The Motilal Oswal Nifty India Defence Index Fund is a type of passive investment that tracks the performance of the top firms in India’s defence sector. It offers a larger return than other funds, but the risk is higher because just one sector is taken into account when making an investment. Swapnil P Mayekar is the manager of the fund, which was launched on July 3, 2024. The fund’s asset under management (AUM) was 61,382 crore and its net asset value (NAV) was 9.36 as of August 16, 2024. The fund is rated as ‘Very High’ on the risk meter and has an expense ratio of 0.31%. Investors can benefit from the fund’s unique approach to the defence sector, which offers them targeted growth potential and strategic opportunities that are not available through the broader Nifty 50 Index Fund. The defence sector can be accessed through a diversified portfolio of defence stocks because the fund’s performance is directly linked to the index’s performance. The fund requires a SIP and lump sum investment of 500 and a 1% exit charge if units are redeemed in 15 days. This load of money is intended to promote long-term holding and portfolio stability. A stamp duty of 0.005% is added to all transactions.
Solar Industries India Limited
Mazagon Dock Shipbuilders Limited
Astra Microwave Products Limited
Garden Reach Shipbuilders & Engineers Limited
In 2000, India ranked ninth in terms of defence spending; by 2022, it had risen to the third rank. Over the past five years, defence exports have increased by 334%, and policy adjustments are intended to reduce imports by roughly 70%. The Defence Research and Development Organization’s (DRDO) budget is almost three times larger in FY24–25 than it was in FY2014–15.
Conclusion: Motilal Oswal Currently holding a fund of Rs. 2330.75 Cr, the Nifty India Defence Index Fund carries a high level of risk. As such, individual investors should proceed with caution or wait a year to make an investment before considering it.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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