First-in-India: This mutual fund tracks top 1,000 listed companies
What's the story
Motilal Oswal has launched the BSE 1000 Index Fund, the first mutual fund in India to track the BSE 1000 Total Return Index. The new fund offer (NFO) will be open for subscription from tomorrow to June 19, 2025. The fund wants to replicate the performance of the BSE 1000 Total Return Index, which covers the country's top 1,000 listed companies across large, mid, small, and micro-cap segments.
Fund details
A look at the fund
The fund's primary goal is to deliver returns closely tracking the index, subject to a tracking error. The minimum investment during the NFO period and thereafter is ₹500. An exit load of 1% will be applicable if units are redeemed within 15 days of allotment, after which there will be no exit load. The fund shall be co-managed by Swapnil Mayekar (Equity component), Dishant Mehta (Associate - Equity), and Rakesh Shetty (Debt component).
Investment strategy
Fund offers broad diversification
The BSE 1000 Index Fund offers broad diversification, with the top 10 shares capped at roughly 33% weight to reduce concentration risk. It also comprises exposure to growing micro-cap companies. This product is intended for investors who seek long-term capital growth via a passive investment strategy tied to India's overall market performance.
Market perspective
BSE 1000 TRI reflects India's broad equity market
The BSE 1000 Total Return Index provides semi-annually rebalanced exposure to India's broad equity market. Asia Index, which developed the BSE 1000 Index, emphasized that it reflects the deepening of India's capital markets and offers a mix of established and emerging companies.