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Motilal Oswal Mutual Fund has launched Motilal Oswal S&P BSE Financials ex Bank 30 Index Fund, an open-ended scheme replicating the S&P BSE Financials ex Bank 30 Total Return Index.
The fund will provide exposure to the financial services sector, excluding banks. The index will include top 30 non-banking financial stocks from S&P BSE 250 Large Midcap Total Return Index with a maximum stock weight capped at 15%. The index will be rebalanced semi-annually in June and December. Currently, the index includes stocks of housing finance companies, NBFCs, exchanges, AMCs, insurance, card payment and fintech .
In a press release, Navin Agarwal, MD & CEO, Motilal Oswal MF said, “With India’s urban population set to grow to 50% from the current 35%, the migration will trigger transfer of money from old assets (term deposits) to new assets (capital markets & insurance) and the rise in consumption economy i.e. high demand for credit. As a result of this, the financial service sector will stand to benefit.”
Pratik Oswal, Head of Passive Funds, Motilal Oswal MF said, “The fund will enable Indian investors to capitalize on the growth of financialization of assets, shifting consumer mindset from saving to investing and benefit from the companies that will gain from the consumption theme.”
