Looking to invest in US market? Subscription for Motilal Oswal S&P 500 Index Fund opens tomorrow

Motilal Oswal S&P 500® Index Fund will open for subscription on April 15 and will close on April 23

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If you wish to invest in companies based out of the US are looking to diversify your portfolio, then do check out the latest launch by Motilal Oswal Asset Management Company. On April 13, the company announced the launch of the Motilal Oswal S&P 500® Index Fund, an open-ended scheme replicating/tracking the S&P 500® Index.

Motilal Oswal S&P 500® Index Fund will open for subscription on April 15 and will close on April 23.

The minimum application amount is Rs 500 and in multiples of Re 1 thereafter. The fund managers for this scheme are Herin Visaria for foreign securities and Abhiroop Mukherjee for the debt component.

Motilal Oswal S&P 500 Index Fund will provide Indian investors the opportunity to partake in the performance of leading 500 companies listed in the US, the company said.

The S&P 500 Index is widely regarded as the best single gauge of largecap US equities and covers approximately 80 percent of the available market. Some of the big-ticket companies which are part of the index include names like Microsoft, Apple, Amazon, Facebook, J&J, Visa, Alphabet (Google), among others.

The S&P 500 Index is the world’s largest index with a track record of 63 years, making it one of the oldest indices in the world.

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“If you entered the Indian equity markets and you had no clue where to start you would start with the A group in BSE. Similarly, if you entered the global equity markets from another planet and you had no clue where to start you would start with S&P 500. It’s the world’s A group or the world’s largecap index composed of some of the biggest global companies,” Aashish Somaiyaa, Managing Director & CEO, Motilal Oswal Asset Management Company, explained.

The S&P 500® index is the best gauge of the US market as it constitutes 82 percent of the US stock market. It has exposure to all 11 sectors and has exposure to purely largecap companies, Motilal Oswal said in a press release.

It is a global index with 40 percent of its investments coming from overseas. After the recent correction, the S&P 500® Index may have arrived at an attractive valuation to enter.

“With the launch of the S&P500 index fund - we are excited to have Jack Bogle's legacy and spirit in India (Founder, Vanguard Mutual Fund). It’s a fund that is present in almost every investor’s portfolio in the US and a great way to start the process of international diversification – helping Indian investors fight rupee depreciation as well as portfolio volatility,” Pratik Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company said.

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First Published on Apr 13, 2020 08:55 pm