Motilal Oswal Asset Management Company (MOAMC) has announced the launch of 2 passive funds i.e, Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund and Motilal Oswal S&P BSE Healthcare ETF. Both the NFOs open on 14 July 2022 and close on 22 July 2022.
The Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund will be the first of its kind passive fund that aims to provide exposure to the financial services sector, excluding banks. The index will include top 30 non-banking financial stocks from S&P BSE 250 Large Midcap Total Return Index with a maximum stock weight capped at 15%. The index will be rebalanced semi-annually in June and December. Currently, the index includes stocks of Housing finance companies, NBFCs, Exchanges, Asset Management Companies, Insurance, Card Payment & Fintech etc. The S&P BSE Healthcare Total Return Index is designed to provide investors exposure to companies included in the S&P BSE All Cap that are classified as members of the healthcare sector. It is reconstituted annually in September. At present, the index is composed of 97 constituents spanning Pharmaceuticals, Hospitals, Diagnostic, Medical Equipment etc. This covers more than 99% of the listed Healthcare universe in terms of market capitalization.
Navin Agarwal, MD & CEO, Motilal Oswal Asset Management Company Ltd said, “With India’s urban population set to grow to 50% from the current 35%, the migration will trigger transfer of money from old assets (term deposits) to new assets (capital markets & insurance) and the rise in consumption economy i.e. high demand for credit.” He further added, “At Motilal Oswal AMC, we target to provide options of passive funds across key segments. The healthcare industry has grown 14x in the past 14 years and may continue growing rapidly on the back of increased insurance adoption, medical tourism, and rising incomes. Government’s plan to ramp up spending and provide healthcare facilities to the economically weaker section will also boost the domestic healthcare sector.”
Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company Ltd said, “Motilal Oswal S&P BSE Financial Services ex Bank 30 Index Fund offers investor first of its kind opportunity to invest in the non-banking financial sector. The fund will enable Indian investors to capitalize on the growth of financialization of assets, shifting consumer mindset from saving to investing and benefit from the companies that will gain from the consumption theme.”