The minimum application amount during NFO is Rs.500 and thereafter in multiples of Rs.1/-. The debt portion of the fund will be managed by Abhirup Mukherjee and the foreign securities will be managed by Ankush Sood. The NFO subscription will close on November 25.
According to the press release, Motilal Oswal MSCI EAFE Top 100 Select Index Fund is the only fund that has a culmination of investments in 10 most innovative economies across the world (Switzerland, Germany, Sweden, Netherlands, Japan, France, UK, Australia). Spain and Hong Kong). The Fund’s highest weighted countries are the UK (20.4%), Japan (19%), France (15.2%), Switzerland (14.7%) and Germany (11.2%), making it India’s most well-diversified fund offering. Huh. It invests in 10 sectors, with financials, healthcare, consumer discretionary, consumer staples, industry and information technology accounting for 83% of the fund’s sectoral exposure.
The fund has selected 100 companies out of the EAFE 10 universe based on adjusted market capitalization. The MSCI EAFE Top 100 Select Index has a maximum of 10 countries and 100 constituents, the press release said. The top 10 constituents accounted for 25.8% of the total, with the largest component accounting for 4.1%. The fund will be rebalanced quarterly and capped at 40% by country weight.
“This fund is yet another effort to help our investors build a well-diversified portfolio from global assets. Motilal Oswal MSCI EAFE Top 100 Select Index Fund offers investors a diverse basket of investments where they can access markets outside the US that offer diversification benefits on account of various return drivers. The fund would be suitable for investors who wish to diversify their portfolio across different geographies, which can be used as a diversification tool to reduce volatility in Indian equities. Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company Limited said.
“The fund aims to provide exposure to well-known global brands present in developed markets excluding the US and Canada. The fund will cover key regions such as Europe, Australia and the Far East that have shown high stability with low country exposure. The MSCI EAFE index has a 42% and 57% correlation with the Nifty 500 and S&P 500 respectively. Today, most global investment is concentrated in the US – but it is imperative that investors build a global portfolio with countries and geographies outside the US. Developed markets are the largest non-US category and we are excited to introduce it to investors in India. Furthermore, while the US and emerging markets have greater exposure to the technology sector, the MSCI EAFE is more widely diversified. The fund offers debt taxation with indexation benefits after 3 years,” said Prateek Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company Limited.
The iShares Core MSCI EAFE ETF (Developed Markets excluding US), tracks the MSCI EAFE Index, one of the largest non-US ETF themes with an AUM of $102.5 billion globally. It is the parent index of ‘MSCI EAFE Top 100 Select Index’, which is an underlying index for ‘Motilal Oswal MSCI EAFE Top 100 Select Index Fund’.