Motilal Oswal M50 ETF Complete Review & Analysis

Motilal Oswal M50 ETF
Motilal Oswal M50 ETF

The Motilal Oswal M50 ETF is an exchange-traded fund designed to replicate the performance of the Nifty 50 Index, offering investors exposure to the top 50 companies listed on the National Stock Exchange (NSE) of India.

Key Details:

  • Investment Objective: The fund aims to achieve returns that correspond to the performance of the Nifty 50 Index, subject to tracking errors.
  • Fund Performance: As of January 28, 2025, the ETF has delivered a one-year return of 7.30%.
  • Net Asset Value (NAV): The NAV stands at ₹234.5128 as of February 23, 2025.
  • Assets Under Management (AUM): The fund manages assets totaling ₹49 crore as of January 31, 2025.
  • Market Capitalization: The ETF’s market cap is ₹57.09 crore.
  • Price-to-Earnings (P/E) Ratio: The P/E ratio is currently 0.
  • Price-to-Book (P/B) Ratio: The P/B ratio is 0.28.
  • 52-Week Range: The ETF’s price has fluctuated between ₹215.56 and ₹290 over the past year.
  • Top Holding: HDFC Bank constitutes 12.22% of the fund’s portfolio.

Investors can trade the Motilal Oswal M50 ETF on the NSE under the ticker symbol “MOM50.”

Please note that the P/E ratio of 0 may indicate that the fund’s earnings are currently negative or negligible. It’s essential to conduct thorough research or consult with a financial advisor to understand the implications of this metric before making investment decisions.

Motilal Oswal M50 ETF Share Price

As of February 24, 2025, the Motilal Oswal M50 ETF is trading at ₹239.06 per unit. Over the past year, the ETF’s price has ranged between ₹217.02 and ₹290.00. The fund’s market capitalization stands at ₹58 crore.

Who is the Fund Manager of Motilal Oswal M50 ETF

The Motilal Oswal M50 ETF is managed by Mr. Swapnil P. Mayekar. Mr. Mayekar holds a Master’s degree in Commerce from Mumbai University and an Advanced Diploma in Business Administration from Welingkar Institute, Mumbai. Before joining Motilal Oswal Asset Management Company, he gained experience at Business Standard Limited from August 2005 to February 2010.

Motilal Oswal M50 ETF Review

The Motilal Oswal M50 ETF is an exchange-traded fund that aims to replicate the performance of the Nifty 50 Index, providing investors with exposure to India’s top 50 companies listed on the National Stock Exchange (NSE).

Performance Overview:

  • Returns: As of June 30, 2024, the ETF has delivered a one-year return of 26.68%, closely mirroring its benchmark’s return of 26.74%. Since its inception on July 28, 2010, the fund has achieved an annualized return of 11.39%.
  • Net Asset Value (NAV): The NAV stands at ₹234.5128 as of February 23, 2025.
  • Assets Under Management (AUM): The fund manages assets totaling ₹49 crore as of January 31, 2025.

Portfolio Composition:

The ETF invests primarily in large-cap stocks, with approximately 99.96% allocated to domestic equities. The top 10 holdings constitute about 57.50% of the portfolio, with HDFC Bank being the largest holding at 12.22%.

Investment Strategy:

This passively managed fund seeks to mirror the Nifty 50 Index by investing in its constituent stocks in proportion to their market capitalization. This approach ensures that the fund’s performance closely tracks that of the index, subject to minimal tracking errors.

Liquidity and Trading:

Units of the Motilal Oswal M50 ETF are listed and traded on both the NSE and BSE, allowing investors to buy or sell units during regular trading hours through their demat accounts.

Expense Ratio:

The ETF offers a cost-effective investment avenue with a competitive expense ratio, making it an attractive option for investors seeking broad market exposure at a low cost.

Risk Considerations:

While the ETF provides diversified exposure to the Indian equity market, it is subject to market risks, including volatility and potential tracking errors.

