Why India's Defence Sector is going to Boost, Defence Mutual Fund with just Rs 500

Invest in the Defence Mutual Fund with just Rs 500: Are You Ready to Boost Your Portfolio with India's Defence Sector?

Indian investors are increasingly turning their attention to the defence sector. Are you among them? If not, here's why you should consider adding the Motilal Oswal Nifty India Defence Index Fund to your investment wishlist.

What is the Motilal Oswal Nifty India Defence Index Fund?

Source :Times Now

Motilal Oswal Mutual Fund has introduced an open-ended index fund designed to replicate the performance of the Nifty India Defence Total Return Index. This fund invests in companies within the index, reflecting the growth potential of India's defence sector. With a minimum investment of just Rs 500, you can start your journey into this high-growth sector.

New Fund Offer (NFO) Period: June 13, 2024 - June 24, 2024
Minimum Investment: Rs 500
Entry Load: None
Exit Load: 1% if redeemed within 15 days of allotment

Objectives and Investment Strategy

The primary goal of the Motilal Oswal Nifty India Defence Index Fund is to achieve returns that closely mirror the Nifty India Defence Total Return Index before accounting for expenses and tracking errors. However, there is no guarantee that the fund will achieve its investment objectives.

Fund Allocation:

95-100% of net assets in constituents of the Nifty India Defence Index (High-Risk Profile)
Up to 5% in units of liquid schemes and money market instruments (Low-Risk Profile)

Performance Benchmark

The fund's performance will be measured against the Nifty India Defence Total Return Index, ensuring alignment with the sector's overall growth.

Meet the Fund Managers

Swapnil Mayekar: With a Master of Commerce degree in Finance Management and over 13 years of experience, Swapnil has been with Motilal Oswal since its inception in 2010. His background in financial research and analysis makes him well-suited to manage this fund.

Rakesh Shetty: Holding a Bachelor of Commerce degree and with more than 14 years of experience, Rakesh oversees the debt component of the fund. His expertise in trading across equity and debt segments and managing ETFs adds significant value to the fund's management.

Why Invest in the Defence Sector?

India's Defence Sector Potential:

Strong Growth: The Nifty India Defence Index has shown impressive growth, with a CAGR of 177% over the past year and 89.5% over three years as of May 31, 2024.
Significant Opportunities: Nomura's research estimates a $138 billion pipeline in India's defence sector between FY24 and FY32.
Government Initiatives: Policies like the 'Atmanirbhar Bharat' initiative and an embargo on over 4,600 defence items by December 2027 aim to boost domestic manufacturing and defence exports.

Expert Insights:

Prateek Agrawal, MD & CEO of MOAMC: "India's focus on self-reliance in defence is driving significant growth and innovation."
Pratik Oswal, Chief of Business Passive Funds, MOAMC: "The 'Made in India' initiatives have led to a 74% increase in FDI flows, driving the sector's expansion."

Summary:

The Motilal Oswal Nifty India Defence Index Fund offers a unique opportunity to invest in India's rapidly growing defence sector. With its low entry point and potential for high returns, this fund is worth considering for both new and experienced investors looking for long-term growth.