Motilal Oswal Mutual Fund’s Motilal Oswal S&P BSE Healthcare ETF is now open for subscription. It is an open-ended scheme that tracks the S&P BSE Healthcare Total Return Index. NFO opened on 14th July and closed on 22nd July 2022.
The S&P BSE Healthcare Total Return Index is designed to provide investors with exposure to companies included in the S&P BSE All Cap, which are classified as members of the healthcare sector, a company release said. . The index is restructured annually in September.
Currently, the index comprises 97 components spread across pharmaceuticals, hospitals, diagnostics, medical devices, etc. It covers over 99% of the listed healthcare universe in terms of market capitalization. As of June 2022, the index includes Sun Pharmaceuticals Industries Ltd., Dr Reddy’s Laboratories Ltd., Cipla Ltd., Divis Laboratories Ltd. and Apollo Hospitals Enterprise Ltd. The top 10 stocks account for about 62% of the weight in the index. In terms of industry breakdown – pharmaceutical is the largest with close to 81 percent of its weight, followed by hospitals (14%) and healthcare (3%) in the top 3. The index provides healthy exposure to medium- and small-sized health companies. Most of the burden is going to large-cap companies.
“At Motilal Oswal AMC, we aim to provide passive fund options across key sectors. The healthcare industry has grown 14-fold over the past 14 years and can grow rapidly due to increased adoption of insurance, medical tourism and rising incomes. The pandemic has reinforced the importance of healthcare facilities in India. Navin Aggarwal, MD and CEO, Motilal Oswal Asset Management Company Limited, said that the government’s plan to increase expenditure and provide health facilities to the economically weaker section will also give a boost to the domestic health sector.
Prateek Oswal, Head of Passive Funds, Motilal Oswal Asset Management Company, said that historically healthcare as a sector has been considered a defensive game, and has experienced less downside. Unlike cyclical sectors, demand for healthcare is flexible and less affected by economic fluctuations. “By covering 99% of the healthcare industry, the Motilal Oswal S&P BSE Healthcare ETF offers broad exposure among its peers at a low expense ratio,” he added.
Minimum investment that investors can make during NFO in multiples of 500 and 1 after that. After NFO, investors can buy/sell the units of the scheme in round lots of 1 unit and then in multiples on the exchange or they can approach Motilal Oswal Mutual Fund for maximum subscription/redemption. 25 crores.
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