India's capital market has emerged as one of the fastest-growing investment destinations, with the Nifty 50 delivering consistent returns over the past decades. This growth presents a unique opportunity through the latest NFO (New Fund Offer) of Motilal Oswal Nifty Capital Market Index Fund. The Motilal Oswal Nifty Capital Market Index Fund aims to capture this market potential through a systematic, index-based approach. This fund follows the proven strategy of the successful Motilal Oswal Nifty 50 Index Fund while focusing specifically on capital market opportunities.
Key Features
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Feature
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Details
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NFO Period
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26th Nov. to 10th Dec. 2024
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Type of Scheme
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An open-ended fund replicating/tracking the Nifty Capital Market Total Return Index
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Minimum Application Amount
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₹500/- and in multiples of Re 1/- thereafter
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Benchmark
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Nifty Capital Market Total Return Index
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Load Structure
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Exit Load: 1% if redeemed on or before 15 days from allotment date; Nil if redeemed after 15 days from allotment date
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Investment Objective
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To provide returns corresponding to the total returns of securities as represented by Nifty Capital Market Total Return Index, subject to tracking error. No guarantee of achieving the investment objective.
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Fund Manager
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Mr. Swapnil Mayekar (For Equity Component)
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Mr. Rakesh Shetty (For Debt Component)
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Composition of Capital Market Index
The composition of the Capital Market Index is divided into four major segments, reflecting the weightage of key industries within the capital markets. The largest segment, Exchange & Data Platforms, holds 37% of the index, with major contributors being BSE Limited (21%), Multi Commodity Exchange (11%), and Indian Energy Exchange (5%).
The next significant category, Asset Management Companies (AMCs), accounts for 23% of the index, dominated by HDFC AMC (15%), followed by Nippon India AMC (4%), Aditya Birla Sun Life AMC (2%), and UTI AMC (2%).
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Depositories, Clearing Houses, and Other Intermediaries contribute 20%, with CDSL taking the lead at 9%, followed by CAMS (7%) and KFin Technologies (4%). The final segment, Stockbroking, Financial Product Distributors, and Allied Services, also represents 20%, with key players including Angle One (6%), 360 One (5%), Motilal Oswal Financial Services (5%), Anand Rathi Wealth (2%), and Nuvama Wealth (2%). These proportions highlight the diversified nature of the index, focusing on vital sectors that underpin the functioning of capital markets.
Benefits
The Nifty Capital Market Total Return Index is driven by four key factors: the shift from traditional savings to financial instruments, digitization boosting market access and efficiency, growing investor participation, and untapped potential in underpenetrated markets. These attributes highlight the growth and opportunities in India's capital markets.
The Nifty Capital Market Index has shown strong performance, delivering 96.90% returns over the past year and a 34.80% compound annual growth rate (CAGR) over the last five years.
Conclusion
The Motilal Oswal Nifty Capital Market Index Fund presents a strategic gateway into India's thriving capital markets. This fund combines professional management expertise with a systematic approach through its focused and regular rebalancing mechanisms. Market statistics paint a clear picture - with demat accounts surging from 4 crore to 14 crore and younger investors driving participation, the Indian capital market stands poised for sustained growth. The fund's structure captures this potential while maintaining risk management through weight caps and diversification.
The combination of technological advancement, regulatory oversight, and professional fund management creates a robust foundation for long-term wealth creation through India's capital markets. This index fund serves as an efficient vehicle for investors ready to participate in the next phase of India's market evolution.
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