Motilal Oswal S&P BSE Healthcare ETF NFO is open for subscription

Motilal Oswal Mutual Fund’s Motilal Oswal S&P BSE Healthcare ETF is now open for subscription. It’s an open-ended scheme monitoring the S&P BSE Healthcare Whole Return Index. The NFO opened on 14 July and closed 22 July 2022.

The S&P BSE Healthcare Whole Return Index is designed to offer buyers publicity to firms included within the S&P BSE All Cap which can be categorised as members of the healthcare sector, an organization launch stated. The index is reconstituted yearly in September. 

At current, the index includes 97 constituents spanning prescription drugs, hospitals, diagnostic, medical tools and so forth. This covers greater than 99% of the listed healthcare universe by way of market capitalization. As of June 2022, the index constitutes Solar Prescribed drugs Industries Ltd, Dr. Reddy’s Laboratories Ltd, Cipla Ltd., Divis laboratories Ltd. and Apollo Hospitals Enterprise Ltd. The highest 10 shares account for near 62% of weight within the index. When it comes to trade breakup – pharmaceutical is the biggest with its weight near 81% adopted by hospitals (14%) and healthcare providers (3%) forming into the highest 3. The index affords wholesome publicity to mid and small-size healthcare firms with the bulk weight going to large-cap firms.

“At Motilal Oswal AMC, we goal to offer choices of passive funds throughout key segments. The healthcare trade has grown 14x prior to now 14 years and will proceed rising quickly on the again of elevated insurance coverage adoption, medical tourism, and rising incomes. The pandemic has bolstered the significance of healthcare services in India. Authorities’s plan to ramp up spending and supply healthcare services to the economically weaker part will even increase the home healthcare sector,” stated Navin Agarwal, MD & CEO, Motilal Oswal Asset Administration Firm Ltd.

Traditionally healthcare as a sector is taken into account as a defensive play, and it has skilled decrease drawdowns, stated Pratik Oswal, head of passive funds, Motilal Oswal Asset Administration Firm. Not like cyclical sectors, demand for healthcare is resilient and fewer impacted by financial swings. “By protecting 99% of the healthcare universe, the Motilal Oswal S&P BSE Healthcare ETF affords the broadest publicity amongst its peer at decrease expense ratio,” he added.

Throughout NFO, buyers can make investments minimal 500 and in multiples of 1 thereafter. After NFO, buyers should purchase/promote items of the scheme in a spherical lot of 1 unit and in multiples thereafter on the alternate or they will strategy Motilal Oswal Mutual fund for subscription/redemption in extra of 25 crores.

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