MOSt Shares M50 ETF lists on NSE today
Mumbai, Friday 30 July 2010: Motilal Oswal Mutual Fund's MOSt Shares M50 ETF, India's 1st fundamentally weighted ETF based on Nifty was listed on NSE today.
- (1888PressRelease) August 01, 2010 - The New Fund Offer (NFO) which was open for subscription from June 30, 2010 till July 19, 2010 raised over Rs 235 crores, making it the largest amount raised during the NFO by any equity ETF in the past 5 years. (Data source: Value Research Online.com).
Speaking on the occasion, Mr. Raamdeo Agrawal- Director, MOAMC said- "M50 is a next generation Mutual Fund product. The active thinking in the designing of the product and passive execution tries to combine the best investment principles of Focus & Discipline. This product is highly investor friendly with potential of superior returns."
MOSt Shares M50 NFO got a tremendous response from investors. It had higher retail participation than institutional participation. Perhaps the first time; BSE STAR and NSE MFSS platforms were open from 9am to 11pm even on Sunday(18th July 2010).
Mr. Nitin Rakesh- Managing Director & CEO, MOAMC said - "We are very enthused by the outcome of our NFO - it shows that there is demand for differentiated products that offer investor friendly features, especially low costs, real time prices and transparency"
About MOSt Shares M50
MOSt Shares M50 is an open ended Exchange Traded Fund (ETF), which seeks investment return that corresponds (before fees and expenses) generally to the performance of the MOSt 50 Basket (Underlying Basket), subject to tracking error. MOSt 50 Basket is a fundamentally weighted basket based on S&P CNX Nifty Index. The constituents of MOSt 50 Basket will be the same as the constituents of Nifty. The MOSt 50 Basket passively allocates weights to its constituents at the time of rebalancing based on the pre-defined methodology of the basket. Weights assigned to constituents are dependent on their fundamental performance and their prices with higher weights being assigned to constituents which have demonstrated superior financial performance and have reasonable valuation.
MOSt 50 Basket has been designed by Motilal Oswal Asset Management Company Ltd. (MOAMC) which owns the intellectual property of the methodology of the Basket. MOSt Shares M50 would invest in securities constituting the MOSt 50 Basket in same proportion as in the Basket.
For more information please contact:
Alpesh Nakrani / Anirudh Rajan
Paradigm Shift Public Relations
Mob: +91 9869121167 /
Tel: +91 22 22813797 / 98
Mr. Hari Krishnan
Motilal Oswal Asset Management Company Ltd
Mob: +91 9820520392
Ph: +91 22 39825500
Visit: www.motilaloswal.com/assetmanagement and www.mostshares.com for more details.
Statutory Details: Constitution: Motilal Oswal Mutual Fund has been set up as a trust under the Indian Trust Act, 1882. Trustee: Motilal Oswal Trustee Company Limited. Investment Manager: Motilal Oswal Asset Management Company Ltd. Sponsor: Motilal Oswal Securities Ltd.
Scheme Classification & Investment Objective: Motilal Oswal MOSt Shares M50 ETF (MOSt Shares M50), an open ended Exchange Traded Fund that seeks investment return that corresponds (before fees and expenses) generally to the performance of the MOSt 50 Basket (Underlying Basket), subject to tracking error. Asset Allocation: Securities constituting MOSt 50 Basket: 95%-100%; Debt and Money market instruments and cash at call: 0-5%. The total exposure to Derivatives would be restricted to 10% of the net assets of the Scheme. Load: Entry Load: Nil Exit Load: Nil Terms of Issue: Minimum Application Amount: On the Exchange: The units of the Scheme are listed on the Capital Market Segment on National Stock Exchange of India Ltd. (NSE). On NSE, the units of the Scheme can be purchased/sold in round lot of 1 unit and in multiples thereafter. Directly with the Fund: The minimum number of units of the Scheme that investors can create/redeem in exchange of portfolio deposit and cash component is 50,000 units and in multiples thereof. The NAV will be calculated and disclosed at the close of every Business Day. Risk Factors: (1) All Mutual Funds and securities investments are subject to market risks and there can be no assurance that the Scheme's objectives will be achieved (2) As the price / value / interest rates of the securities in which the Scheme invests fluctuates, the Net Asset Value (NAV) of units issued under the Scheme may go up or down depending upon the factors and forces affecting the securities market (3) Past performance of the Sponsor/AMC/Mutual Fund and its affiliates does not indicate the future performance of the Scheme and may not provide a basis of comparison with other investments (4) Motilal Oswal MOSt Shares M50 ETF (MOSt Shares M50) is the name of the Scheme and does not in any manner indicate either the quality of the Scheme, its future prospects and returns. Investors are therefore urged to study the terms of offer carefully and consult their Investment Advisor before they invest in the Scheme (5) The Sponsor is not responsible or liable for any loss or shortfall resulting from the operation of the Mutual Fund beyond the initial contribution made by it of an amount of Rs. 1 Lac towards setting up of the Mutual Fund (6) Motilal Oswal Asset Management Company Limited (MOAMC) has no previous experience in managing a Mutual Fund. The present Scheme is the first Scheme being launched under its management (7) The present Scheme is not a guaranteed or assured return Scheme. Scheme Specific Risk Factors: Investment in the scheme shall be subject to various other risk factors including but not limited to risk associated with investment in Equities such as trading volumes, settlement risk, liquidity risk, default risk, tracking error risk, calculating agent risk, Underlying Basket risk, risk associated with investment in derivatives, risk of fundamentally weighted Basket, risk of total return, etc.
IISL Disclaimer: The MOSt 50 Basket is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited (IISL). MOSt 50 Basket has been developed by MOAMC and IISL has calculated and maintained as per the specifications and requirements of MOAMC. IISL does not make any representation or warranty, express or implied regarding the advisability of investing in the products linked to MOSt 50 Basket and availing the services generally or particularly or the ability of MOSt 50 Basket to track general stock market performance in India. Please read the full Disclaimers in relation to the MOSt 50 Basket in the Scheme Information Document. S&P Disclaimer: "S&P®" and "Standard and Poor's®" are trademarks of S&P, and have been licensed for use by India Index Services & Products Limited in connection with the S&P CNX Nifty Index. MOSt Shares M50 is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited ("IISL") or Standard & Poor's ("S&P"), a Delaware limited liability company. Neither IISL nor S&P makes any representation or warranty, express or implied, to the owners of MOSt Shares M50 or any member of the public regarding the advisability of investing in securities generally or in MOSt Shares M50. Please read the full Disclaimers in relation to the S&P CNX Nifty Index in the Scheme Information Document. NSE Disclaimer: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Scheme Information Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Scheme Information Document. The investors are advised to refer to the Scheme Information Document for the full text of the 'Disclaimer Clause of NSE'.
For further Scheme Specific Risk Factors & other details, Please read the Scheme Information Document (SID) & Statement of Additional Information (SAI) carefully before investing. A copy of SID, SAI and KIM are available at the office of the AMC, R&T, Distributors, or can be downloaded from www.motilaloswal.com/assetmanagement and www.mostshares.com Investors can also contact us on our toll free number 1800-200-6626 or send email at mfservice ( @ ) motilaloswal dot com