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Motilal Oswal MF has launched the Motilal Oswal Nifty India Defence Index Fund, an open-ended fund that will track the performance of the Nifty India Defence Index.
The underlying index has 15 stocks which operate in manufacturing and servicing of defense projects.
In a press release Prateek Agrawal, MD & CEO, Motilal Oswal MF said, “India’s strides towards Atmanirbharta (Self-Reliance) in defence is paving the way for significant growth and innovation. With the fund, we aim to capitalize on the projected $100 billion to $120 billion expansion in the defence sector over the next six years. As the fourth largest defence spender globally, India's focus on self-reliance and modernization offers substantial opportunities for domestic defence companies. This fund is poised to benefit from India's robust advancements in defence technology and infrastructure.”
Pratik Oswal, Chief of Business Passive Funds, Motilal Oswal MF said, “Since the Covid era, the Nifty India Defence TRI Index has outperformed the Nifty 50 TRI four times in the last six calendar years. This is the outcome of the government's unwavering concentration on fostering bilateral ties between nations in order to boost exports and lower imports as a part of strategic changes in government policies. As a result, India’s capabilities in the manufacturing sector is growing at a rapid pace.
Made in India initiatives have resulted in a notable 74% increase in FDI flows, which is driving the defence sector's expansion.”
