Investing in mutual funds is riddled with a set of challenges. A large number of investors, therefore, place their bets on index mutual funds which are relatively safer. Among index funds, the top-performing ones include Motilal Oswal Nifty 500 Index Fund which has given a CAGR of 18.6193 percent since inception.
In other words, an investment of ₹10,000 would have grown to ₹16,886 by now. Also, if someone had invested via SIP of ₹10,000 every month, the accumulated savings would have grown to ₹5,02,463.
Nifty 500 index is the broadest benchmark index covering 92 percent of India's listed universe. It offers a blend of large, mid and small cap stocks with overweight to large cap.
Return since inception
The fund scheme's return since inception was highest vis-a-vis its peers such as TATA S&P BSE Sensex Index Fund with a return of 15.59 percent (since inception) and ICICI Prudential Nifty 50 Index Fund with 14.86 percent, according to SMC Trade Online data as on Oct 31, 2022.
The past three-year returns of Motilal Oswal Nifty 500 Index Fund gave 17.29 percent CAGR. The scheme was launched on September 6, 2019. Its latest AUM was ₹344. 749 crore and the benchmark index is Nifty 500 TRI.
The scheme's tracking error is 0.05 percent for a year ending Oct 31, 2022. The scheme invests in 500 companies and is meant for investors who are looking to invest in markets across large, mid and small cap stocks.
The scheme's fund manager is Swapnil Mayekar. Total expense ratio for regular scheme is 1.05 percent and 0.40 percent for direct scheme.
The key constituent stocks are Reliance, HDFC Bank, ICICI Bank, Infosys, HDFC, TCS, ITC, Kotak Mahindra Bank, Hindustan Unilever and L&T.
At the same time, the scheme has exposure to these sectors: Banks, IT, finance, petroleum products, diversified FMCG, automobiles, pharma, consumer durables, power and cement.
It covers all 21 sectors, out of which largest macro sector is financial services with 30.2 percent allocation and largest stock-wise allocation is to Reliance Industries with 7.1 percent.