June 15, 2023
mayank
Motilal Oswal Nifty Microcap 250 Index Fund NFO
NFO opens on June 15, 2023
NFO will close on June 29, 2023
(Our detailed Guidance is given at the bottom of the Page)
Investment Strategy
The scheme seeks to provide returns that, before expenses, correspond to the total returns of the securities as represented by Nifty Microcap 250 Total Return Index, subject to tracking error.
Basic Details
| Fund House | Motilal Oswal Mutual Fund |
| Issue Open | 15 June 2023 |
| Issue Close | 29 June 2023 |
| Type | Open-ended |
| Category | Equity: Small Cap |
| Min. Investment(Rs) | 500 |
| Plans | Growth |
| Lock-in Period | NA |
| Exit Load | 1% for redemption within 15 days |
| Riskometer | Very High |
| Benchmark | Nifty Microcap 250 TRI |
About Benchmark Index
NSE Indices has developed the Nifty Microcap 250 Index which aims to track the performance of microcap stocks listed or permitted to trade on NSE. The index includes the top 250 companies beyond the Nifty 500 index constituents, selected based on their average full market capitalization. A stock’s weight is based on its free-float market capitalization
Index Variant: Nifty Microcap 250 Total Returns Index.
Past Performance of Benchmark Index
| Index Returns (%) | QTD | YTD | 1 Year | 5 Years | Since Inception |
| Price Return | 18.00 | 7.81 | 24.40 | 12.08 | 14.70 |
| Total Return | 18.03 | 7.93 | 25.35 | 13.10 | 16.02 |
| Statistics ## | 1 Year | 5 Years | Since Inception |
| Std. Deviation * | 17.01 | 22.36 | 23.40 |
| Beta (NIFTY 50) | 0.88 | 0.84 | 0.78 |
| Correlation (NIFTY 50) | 0.65 | 0.72 | 0.73 |
Fundamentals
| P/E | P/B | Dividend Yield |
| 20.71 | 2.21 | 0.95 |
Fund Manager
1) Swapnil P Mayekar
Education: Mr. Mayekar is an M.Com from Mumbai University and also holds an Advanced Diploma in Business Administration from Welingkar, Mumbai.
Experience: Prior to joining Motilal Oswal AMC he worked with Business Standard Limited from Aug 2005 to Feb 2010.
Past Performance of his Schemes
| Fund | Motilal Oswal Nifty 50 ETF Fund | It’s Benchmark | Motilal Oswal Nifty Midcap 100 ETF | It’s Benchmark |
| 1 Year | 20.46 | 21.47 | 30.82 | 29.40 |
| 3 Year | 24.69 | 25.50 | 34.65 | 34.52 |
| 5 Year | 12.74 | 12.98 | 13.61 | 14.56 |
| 7 Year | 13.49 | 14.34 | 15.00 | 17.25 |
| 10 Year | 13.24 | 14.26 | 17.03 | 19.44 |
AMC:
Motilal Oswal Asset Management Company Ltd.
Address: Motilal Oswal Towers – 10th Floor, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai – 400025
Website: http://www.motilaloswalmf.com
Registrar & Transfer Agent:
KFin Technologies Ltd.
Address: 303, Vamsee Estates, Opp. Big Bazaar, Ameerpet, Hyderabad – 500016
Website: www.karvymfs.com
Guidance for Motilal Oswal Nifty Microcap 250 Index Fund NFO by Paresh Gordhandas, C.A., Research Analyst.
Microcap stocks offer the potential for higher appreciation compared to large cap stocks. But at the same time they are also subject to higher volatility and higher risk. Micro cap stocks are generally less correlated with the broader market movements. They can help an investor amass great wealth, if appropriately chosen. The key words being ‘if appropriately chosen’.
Here is where the role of the Fund Manager comes in. Especially when it is a Micro-cap Fund. Choosing stocks for a large cap fund is comparatively much easier than those for a Micro-Cap Fund.
We have done a sample comparison of the funds managed by the Fund Manager(FM). You can refer the tables above for the same. If you take a look, you will notice that the performance is not that impressive.
Also, micro-cap funds should only form a small part of your Mutual Fund portfolio. Hence, a small amount can be invested in this fund looking at the high growth potential offered by micro-cap stocks.
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