Motilal Oswal Mutual Fund today said it will launch MOSt Shares Nasdaq 100, country's first US equity based exchange-traded fund (ETF), which seeks to track the Nasdaq-100 index.
The new fund offer will be open for subscription from March 16 and closes on March 23. The minimum investment amount during the NFO is Rs 10,000, and in multiples of Re 1 thereafter.
"The first of its kind ETF will provide investors in the country a good diversification option and access to leading global companies listed on the Nasdaq stock market," Motilal Oswal Asset Management Co's Managing Director & CEO Nitin Rakesh told reporters here.
Indian investors will be able to buy and sell ETF units during Exchange trading hours in India, he said.
MOSt Shares Nasdaq 100 will be listed on the NSE and BSE and investors will be able to buy or sell MOSt Shares Nasdaq 100 from both the bourses through their trading accounts with their brokers/sub-brokers at prices quoted on NSE or BSE.
The Nasdaq-100 is an index of 100 of the largest (by market capitalisation) non-financial companies listed on the Nasdaq.
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With the launch of Motilal Oswal Mutual Fund's MOSt Shares Nasdaq 100 fund offer, Indian investors will now have an exposure to top 100 domestic and international non-financial securities like Apple Inc, Google, Microsoft, Ebay and Amazon listed on the Nasdaq stock market.
Indian market indices have high capital allocation to sectors like financial services, energy, capital goods, materials and utilities.
In comparison, the Nasdaq-100 index provides investors with the opportunity to participate in the global growth of pharmaceuticals, healthcare, media, retailing, semiconductor, software and technology hardware sectors.
The Nasdaq-100 index constituents generate revenues and profits from the Americas, Europe, Asia Pacific, Middle East and Africa. The Nasdaq-100 constituents generate 60% of their revenues from USA, Canada, Latin America and south America.
"India is an important global market for US and we see the inception of this fund offer as a seminal event which provides Indian investors with access to international and innovative products," Nasdaq OMX Executive Vice President, John Jacobs said.
Motilal Oswal is also hoping to add a new product to its ETF platform in the future, gaining a new asset class each time. This is likely to include building out in sectors such as banking and consumption, and more international products.
For all the investment applications received during the NFO period, MOSt Shares Nasdaq 100 units will be allotted to investors at a price approximately equal to 1/1000th of the closing value of Nasdaq-100 Index available on the allotment date (Indian Standard Time).
The Nasdaq Stock Market is the largest electronic screen-based equity securities trading market in the United States and second largest by market capitalisation in the world.