Conclusion:

The Motilal Oswal M50 ETF is a viable option for investors looking to gain diversified exposure to India’s leading companies through a passive investment strategy. Its alignment with the Nifty 50 Index, combined with a low expense ratio, makes it suitable for those seeking long-term capital appreciation with a preference for large-cap equities.

Motilal Oswal M50 ETF Top Holdings

The Motilal Oswal M50 ETF is designed to mirror the Nifty 50 Index, providing investors with exposure to India’s top 50 companies. As of January 31, 2025, the fund’s portfolio is heavily weighted towards large-cap equities, with the following top holdings:

  • HDFC Bank: 12.22%
  • ICICI Bank: 8.36%
  • Reliance Industries: 8.13%
  • Infosys: 6.41%
  • Bharti Airtel: 4.13%
Motilal Oswal M50 ETF
Motilal Oswal M50 ETF

Motilal Oswal M50 ETF Returns

As of February 24, 2025, the Motilal Oswal M50 ETF (NSE: MOM50) is trading at ₹239.06 per unit. This ETF aims to replicate the performance of the Nifty 50 Index, offering investors exposure to India’s top 50 companies.

Performance Overview:

Time PeriodFund Return (%)
1 Year11.99
3 Years13.04
5 Years15.23

Key Details:

  • Net Asset Value (NAV): ₹237 as of January 24, 2025.
  • Assets Under Management (AUM): Data not specified in the provided sources.
  • Expense Ratio: Information not available in the provided sources.

Strengths of Motilal Oswal M50 ETF

  • Broad Market Exposure – Provides diversified exposure to the Nifty 50 Index, which consists of India’s top 50 blue-chip companies across various sectors.
  • Passive Management – Since it passively tracks the Nifty 50, it has lower fund management costs compared to actively managed funds.
  • Low Expense Ratio – Being an ETF, it typically has a lower expense ratio than actively managed mutual funds, making it cost-effective for investors.
  • Liquidity – It is listed and traded on NSE and BSE, meaning investors can buy/sell units anytime during market hours at real-time prices.
  • Transparency – The fund’s holdings are disclosed regularly, providing investors with a clear view of its portfolio composition.
  • Market-Linked Returns – Since it mirrors the Nifty 50 Index, it allows investors to benefit from India’s economic growth and stock market performance.
  • Dividend Income – Investors may receive dividends from underlying Nifty 50 stocks, offering an additional source of income.
  • Ideal for Long-Term Investors – Suitable for long-term wealth creation due to its exposure to India’s most valuable companies.

Risks of Motilal Oswal M50 ETF

  • Market Risk – Since the ETF directly tracks the Nifty 50, any market downturn will impact its performance. Investors must be prepared for volatility.
  • Tracking Error – Though the fund aims to replicate the Nifty 50, minor differences (tracking error) can occur due to factors like expenses and cash holdings.
  • Sectoral Concentration – The financial sector (banks and NBFCs) forms a significant part of the Nifty 50. If this sector underperforms, the ETF may also be impacted.
  • Dividend Reinvestment Risk – The fund receives dividends from its holdings, but dividends are not immediately reinvested, which may slightly affect returns.
  • Liquidity Risk – While ETFs are usually liquid, low trading volumes may lead to price differences between NAV and market price.
  • Foreign Investment Risk – If foreign investors withdraw funds from India, it may negatively impact the Nifty 50 and, consequently, the ETF’s performance.
  • No Active Management – Unlike actively managed funds, this ETF does not attempt to beat the market but rather mirrors it, limiting opportunities for extra returns.

Conclusion:

The Motilal Oswal M50 ETF is a low-cost, passive investment option for investors seeking exposure to India’s top 50 companies. However, it is subject to market fluctuations, tracking errors, and sectoral risks. It is best suited for long-term investors who prefer an index-based strategy over active management.

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