What are your thoughts on Motilal Oswal Nifty 500 Fund?

Personal finance
23

I compared the Motilal Oswal Nifty 500 Index using Fund Overlap tool with the below well-known MFs AMCs (Direct Growth) and the results are as followed:

  1. Canara Rob Emerging Equities = 99%
  2. PGIM India MidCap Opportunities = 92%
  3. Nippon India Small Cap = 75%
  4. Parag Parikh Flexi Cap = 79%
  5. UTI Nifty 50 Index = 99%
  6. UTI Nifty Next 50 Index = 86%
  7. HDFC Index Fund-S&P BSE Sensex = 96%
  8. ICICI Pru Multi-Asset = 97%

Can someone throws some light that it is still not worth doing SIP in Motilal Oswal Nifty 500 Index only?

24

Which tool did you use to get the numbers you shared,
and what exactly do those percentage numbers mean?

For example,
using a fund overlap tool available at Mutual funds overlap - PrimeInvestor
that calculates overlap
based on common weights of stocks between the funds,
and not on just the number of common stocks…

image
image1335×230 25.1 KB

…we get different percentage-overlap numbers (42% instead of 99% in the above case).

1 Like
25

I used Fund Overlap tool from Invest Yadnya (About Us - Transparent & Affordable Financial Research | Investyadnya)

The percentage refers to total number of stocks currently present in the respective AMCs

NOTE: The portfolio overlap percentage is differ from AMC to AMC. For example: In Motilal Oswal Nifty 500 the Infosys allocation is 4.83% whereas in Canara Rob Emerging Equities the Infosys allocation is 4.64%.

26

That’s one reason why the Motilal Oswal Nifty 500 Index fund will not replicate the performance of the other 8 index funds you mentioned. i.e. investing in this single fund is not the same as investing in any/all the other 8 funds.

1 Like
27

Ok. @cvs Thanks for your inputs.