Motilal Oswal Asset Allocation Passive Fund of Fund NFO
Motilal Oswal Mutual Fund has announced the launch of Motilal Oswal Asset Allocation Passive Fund of Fund. The scheme would be investing its assets in passive funds like ETF or Index funds of equity & equity-related instruments, gold, and fixed income.
The New Fund Offer (NFO) starts from 19th February 2021 and will end on 05th March 2021. The fund will reopen for continuous sale and repurchase within 5 business days from the date of allotment.
Different plans available under the scheme are:
- Aggressive Plan
- Conservative Plan
Investment Objective
The investment objective of the scheme is to provide long-term capital growth by investing its assets in passive funds like ETF or Index funds of equity & equity-related instruments, gold, and fixed income.
Features
- The Fund will be investing a minimum of 95% of its assets in units of specified mutual fund schemes.
- The fund aims to give exposure to different asset classes by doing passive investments in different funds.
- Fund will give exposure to its investors of the equity, gold, and fixed income instruments.
Why invest in Motilal Oswal Asset Allocation Passive Fund of Fund?
- The fund gives the benefit of diversification via investments in different asset classes like equity, gold, fixed income, and debt. All these asset classes have a low correlation.
- This fund gives an option to the investors to select the investment portfolio as per their risk appetite, it has two plans: Aggressive plan and Conservative plan.
- The fund offers a low-cost investment as all the underlying assets are passive investments in funds.
- As it is a Fund of Fund scheme, it follows a rule-based portfolio rebalancing strategy. It helps the weightage of assets to stay in line with the target asset allocation.
Who Should Invest?
This scheme is suitable for investors who are -
- Interested in long-term capital growth.
- Interested in the passive investment of equity & equity-related instruments, gold, and fixed income.
- Interested in earning returns through investment in passive funds like ETF or index funds.
- Recommended for investors with an investment horizon of 5 years & above.
Asset Allocation Pattern-
For Aggressive Plan:
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Units of specified mutual fund schemes* | 95% | 100% | Moderate to High |
| Units of Liquid schemes/Money Market Instruments | 0% | 5% | Low to Moderate |
*The specified schemes under aggressive portfolio are:
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Domestic Equity: Motilal Oswal Nifty 500 Index Fund or Motilal Oswal M50 ETF or Similar Domestic Equity Passive Funds | 40% | 90% | High |
| International Equity: Motilal Oswal S&P 500 Index Fund or Motilal Oswal NASDAQ 100 ETF | 10% | 30% | High |
| Debt: Motilal Oswal 5 Year G-Sec ETF or Similar Domestic G-Sec Passive Funds | 0% | 40% | Low to Moderate |
| Commodity: ICICI Prudential Gold ETF or Similar Domestic Gold Exchange Traded Funds | 0% | 20% | Moderate |
For Conservative Plan:
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Units of specified mutual fund schemes** | 95% | 100% | Moderate to High |
| Units of Liquid schemes/Money Market Instruments | 0% | 5% | Low to Moderate |
**Units of specified schemes of Mutual Fund are:
| Instruments | Minimum % of total assets (Indicative) | Maximum % of total assets (Indicative) | Risk Profile |
| Domestic Equity: Motilal Oswal Nifty 500 Index Fund or Motilal Oswal M50 ETF or Similar Domestic Equity Passive Funds | 0% | 40% | High |
| International Equity: Motilal Oswal S&P 500 Index Fund or Motilal Oswal NASDAQ 100 ETF | 0% | 20% | High |
| Debt: Motilal Oswal 5 Year G-Sec ETF or Similar Domestic G-Sec Passive Funds | 40% | 90% | Low to Moderate |
| Commodity: Nippon India ETF Gold BeES or ICICI Prudential Gold ETF or Similar Domestic Gold Exchange Traded Funds | 0% | 20% | Moderate |
About the scheme-
| Name of the fund | Motilal Oswal Asset Allocation Passive Fund of Fund |
| Fund launched by | Motilal Oswal Mutual Fund |
| Asset Management Company | Motilal Oswal Asset Management Company Limited |
| Type of scheme | An open-ended fund of fund scheme that will be investing in passive funds. |
| Investment Objective | The investment objective of the scheme is to generate long-term capital growth by investing its assets in passive funds like ETF or Index funds of equity & equity-related instruments, gold, and fixed income. |
| Benchmark |
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| Entry Load | Not Applicable |
| Exit Load | 1% of applicable NAV - If units are redeemed or switched out within 15 days. Nil - If units are redeemed or switched out after 15 days. |
| Total expense ratio* |
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| Minimum Application Amount | ₹ 500 & in multiple of ₹ 1 thereafter |
| Minimum Additional Amount | ₹ 500 & in multiple of ₹ 1 thereafter |
| STP, & SWP | Available |
| Plans Available |
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| Options |
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| Fund Managers | Mr. Swapnil Mayekar (Equity and Gold), Mr. Herin Visaria (International Equity), and Mr. Abhiroop Mukherjee (Debt) |
*Investors will have to bear weighted average expenses of the underlying schemes in addition to the mentioned expense. The indicative weighted average expense is:
For aggressive plan: 0.41% and For conservative plan: 0.34%.
SIP Details
| Type | Minimum Installments | Minimum Amount |
| Weekly SIP | 12 | ₹500 & in multiples of ₹1 thereafter |
| Fortnightly SIP | 12 | ₹500 & in multiples of ₹1 thereafter |
| Monthly SIP | 12 | ₹500 & in multiples of ₹1 thereafter |
| Quarterly SIP | 4 | ₹1,500 & in multiples of ₹1 thereafter |
| Annual SIP | 1 | ₹6,000 & in multiples of ₹1 thereafter |