The scheme is structured to provide diversified exposure across large-cap, mid-cap, and small-cap segments by investing predominantly in passive index funds and ETFs. It begins with an equal allocation across the three segments, which is reviewed quarterly and rebalanced if any segment deviates by ±5% from its target allocation.
This approach is designed to reduce the need for investors to time market rotations manually.
According to Motilal Oswal Asset Management Company (MOAMC), historical trends indicate that leadership among market-cap segments rotates over time, making it difficult to predict which segment will outperform. The fund’s strategy aims to maintain participation across market cycles by trimming outperforming segments and reallocating to underweighted ones.
The fund benchmarks the Nifty 500 Total Return Index and targets investors seeking long-term capital growth through passive fund exposure across all market-cap segments. The minimum investment during the NFO is ₹500, with additional investments in multiples of ₹1. For ongoing subscriptions, the minimum is also ₹500. An exit load of 1% applies if units are redeemed within 15 days of allotment; no exit load applies thereafter.
Pratik Oswal, Chief of Business – Passive Funds at MOAMC, said, “Market-cap leadership keeps changing, and trying to predict which segment may outperform next is challenging. This fund is designed to remove that guesswork, allowing investors to participate in market rotations through a transparent, disciplined framework.”
The equity component of the fund will be managed by Swapnil Mayekar, while the debt component will be managed by Rakesh Shetty.