Mutual Fund Scheme: Motilal Oswal Asset Management Company has launched a new scheme of mutual funds. Its name is Motilal Oswal 5 Year G-Sec ETF. This is the company’s first ETF in the 5 Year G-Sec category. The scheme has been opened for NFO investment from 23 November. Investors will be able to invest in it by 2 December 2020. According to the fund house, this fund will track the ‘Nifty 5th Year Benchmark G-Sec Index’. It will have securities like index. Its return will be like index. This will be subject to return tracking error.
The minimum application amount will be Rs 500 during NFO. At the same time, this ETF will help investors in completing the asset allocation. According to Motilal Oswal Asset Management Company, ‘Motilal Oswal 5 Year G-Sec ETF will invest in securities included in the Nifty 5 Year Benchmark G-Sec Index, which will have a duration of 4 years.
Good investment option
Currently, the focus of investors is on such options, where their money is safe and stable returns can be made. These options include FD, RD, Tax Free Bonds and Government Securities, as well as ETFs. The ETF gives the option of FD schemes of the bank to the investors. In this too, the risk is very less and investors get better pre and post tax returns.
Money protection, along with benefits
According to Motilal Oswal, the biggest priority of investors in the debt segment is the security of their money. ETF is the right option for investors if they want better tax advantage than FD with security. With the launch of this ETF, it will be easier for investors to invest in 5-year government securities. Here, there is a scope of return with low cost of investment. Government securities are issued by the central and state governments, due to which they are protected. There are many such government securities, in which the returns for the last 5 years range from 7 to 10 per cent annually.