Motilal Oswal S&P 500 Index Fund Review

Motilal Oswal S&P 500 Index Fund

Motilal Oswal Asset Management Company is launching an index fund that tracks the S&P 500 index.

New Fund Offer (NFO) details:
Open from April 15 to 23.
Minimum subscription amount is Rs.500.
The Total Expense Ratio (TER) for the S&P 500 index fund will be 1% for the regular plan and 0.5% in the direct plan.

Returns: The S&P 500 has given returns of 12.7% and 17.8% CAGR in rupee terms over the past 5 and 10 years respectively.
Compartively Nifty 500 has returned 6.3% and 9.6%.

Taxation: The returns of the fund will be taxed in the manner of Indian debt funds - slab rate for holding periods up to 3 years and 20% with indexation benefit for longer holding periods.

sp500 index fund india

The S&P 500 is a diversified index, covering 80% market cap of S&P 500 index. It trades below its 10-year moving average PE ratio, indicating favorable valuations relative to its own history.

For global diversification, this is a good diversified low-cost product to start with. One could take exposure for long term via Systematic Investment Plan.