ₹ 2,600, expecting growth to be driven by successful EV models, market share gains in emerging markets, and upcoming product launches, which could lift market share by 120 basis points between FY25 and FY28. The brokerage expects over 8% volume CAGR over the next three years, while Motilal Oswal has also factored in 8% volume CAGR over FY25–27E, citing the company's plan to launch 26 products (including variants) by FY30, of which eight would be launched over FY26–27E. It also retained its 'buy' rating on the stock with a target price of ₹ 2,408. The stock, which made its debut on the Indian stock market in October 2024, stayed largely inactive for nearly seven months before gaining momentum in May. This rally continued in the subsequent months, allowing it to cross its IPO price of ₹ 1,960 for the first time in early June, a level it has held since. The bullish momentum in Hyundai Motor's share price is being supported by strong technical indicators, positive outlooks from leading brokerages, and improving sentiment in the broader Indian market. Together, these factors have helped the stock break out of its consolidation phase, delivering solid returns to IPO investors who remained invested. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
India.com
2 days ago
- India.com
Big update on LIC: Govt plans to sell large shareholding, Motilal Oswal, IDBI Capital likely to act as…, final decision to be taken after…; Details here
The central government is once again preparing to sell part of its stake in the country's largest insurance company, LIC. According to reports, in the first phase of disinvestment, Life Insurance Corporation may sell about 3 per cent of its shares. Motilal Oswal and IDBI Capital are likely to act as bankers for this offer-for-sale. A Business Today report, quoting sources, said the government plans to begin roadshows in the next two weeks to promote its planned disinvestment in LIC. In the first phase, it is considering selling between 2.5 per cent and 3 per cent of its stake. However, the exact percentage of shares to be sold and the offer-for-sale price will be finalised only after the roadshows are completed. Government's disinvestment target Currently, the government holds 96.5 per cent stake in LIC. Market regulator SEBI has directed the insurer to increase its public shareholding from 3.5 per cent to 10 per cent by May 16, 2027. For FY26, the central government's overall disinvestment target is Rs. 47,000 crore, and selling part of its stake in LIC could be a major step toward achieving it. Reports estimate that in the first phase of the LIC stake sale, the government could raise between Rs. 14,000 crore and Rs. 17,000 crore. LIC's share price On Tuesday, despite overall gains in the stock market, LIC's share price fell sharply. The stock opened at Rs. 916, rose briefly to Rs. 920 in early trade, but then declined throughout the day, closing 3.24 per cent lower at Rs. 886.85. With this drop, LIC's market capitalisation fell to Rs. 5.59 lakh crore. Stake sold earlier through IPO This is not the first time the government has sold part of its stake in LIC. In May 2022, it sold 2.5 per cent of its total equity through the LIC IPO. The issue opened for subscription on May 4, 2022, and closed on May 9, 2022. The IPO was subscribed nearly three times, helping the government raise Rs. 20,557 crore from the sale.
&w=3840&q=100)
Business Standard
2 days ago
- Business Standard
ONGC Q1: Brokerages split on weak crude view, trimmed production targets
ONGC in focus after Q1 results: Oil and Natural Gas Corporation (ONGC) posted a mixed set of results in the June quarter of FY26 (Q1FY26), with profitability improving but revenues under pressure, triggering a divided view among brokerages on the upstream oil and gas major's prospects. Profit growth despite revenue dip For the June quarter, ONGC's consolidated net profit rose 18.2 per cent year-on-year (Y-o-Y) to ₹11,554 crore, aided by lower expenses, even as consolidated gross revenue fell 3.5 per cent to ₹1,63,108 crore from ₹1,68,968 crore in Q1FY25. Net profit attributable to owners came in at ₹9,804 crore, up 13.7 per cent from ₹8,617 crore a year earlier. On a standalone basis, gross revenue dropped 9.3 per cent Y-o-Y to ₹32,003 crore, while net profit fell 10.2 per cent to ₹8,024 crore from ₹8,938 crore last year. Sequentially, however, the standalone net profit jumped 24.4 per cent, while Ebitda margins improved to 58.3 per cent from 54.3 per cent in the previous quarter. Crude oil production saw a modest uptick, with standalone output up 1.2 per cent Y-o-Y at 4.683 million metric tonnes (MMT), and total production including joint ventures (JVs) at 4.933 MMT versus 4.878 MMT last year. Condensate production rose to 0.250 MMT from 0.225 MMT. Natural gas output was broadly flat at 4.846 billion cubic metres (BCM) on a standalone basis, while total gas output, including JVs, slipped marginally to 4.971 BCM from 4.989 BCM. Realisation from crude oil under the nominated category dropped to$66.13/bbl from $83.05/bbl a year ago, reflecting softer global prices. Gas prices improved slightly to ₹6.64/mmbtu for nomination gas and stood at ₹8.26/mmbtu for higher-priced New Well Gas (NWG), which contributed ₹1,703 crore in revenue, including a ₹333 crore premium over the domestic administered price. The company announced two offshore discoveries in the quarter. 'ONGC declared a total 2 discoveries (both offshore) during Q1FY26 in its operated acreages. Out of these, one is prospect and one is pool discovery,' the company said, in a statement. ALSO READ | Brokerages take varied stance Motilal Oswal said ONGC's Q1 revenue came in 5 per cent above estimates at ₹32,000 crore, with oil and gas sales volumes broadly in-line. Ebitda was 12 per cent ahead of forecasts, though profitability was impacted by higher depreciation, dry well write-offs, and lower other income. The brokerage, however, remains cautious. 'Upstream has remained our least preferred sector since June 2024 amid record-high OPEC+ spare capacity and weak crude price outlook,' it said, noting ONGC's struggle to boost production. Citing muted earnings growth and aggressive volume guidance, it cut FY26/FY27 standalone earnings estimates by 6 per cent/11 per cent and downgraded the stock to 'Neutral' with a ₹230 target price. Nuvama Institutional Equities also flagged concerns after ONGC trimmed its production guidance to 4-7 per cent for FY26E and 2-4 per cent for FY27E, citing delays in the KG-DWN-98/2 block. 'Gas realisation is set to improve as the share of higher-priced New Well Gas increases,' Nuvama said, but maintained a 'Reduce' rating with a ₹225 target, pointing to a bearish crude outlook and muted output growth. JM Financial struck a more upbeat tone, highlighting that standalone Ebitda of ₹1.87 trillion was considerably above its estimate due to lower operating expenses and slightly better volumes and realisations. PAT of ₹8,024 crore was well ahead of its forecast, despite lower other income. The brokerage reiterated a 'Buy' with an unchanged target of ₹285, based on Brent crude assumptions of US$70/bbl and expectations of 8-10 per cent cumulative output growth over FY26-28 from KG DWN-98/2 and Western offshore projects. It also pointed to ONGC's robust dividend yield of 4-5 per cent and attractive valuations at 5.6x FY27E consolidated EPS. ALSO READ | ONGC outlook While ONGC continues to benefit from cost discipline and incremental gas realisation gains from new wells, the path ahead hinges on crude price trends and execution of its production growth plans. With brokerages split between cautious and bullish calls, investors are likely to watch both commodity markets and ONGC's operational delivery closely in the coming quarters.
